Many hospitals across Michigan are preparing for huge hits to their revenue by postponing new construction projects and freezing hiring. Several hospitals, such as St. John Health System in Warren and Beaumont Hospitals in Royal Oak, have made significant job cuts, ranging from less than 100 to 500 layoffs.
On July 1, reimbursement for Medicare payments to hospitals and other healthcare providers will be reduced by 4 percent to help balance the state budget. The troubles in the auto industry have also affected hospitals; as much as 7-9 percent of hospital budgets come from services to autoworkers, according to the report.
However, some hospitals are prospering in the state, regardless of recent set backs. The University of Michigan Health System in Ann Arbor expects to earn $10 million in revenue when its fiscal year ends on June 30, according to the report.
Read the Free Press’ report about the struggling Michigan hospitals.
