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CMH Announcement

CMH Announces Cost-Reduction Initiative

Cheboygan Hospital Announces Cost-Reduction Initiatives.

As a result of multiple economic factors over the last decade, Cheboygan Memorial Hospital (CMH) is currently facing an operational cash flow challenge that necessitates further cost reductions. The CMH Board of Trustees has agreed to cost-reduction initiatives which will begin to improve the organization's financial situation and ensure patient safety and access to quality healthcare.

To address these challenges, the following changes are among those scheduled to take place:

- Urgent Care Walk-in Clinic will no longer see patients after February 7, 2010. However, other services in the Cheboygan Memorial Health Center will remain open, including family practice clinics.

- CMH will no longer provide obstetric services after March 31, 2010, but gynecology services will continue.

- Women's & Children's Health Services will no longer see obstetric patients after March 31, 2010, but pediatric services continue.

While the exact number of employees effected hasn't been determined yet, these cost-reduction initiatives will result in an annual cost savings of more than four-million dollars.

The environment that lead to this situation includes:

  • Reduction in reimbursements, especially Medicaid, coupled with under insured and uninsured patients.
  • Impact of Michigan's current economic condition leading to cuts in Medicaid, reduced elective procedures and the regulatory climate of healthcare reform.
  • Unmet patient volume projections.
  • Operational cash flow challenges that threaten the financial viability of the organization.

"CMH is making the appropriate and responsible decisions necessary to ensure our long-term viability. This focus helps guide our mission of providing quality healthcare services for our community," said Brian Dietz, CMH President/CEO.

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Cheboygan
Memorial
Hospital
748 S. Main Street
Cheboygan, MI 49721
231-627-5601
800-866-9196