Michigan hospital laying off over 240 health care workers after losing Medicare program funding
PONTIAC, Mich. (CBS DETROIT) — Pontiac General Hospital announced it is planning to lay off more than 240 people after losing Medicare funding, but added they anticipate the layoffs will be temporary.
A WARN notice from the Centers for Medicare & Medicaid Services says that an agreement between the hospital and the Secretary of Health and Human Services would be terminated because the hospital was not in compliance with some of Medicare's conditions of participation.
Funding for the hospital's Medicare program will end on Nov. 24. However, funding will continue for up to 30 days for patients who were admitted before that date.
According to the letter sent to the Michigan Department of Labor & Economic Opportunity, the hospital says the funding loss was unforeseeable and does not expect the layoffs to be permanent. The hospital also does not believe that the entire facility will be affected.
The first phase of the layoffs will begin on Nov. 29 and impact about 186 workers. The second phase expects to lay off 62 people between Dec. 6 and Dec. 20.
Michigan Pontiac General Hospital WARN notice by CBS News Detroit on Scribd