Detroit Medical Center announces layoffs because of cuts in Medicare funding caused by sequester

DETROIT (WXYZ) - In a letter to employees, physicians and board members, Detroit Medical Center CEO Joe Mullany says the sequester is forcing the DMC to reduce and realign staff levels in departments that do not affect patient care.

The moves are expected to affect 300 people. 

The DMC will also reduce salaries for corporate executives, VPs and other high level employees for the fourth quarters.

They will also suspend Employee CTO/Vacation Accrual for the 4th quarter, which runs from April 15 to June 30. It will not apply to employees who were hired after October 1, 2012.

Mullany says the moves are necessary to make up for the revenue shortfalls that resulted for the 2% cuts in Medicare funds that accompanied the sequester, as well as reductions in payments from the State of Michigan Medicaid programs.

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