In a report released March 17, the Michigan Medical Society identified key areas of the state’s worsening physician shortage. It included a 14-point plan for addressing the shortage which included expanding pay and reimbursements.
Here are 10 other key takeaways from the report:
1. Nearly one in three Michigan residents lack access to primary care, and the state spends a fraction of what experts say primary care requires. Michigan directs only about 5% of total healthcare dollars to primary care — 5.8% for commercial payers, 4.2% for Medicaid, and just 3.8% for Medicare. Experts say 12–15% is necessary for a robust primary care system. Other developed countries spend an average of 14% of healthcare expenditures on primary care and achieve better outcomes at lower overall cost.
2. More than 30% of Michigan’s current physicians are over age 60.
3. The state retains only 45.6% of the Graduate Medical Education residents it trains — making it one of the largest exporters of medical students in the country. By comparison, California retains 78% of its trained physicians.
4. Michigan is projected to be short 862 primary care physicians by 2030. Under the current model of care, researchers at the Robert Graham Center estimate Michigan will face a deficit of 862 primary care physicians within five years, driven by an aging population, the effects of the Affordable Care Act expanding coverage, and population growth.
5. Forty-three percent of Michigan physicians report experiencing burnout. Among primary care physicians specifically, the burnout rate has climbed sharply — from 31% in 2018 to 46% in 2023.
6. The vast majority (85%) of Michigan physicians cite administrative burdens and regulatory requirements, including charting and paperwork, as significant contributors to their stress.
7. Healthcare costs are rising fast, and Medicaid work requirements could soon strip coverage from 500,000 Michiganders. In 2025, healthcare for a typical American family of four on an employer-sponsored plan cost $35,119 — up from $33,067 in 2024. Costs are projected to rise another 8.5% for group plans in 2026. Compounding the problem, the introduction of Medicaid work requirements in 2027 is estimated to cause roughly 500,000 people — 5% of Michigan’s total population — to lose coverage.
8. Applications to family medicine residencies dropped 19.6% nationally between 2019 and 2024. A key reason: 74% of medical students who identified family medicine as their top specialty choice reported experiencing microaggressions or discrimination based on that preference, with other medical students (69%) and faculty (47%) cited as the most common sources.
9. The report calls for Michigan to set a legislative primary care spending target of 12%. Seven other states — including Oregon, Rhode Island, Delaware, and California — have already passed legislation or taken executive action to increase primary care’s share of total medical spending, according to the report. MSMS recommends Michigan do the same, targeting 12% over four years using 2% annual incremental increases. At the national average per-person spending level, 12% equates to roughly $1,748 per person per year.
10. The report’s 14 recommendations cluster around four strategies: (1) reforming how primary care is paid, shifting from fee-for-service to a hybrid payment model; (2) reducing administrative burden on practices; (3) reshaping medical education to direct more students toward primary care and underserved communities; and (4) improving physician recruitment and retention through loan repayment programs, financial incentives, and expanded use of Michigan’s existing state loan repayment infrastructure.
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