PETOSKEY -- Another round of deep layoffs for Northern Michigan Regional Health System in Petoskey.
After cutting 50 jobs back in December, Friday the hospital announced it's letting 48 more people go.
The CEO tells 7&4 this decision was made strictly because of the economy. Charity care and bad debt have continued to rise, while the number of people who use the hospital for care and surgery has continued to decline. That is the reason why 48 people are without a job.
"This is something that, although very difficult, we thought was necessary," said NMRH CEO Reezie DeVet.
DeVet says the cuts are effective immediately. She says the reason for the cuts are many. Medicaid and Medicare funding has decreased, out-patient care has increased which means fewer reimbursement dollars, and more people are holding off on surgeries. The layoffs account for two percent of the total workforce
“I don't want people to look at that small percent and think it is small, it isn't," said DeVet.
Administrational, managerial, and clerical positions were targeted to save more than a million dollars. Doctors and bed-side nurses weren't affected.
“It's definitely a set-back, and hopefully the folks who were let go there will be confident in their skills and interested in moving forward in the area," said Angie Ross of the local Michigan Works.
DeVet says the 16 medical transcription positions will be re-filled by a private company.
“That company has already come in, they've already offered those 16 colleagues positions in that company, so it is really up to the colleague to decide," said DeVet.
Last year, the services discontinued and the jobs cut were done to save nine million dollars.
The unemployment rate in Emmet County was 15.8 percent in March of this year.
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Northern Michigan Regional Health System in Petoskey told 48 employees Friday morning their jobs would be cut.
Hospital officials tell UpNorthLive.com the layoffs took place throughout the health system. The cuts are for mangers, clerical staff and administration. No doctors are nurses are included.
Officials say there are always economic pressures that are consistently being looked at.
You may remember the health system announced about 50 job cuts last November . It closed its mental health unit, the specialty care nursery, and the hospitality house On December 18th.
The closures last year saved the hospital about nine million dollars.
