Michigan hospital loses Medicare funding, plans 248 layoffs

Pontiac (Mich.) General Hospital filed a WARN notice Nov. 15 to lay off 248 employees after the hospital unexpectedly learned that it was excluded from receiving Medicare funds. 

CMS filed a Nov. 8 notice that the hospital was not in compliance with several Medicare conditions of participation and that Medicare would halt payment for inpatient hospital services on or after Nov. 24. 

The layoffs will occur in two phases. In the first phase, 186 employees were laid off Nov. 16, with the remaining 62 set to be laid off Dec. 20. 

Among some of the positions being cut were registered nurse supervisor, pharmacy tech, nursing manager, lab assistant, registered pharmacist and senior recruiter. 

"Pontiac General … believes that this exclusion from receiving Medicare funds is temporary and will last for less than six months, and thus the layoffs are not expected to be permanent," the WARN notice said. "Pontiac General does not anticipate that the entire facility will be affected and that there will not be a complete shutdown of the facility."

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