One of the region's major health care providers announced dozens of layoffs Friday. Genesys Health System in Genesee County is laying off about 100 full-time employees.
In a written statement, Genesys says the reduction was necessary because of federal budget cuts and the anticipation of less reimbursement in 2014.
The health system will be getting rid of non-critical open positions and two diagnostic and therapy services. Genesys says many employees will be able to find new employment, while others will transition into other positions.
The news follows St. Mary's of Michigan's announcement earlier this week that more than 80 positions would be cut.
Below is the full statement from Genesys:
Genesys, like other healthcare facilities across the nation, is initiating structural and programmatic changes to help ensure its long-term sustainability in the era of healthcare reform. These initiatives will result in the reduction of approximately 100 full-time equivalent positions.
Many of these initiatives were necessary due to reduced reimbursement brought about through the Accountable Care Act and Sequestration. For instance, it is estimated that for its fiscal year 2014 Genesys will have an $11 million reduction in reimbursement for the same amount of patient care it is delivering today.
Starting as early as this summer, the State will be eliminating reimbursement for the room and board of hospice patients who are not in a skilled nursing facility ?? a 38 percent reduction in revenue. With this change, Genesys will relocate its residential hospice services in Goodrich to a separate, dedicated wing of Genesys Convalescent Center (a skilled nursing facility) in Grand Blanc in August.
Genesys is currently evaluating several viable re-purposing opportunities for the Goodrich building site, both medical and non-medical, that would continue to service the community.
In addition to this change, efforts are underway to transition Genesys Health Equipment into a joint venture with other durable medical equipment providers in August, including those that were successful in obtaining Medicare business as part of the Centers for Medicare & Medicaid Services' (CMS) competitive bid process in January (Genesys Health Equipment was not awarded a contract from the State).
Genesys also will be divesting two other diagnostic and therapy service lines; eliminating all non-critical open positions, and implementing action plans to better match service availability and scheduling processes to the demand for services.
Many associates will be able to interview and obtain employment with the new service providers, while others will have an opportunity to transition into critical open positions within Genesys Health System that match their skills and experience.
"Before making these extremely difficult decisions, we thoroughly evaluated every option possible in order to impact the least number of associates," reports Elizabeth Aderholdt, president and CEO of Genesys.
"We looked at duplication of services as well as the demand for services in order to adapt to the current and future changes in healthcare while maintaining the highest quality of patient care."