Michigan hospital that lost Medicare funding files for bankruptcy

Pontiac (Mich.) General Hospital has sought Chapter 11 protection after it filed a WARN notice Nov. 15 to lay off 248 employees upon learning it had lost Medicare funding, CBS Detroit reported Nov. 25. 

The hospital filed for protection Nov. 23. Documents revealed it has between $1 to $10 million in assets, owes around $1 to $10 million and has 50 to 99 creditors, CBS reported.

Medicare funding ended for the hospital Nov. 24; however, payment will continue for patients admitted prior to Nov. 24 for up to 30 days, according to a Nov. 8 CMS notice

Layoffs at the hospital will occur in two phases, with 186 employees laid off Nov. 16 and 62 more set to be laid off Dec. 20. 

The hospital believes that the Medicare fund exclusion is temporary and should last less than six months. The layoffs are not expected to be a permanent solution, the Nov. 15 WARN notice said. 

Becker's has reached out to Pontiac General Hospital and will update this story should more information become available.

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