Posted By Tom Plahutnik, Web Editor/Producer - email
GENESEE COUNTY, MI (WNEM) -
For the second time in less than a week, another major healthcare provider in Mid-Michigan has announced substantial layoffs that are being blamed on "changes in the healthcare environment."
Genesee County's Genesys Health System says 100 full-time positions are being eliminated to "better position for healthcare reform."
"Genesys, like other healthcare facilities across the nation, is initiating structural and programmatic changes to help ensure its long-term sustainability in the era of healthcare reform," said Genesys in a statement on Friday afternoon.
On Tuesday, St. Mary's of Michigan announced that 83 positions would be cut, along with a number of open positions that are currently not filled.
A company spokesperson said St. Mary's is facing declining volumes due to fewer people seeking inpatient care services, sequester shortfalls and lower reimbursement from Medicaid and Medicare and other payers.
Here is the statement Genesys released Friday in its entirety:
Genesys, like other healthcare facilities across the nation, is initiating structural and programmatic changes to help ensure its long-term sustainability in the era of healthcare reform. These initiatives will result in the reduction of approximately 100 full-time equivalent positions.
Many of these initiatives were necessary due to reduced reimbursement brought about through the Accountable Care Act and Sequestration. For instance, it is estimated that for its fiscal year 2014 Genesys will have an $11 million reduction in reimbursement for the same amount of patient care it is delivering today.
Starting as early as this summer, the State will be eliminating reimbursement for the room and board of hospice patients who are not in a skilled nursing facility – a 38 percent reduction in revenue. With this change, Genesys will relocate its residential hospice services in Goodrich to a separate, dedicated wing of Genesys Convalescent Center (a skilled nursing facility) in Grand Blanc in August. Genesys is currently evaluating several viable re-purposing opportunities for the Goodrich building site, both medical and non-medical, that would continue to service the community.
In addition to this change, efforts are underway to transition Genesys Health Equipment into a joint venture with other durable medical equipment providers in August, including those that were successful in obtaining Medicare business as part of the Centers for Medicare & Medicaid Services' (CMS) competitive bid process in January (Genesys Health Equipment was not awarded a contract from the State).
Genesys also will be divesting two other diagnostic and therapy service lines; eliminating all non-critical open positions, and implementing action plans to better match service availability and scheduling processes to the demand for services.
Many associates will be able to interview and obtain employment with the new service providers, while others will have an opportunity to transition into critical open positions within Genesys Health System that match their skills and experience.
"Before making these extremely difficult decisions, we thoroughly evaluated every option possible in order to impact the least number of associates," reports Elizabeth Aderholdt, president and CEO of Genesys.
"We looked at duplication of services as well as the demand for services in order to adapt to the current and future changes in healthcare while maintaining the highest quality of patient care."
Neither Genesys or St. Mary's specifically identified the Affordable Care Act, also known as "Obamacare" by some, as a contributing factor for the cuts. Stay with WNEM.com and TV5 as we continue to follow this story.
Copyright 2013 WNEM (Meredith Corporation). All rights reserved.
Do you think more layoffs are coming in the medical industry in Mid-Michigan?
Thank you for participating in our poll. Here are the results so far:
Thursday, December 5 2013 3:38 PM EST2013-12-05 20:38:37 GMT
WNEM.com has learned authorities have set up a perimeter outside Kearsley High School in Flint after the school received a bomb threat on Thursday. Police arrived at the scene around noon and schoolMore >
Authorities have issued an "all clear" after a bomb-sniffing dog combed through a high school near Flint after school officials said they received a bomb threat.More >
Thursday, December 5 2013 8:43 AM EST2013-12-05 13:43:23 GMT
SACRAMENTO, CA (CNN) - Hannah and Tom Hepner are the proud parents of triplets. But these aren't just any triplets, they're extremely rare babies. They were conceived naturally without the help of fertilityMore >
Hannah and Tom Hepner are the proud parents of triplets.More >
Wednesday, December 4 2013 12:50 AM EST2013-12-04 05:50:10 GMT
(CNN) - The 2013 top baby names for boys and girls have been released and they show that celebs are out and tradition is in. Pregnancy website babycenter.com compiled the list from the more than 500,000More >
Does your child have one of the year's most popular names? More >
Thursday, December 5 2013 1:41 PM EST2013-12-05 18:41:52 GMT
Workers are expected to walk off their jobs Thursday at fast-food restaurants across Michigan as part of a national protest in 100 cities against low wages. Two strikes are scheduled to start at 6 a.m.More >
Workers walked off their jobs at a fast-food restaurant in Detroit as part of a national protest against low wages.More >
Wednesday, December 4 2013 11:59 AM EST2013-12-04 16:59:22 GMT
Darien police said they were investigating the claim that a 7-year-old girl found a long, rusty nail in a cookie.Police said the girl found the nail in a cookie she bought from a Post Road Panera Bread.OfficialsMore >
Darien police said they were investigating the claim that a 7-year-old girl found a long, rusty nail in a cookie.More >
Thursday, December 5 2013 5:29 AM EST2013-12-05 10:29:20 GMT
If you're behind on your child support payments, you're in luck. Genesee County is offering an amnesty program to any of the nearly 7 thousand parents with outstanding warrants for child support. It'sMore >
If you're behind on your child support payments, you're in luck. Genesee County is offering an amnesty program to any of the nearly 7 thousand parents with outstanding warrants for child support.More >
Thursday, December 5 2013 1:30 PM EST2013-12-05 18:30:41 GMT
Gov. Rick Snyder announced the appointment of Michael Carpenter, of Midland, to the 75th District Court serving Midland County on Thursday. "Michael has decades of experience in the legal profession,More >
Gov. Rick Snyder announced the appointment of Michael Carpenter, of Midland, to the 75th District Court serving Midland County on Thursday.More >