Seventy-two jobs have been eliminated by a health system in the region.
Kalamazoo-based Bronson Healthcare said today the cuts are due to declining reimbursements that have resulted in lower-than-expected 2019 revenue.
“As labor constitutes 61% of Bronson’s operating costs, our targeted efforts included a small reduction in workforce across the health care system that is not expected to affect patient care,” Bronson Healthcare said.
Impacted employees were informed last week.
Eligible employees have been provided with wage and benefits continuation based on their years of employment and outplacement services. All may apply for future Bronson job openings and are eligible for re-hire.
Bronson continues to post job openings and hire for essential positions.
The health system employs nearly 9,000 people.
Bronson said it has been “working proactively” to combat the decline in reimbursements that hospitals and health systems around the country are facing.
The organization said there are several general causes of the revenue decline: insurance payments shifting from inpatient to lower outpatient rates for many types of care; more adults turning 65 and moving from commercial insurance to lower-paying Medicare plans; greater enrollment in high-deductible plans that increase hospital bad debt when patients cannot afford to pay their deductibles.