Bronson Healthcare Lays Off 72 Employees
Seventy two employees of Bronson Healthcare were laid off this week. The Hospital says the change in workforce will impact a variety of positions across the system. As of this time, no breakdown has been provided to show how many jobs will be lost in Battle Creek, or other Bronson facilities. Bronson says the people laid off could be rehired for future openings.
The hospital says it has been working proactively to realign operational expenses with lower than expected 2019 revenue caused by declining reimbursement that is affecting health systems across the nation. It says labor constitutes 61% of its operating costs, and that targeted efforts included a small reduction in workforce across the healthcare system that is not expected to affect patient care.
WWMT reported that "decreased funds are due to more adults turning 65 and moving to Medicare plans, a larger enrollment in high-deductible insurance plans that increase hospital debt, among other issues affecting hospitals."
Federal cuts to the Medicaid Disproportionate Share Hospital (DSH) program have jeopardized critical funding to 121 Michigan hospitals. Bronson was slated to be hit hard by the cuts, although nothing like U of M Health System or the Kalamazoo Regional Psychiatric Hospital. .
|Medicaid I/P Utilization Rate
|Total In-State DSH Payments Received
|Total DSH Payments
|University of Michigan Health System
|Kalamazoo Regional Psychiatric Hospital
|Bronson Methodist Hospital
|Bronson Battle Creek Hospital
|Hayes Green Beach Memorial Hospital
The hospital said "We are grateful to those leaving the organization for their service. Eligible employees have been provided with wage and benefits continuation based on their years of employment, as well as outplacement services. All are eligible for rehire and may apply for future job openings that match their qualifications."
The reductions amount to less than 1% of Bronson's nearly 9,000 member workforce.