Detroit Medical Center will lay off 300 employees due to Medicare cuts from sequestration, according to a Detroit Free Press report.
DMC CEO Joe Mullany said the sequestration's cut to Medicare will leave the eight-hospital system with $12 million to $15 million less in Medicare funding. About 70 percent of DMC patients are Medicare or Medicaid beneficiaries, according to the report.
The 300 employees affected by the layoffs represent about 2 percent of the system's full-time equivalent positions. Salaries for corporate executives and vice presidents will also be reduced this quarter, which ends June 30.
DMC also suspended accrual for employee vacation and comp time in the current quarter, and it is considering a voluntary buyout program for employees nearing 65, according to the report.
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DMC CEO Joe Mullany said the sequestration's cut to Medicare will leave the eight-hospital system with $12 million to $15 million less in Medicare funding. About 70 percent of DMC patients are Medicare or Medicaid beneficiaries, according to the report.
The 300 employees affected by the layoffs represent about 2 percent of the system's full-time equivalent positions. Salaries for corporate executives and vice presidents will also be reduced this quarter, which ends June 30.
DMC also suspended accrual for employee vacation and comp time in the current quarter, and it is considering a voluntary buyout program for employees nearing 65, according to the report.
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