Published in Health Care

Bronson to lay off 72 people, citing lower insurance reimbursements

BY Wednesday, July 24, 2019 11:17am

KALAMAZOO — Bronson Healthcare Group trimmed its workforce this week.

In cutting 72 positions, or less than 1 percent of its workforce, the Kalamazoo-based health system cited lower reimbursement rates from health insurers and Medicare and Medicaid as care increasing shifts from an inpatient setting to outpatient, plus bad debt from patients with high-deductible health plans.

COURTESY PHOTO

The layoffs came in a variety of positions from across the health system, according to Bronson.

“Bronson Healthcare has been working proactively to realign operational expenses with lower than expected 2019 revenue caused by declining reimbursement that is affecting health systems across the nation,” the health system said in a statement. “As labor constitutes 61 percent of Bronson’s operating costs, our targeted efforts included a small reduction in workforce across the healthcare system that is not expected to affect patient care.”

We are grateful to those leaving the organization for their service. Eligible employees have been provided with wage and benefits continuation based on their years of employment, as well as outplacement services. All are eligible for rehire and may apply for future job openings that match their qualifications.”

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