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Reorganizing Happening At Sturgis Hospital
Thursday Apr 12, 2018 12:08pm
Sturgis, MI

By: Mike Stiles

(photo courtesy of Sturgis Hospital)

(STURGIS) – Significant financial difficulties are forcing Sturgis Hospital to make some changes.

In a media release, Sturgis Hospital CEO and President Rob LaBarge says there are several factors that are causing the Hospital to take these steps. Reimbursements received from Medicare, Medicaid and other insurers have not kept pace with the increase in costs seen at the Hospital. In addition, some of the payments the Hospital receives from the State of Michigan have gone down.

LaBarge says they also continue to see increases in cost for staff wages and increases in supply and drug costs. Salaries and benefits account for over 50 percent of the total cost of the Hospital's operation. There has also been a decline in inpatient and outpatient volumes since the start of the fiscal year that was not anticipated.

The Hospital has closed non profitable departments and have added new revenue services, but they have not been enough to keep pace with the reduction in other revenue.

LaBarge says the Hospital Board of Directors has directed Hospital Administration to seek and evaluate potential partners whose assets can enhance the Hospital's. Operational changes will affect the equivalent of between 15 and 20 full-time positions in areas across the organization, including departments of the Hospital and the Hospital owned physician practice.

The Constantine-White Pigeon AM/PM Care Plus will be closing as of May 1. Also, reworking hours of operation in hospital departments and service to better match the needs of patients and to manage costs will be happening.

The Board and Administration will continue to monitor and actively evaluate budget expectations and make further adjustments if required.
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