WEST BRANCH (AP) -- A mid-Michigan hospital will close its obstetrics unit as part of a $1.2 million budget reduction.
Obstetrical services are expected to end July 1 at the West Branch Regional Medical Center. The move is part of the facility's 2011 fiscal year budget approved Monday night.
Hospital officials said a decline in births, issues with newborn nursery coverage and poor reimbursement of Medicaid claims contributed to the decision.
Chief Executive Officer Douglas Pattullo tells WNEM-TV that the center "simply could not continue to support a service that was losing money at such a staggering pace."
The budget includes reducing expenses by $588,000, labor by $613,000 and layoffs.
The medical center closed its Pain Clinic April 1.
Cheboygan Memorial Hospital closed down its obstetrics unit earlier this year for budget concerns as well.
(Copyright ©2010 by The Associated Press. All Rights Reserved.)
