Beaumont, Spectrum Health cuts hundreds of jobs

GRAND RAPIDS, Mich. (WOOD) — The newly formed Beaumont Health and Spectrum Health system has announced the cut of hundreds of jobs.

MiBiz reported that the health system cut 400 positions across the state to deal with rising costs that have hit the health sector hard this year.

The cuts will affect non-clinical administrative positions, BHSH said. The move comes amid large mid-year losses at Beaumont Health in southeast Michigan and lower profits at Spectrum Health West Michigan.

Mark Sanchez, senior writer at MiBiz, reviewed recent data on whether or not hospital mergers save money.

“There’s a lot of debate about whether healthcare mergers reduce costs. There have been studies, more recently by the American Hospital Association, actually a few years, saying that this led to some optimization and cost reduction,” Sanchez said. “But there have been many other studies that have said, not necessarily, that it doesn’t lead to reduced administrative costs and, in some cases, may lead to higher prices.”

Sanchez also said Michigan’s troubles are spilling over to the US health care industry.

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