Beaumont contract termination prompts rehab provider to lay off 113 employees

Home Rehabilitation Services of Michigan will close its business in Commerce Township, resulting in the permanent layoff of all its employees, according to a WARN Act notice filed with the state.

HRSM plans to lay off most employees Dec. 30, with the exception of a payroll coordinator who will be laid off Jan. 9. A total of 113 employees are affected, according to Crain's Detroit Business.

In the notice, HRSM attributed the layoffs to the ending of its therapy services agreement with Beaumont Home Care, Southfield, Mich.-based Beaumont Health's hospital-based home care department. The termination of that agreement takes effect Dec. 31.

HRSM didn't respond to messages from Crain's seeking comment.

Beaumont spokesperson Colette Stimmell told Becker's Hospital Review via email, "Earlier this year, as part of our integration as Beaumont Health (a merger that brought Beaumont Health System, Oakwood Healthcare and Botsford Hospital together), we consolidated Oakwood Home Care with Beaumont Home Care and decided to move to an all-employed model of home care, including for in-home therapy services."

She added, "We have been working with HRSM for months on a plan for transitioning to an employed model. All HRSM employees — clinical, support and administrative — are being offered the opportunity to transition to Beaumont employment. We expect to complete this transition by year end. There will be no interruptions to patient care or home care operations."



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