One of Detroit’s Largest Hospital Systems Cuts Nearly Two Dozen Jobs

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Detroit Medical Center Is Cutting 22 Jobs

One of the largest chains of hospitals in midtown Detroit, the Detroit Medical Center (DMC), has announced that it will be cutting nearly two dozen jobs..

The hospital system has confirmed that 14 nurse practitioners and physician assistants are being laid off. This round of job cuts will also include the elimination of eight positions that are currently unfilled, which means a total of 22 jobs will be gone.

The Detroit Medical Center, which currently employs a workforce of roughly 12,000 employees, operates eight hospitals and institutes. The hospital chain relies on Medicaid insurance reimbursements as its biggest revenue source.

DMC spokesperson Melanie Moss, the market director of public relations and external affairs, says the layoffs were deemed necessary for “better care coordination” for the patients. She has not given any further explanation for the layoffs.

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The job cuts were announced just two days after hospitals within the system underwent a significant change in their executive C-suite. Positions including Chief Financial Officer (CFO), Chief Medical Officer (CMO), and Chief Operating Officer (COO) were affected in the restructuring.

The DMC has integrated two executive management teams (which were running three hospitals) in order to eliminate unnecessary layers in the hierarchy. The three DMC hospitals—Detroit Receiving Hospital, Harper University Hospital, and Hutzel Women’s Hospital—now have a single executive management team that will oversee all three of them.

The last time the hospital system cut a significant number of employees was last autumn, when about one percent of its workforce was cut. That initiative was part of the hospital system’s cost-reduction efforts.

The DMC laid off 60 employees in 2016, while eliminating 40 unfilled positions. An additional 30 employees were reassigned to other jobs within the system. The layoffs and transfers were reported to have saved DMC about $17.0 million.

The hospital system’s reorganization doesn’t end there. In the last year, the hospital faced unexpected resignations from top executives on various occasions.

The future of the Medicaid program, which was amended by the Barack Obama administration under the Affordable Care Act, is facing significant uncertainty. The Donald Trump administration has been trying to repeal the Affordable Care Act and cut back on federal funding to the Medicaid program. This can severely hurt the finances of hospitals that rely heavily on the program.

Sources

DMC cuts staff by at least 18, restructures management,” Crain’s Detroit Business, July 18, 2017.

Detroit Medical Center selects COO, CFO & CMO for 3-hospital exec team,” Becker’s Hospital Review, July 17, 2017.

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