Detroit Medical Center to reduce staff by 300 employees, reduce salaries

Published On: Apr 16 2013 03:11:44 PM EDT   Updated On: Apr 16 2013 03:17:00 PM EDT

In a letter to employees, physicians and board members on Tuesday, Detroit Medical Center CEO Joe Mullany said DMC will be reducing its staff by 300 employees and reducing salaries for corporate executives, vice presidents and above for the 4th Quarter.

That's a 2 percent cut to the DMC's staffing levels, Mullany said.

The CEO's letter says the cuts are due to revenue shortfalls that healthcare providers across the country are facing after the 2 percent sequestration of Medicare funds and further reductions in payments from the state of Michigan Medicaid programs to DMC hospitals.

In addition to those cuts, Mullany says employee vacations are suspended for the 4th Quarter only.

Read: Mullany's full letter to employees, physicians and board members


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