Mackinac Straits Health System has become the third northern Michigan hospital in the past four weeks to cut its budget and lay off workers due to new regulations under the Affordable Care Act, WPBN-MI reports.
Because Obamacare reduces government reimbursements to doctors for seeing Medicare and Medicaid patients, Mackinac Straits will have to cut more than $2 million over the next two years.
“We are a small health care system,” said Rod Nelson, Mackinac Straits’ CEO. “We don’t have deep pockets. We don’t have large reserves.”
Nelson said that the health system will have to lay off 15 employees, and a further eight would see reduced hours. Top-level employees will see a pay cut of 5 percent.
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