Sturgis (Mich.) Hospital received approval July 6 for $11 million in funds as part of the $77 billion 2022-23 state budget package, Bridge Michigan reported.
The hospital had filed notice that it would be forced to close on July 23 and lay off 194 employees if funding was not approved by July 1.
Sturgis Hospital is situated in a city of 11,000 residents and has struggled with dwindling revenues amid rising costs. The hospital laid off 60 employees in 2018 and closed several departments. The funds from the state will allow the hospital to stay open and become a rural emergency hospital on Jan. 1, 2023, meaning that it will maintain a 24-hour emergency room but no inpatient beds and receive higher federal reimbursement.