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Health system to lay off 300 amid federal cuts

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DETROIT (AP) -

The Detroit Medical Center says it will lay off 300 employees and cut pay to top executives because of the automatic reduction in the federal budget.

The eight-hospital health system announced the plans Tuesday in a letter to employees, physicians and board members, citing reductions in Medicare funding. The Detroit Free Press and The Detroit News report job cuts are expected to be for non-medical staff.

CEO Joe Mullany says the health system is facing a revenue shortfall and needs to cut costs.

The federal budget reduction is expected to cost the Detroit Medical Center $12 million to $15 million. In all, the Michigan Health and Hospital Association estimates the federal reductions will cost Michigan hospitals $143 million this year and $1.4 billion over 10 years.

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