PONTIAC, Mich. (CBS DETROIT) — Pontiac General Hospital has announced it plans to lay off more than 240 people after losing Medicare funding, but expects the layoffs will be temporary.
A WARN notice from the Centers for Medicare & Medicaid Services states that an agreement between the hospital and the Secretary of Health and Human Services would be terminated because the hospital did not meet a number of Medicare eligibility requirements.
Funding for the hospital’s Medicare program ends Nov. 24. However, funding will continue for up to 30 days for patients admitted before that date.
According to the letter to the Michigan Department of Labor & Economic Opportunity, the hospital says the funding loss was unforeseeable and does not expect the layoffs to be permanent. The hospital also does not believe the entire facility will be affected.
The first phase of layoffs will begin on November 29 and will affect approximately 186 employees. The second phase is expected to lay off 62 people between December 6 and 20.
