Rising healthcare costs and increasing unemployment rates are leading to cutbacks for some northern Michigan hospitals, and the region's largest medical center is no exception.
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The nation's highest unemployment rate and a record number of uninsured people are impacting healthcare systems right here in northern Michigan. Earlier this week Cheboygan Memorial Hospital, which is part of Munson Healthcare, announced staff cutbacks as a direct effect of the current economic state and patient reduction.
"I suspect in having some of the difficulties that some of the smaller hospitals in our northern Michigan region are without that continued growth, its very difficult to maintain any margin...you couple that with the loss of investments its a very difficult situation," said Munson’s Chief Financial Officer Ed Carlson.
While Munson Medical Center's Chief Financial Officer says the hospital has not had to resort to layoffs, when it comes to investments it's a different story.
"We've seen about a 10--percent drop in our investments through July and September and we expect another five to eight percent drop in October. We need additional surgery suites... we believe we can delay that for several months. There are several pieces of equipment that we're likely to delay for up to six months."
On top of having to hold off on future development the credit crunch is also making it more difficult to borrow money. Due to the generosity and support from the community Carlson says Munson hasn't had to borrow funds for several years, but as times get tougher financially even that is starting to dry up.
"We don't expect people will turn that spicket off but it will be very difficult for individuals and families, in a time where their investments are declining significantly, to make significant gifts."
Fortunately for the area's largest hospital patient service is up five percent from last year, but on the flip side due to the staggering amount of uninsured patients, since 2005 the healthcare system's total amount of bad debt and charity care has tripled from 10--million to 30--million.
"We provide full coverage for charity or uncompensated care for individuals who are at 200% or less of the federal poverty level."
By law the emergency room will not turn anyone away, insurance or not, but keep in mind if you find yourself in need of medical attention and it is not an emergency, there are other resources available like the Traverse Health Clinic and Coalition that you can go to for help. Many communities now have free clinics available for patient care. Call your local hospital for more information.
