Michigan hospital to shutter clinic, cut jobs amid financial hardship

Sturgis (Mich.) Hospital will cut jobs and close one of its three urgent care centers serving the Constantine and White Pigeon communities due to financial struggles, according to a Sturgis Journal report.

Rob LaBarge, president and CEO of the hospital, said in the report the organization has struggled financially due to factors such as insufficient reimbursement from payers to cover costs, as well as reduced reimbursement from the state and for the federal 340B Drug Pricing Program. He also cited decreases in patient volumes and increases in salary and benefit expenses as contributing factors.

Sturgis Hospital previously implemented various operational changes to improve its financial situation. For instance, the hospital closed its pain management center and wound clinic in December. The hospital also reduced staff by 13.9 full-time equivalent positions, affecting jobs at the closed clinics as well as in other areas such as dietary, emergency department and Sturgis Pediatrics.

Now, the hospital is making additional changes, including efforts to "seek and evaluate potential partners whose assets can enhance and strengthen the future outlook," reports the Sturgis Journal. Changes also include the impending urgent care center closure, slated for May 1, and "reworking hours of operation in hospital departments and services to better match the needs of patients and more effectively managing costs," the publication states.

Overall, these new changes will affect 15 to 20 full-time positions. Hospital officials did not specify the number of affected employees, but said the job cuts include hospital departments and the hospital-owned physician practices.




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