GRAND RAPIDS, Mich. (WOOD) — The newly formed Beaumont Health and Spectrum Health system has announced it will cut hundreds of jobs.
MiBiz reported that the health care system has eliminated 400 positions across the state in a move to address rising costs that have hit the health care industry hard this year.
The cuts will affect non-clinical, administrative positions, BHSH said. The move comes amid big mid-year losses at Beaumont Health in southeast Michigan and lower earnings at Spectrum Health West Michigan.
Mark Sanchez, a senior writer at MiBiz, looked at recent data on whether or not hospital mergers ultimately save money.
“There is a lot of debate out there about whether healthcare mergers reduce costs. There have been some studies, most recently by the American Hospital Association, actually for a couple of years that say it leads to some optimization and it leads to lower costs, Sanchez said. “But there have been many other studies that have said that does not necessarily lead to lower administrative costs and in some cases may lead to higher prices.”[ads1];
Sanchez also said the difficulties in Michigan have spilled over into the US health care sector.