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BREAKING: McLaren Making Cuts

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Photo: Video by fox47news.com

BREAKING: McLaren Making Cuts

By FOX 47 News. CREATED Oct 19, 2013

For the second time in the last five weeks, one of Lansing's hospitals is making cuts.

This time it's McLaren Greater Lansing, which is reducing employee hours and laying off some of its staff. It's unknown how many people are being let go, but McLaren has 1,800 total employees and fewer than 20 of the layoffs will be management positions.

Overtime is being eliminated, overall hospital supply costs will be reduced and workers in several departments will have their hours cut based on the number of patients they're seeing.

McLaren has lost some Medicare reimbursement money because of the sequester--- the mandatory spending cuts that were part of a congressional budget earlier this year. In McLaren's case, it came to 2% of the money it used to get for treating Medicare patients. The hospital has also been seeing fewer patients overall.

McLaren released a statement saying the cuts will "position our hospital for long-term sustainability in the face of these unprecedented changes in health care."

It's not just McLaren making cuts. A little more than a month ago, Sparrow Hospital in Lansing announced it was cutting jobs, reducing other costs and making administrative changes to offset the loss of $5 million this year alone in Medicare reimbursements because of the sequester. Those federal spending cuts are in effect until at least mid-January.