Straits Hospital Outsources Laundry Service; Internal Staff Shifts Expected
By Paul Gingras

Laundry service at Mackinac Straits Hospital and Health Center will be outsourced to prison work crews at Michigan State Industries, Straits Correctional Facility Laundry, beginning Saturday, June 23, to partially compensate for proposed state funding cuts in 2008. The decision, which terminates three fulltime positions and saves the hospital approximately $50,000, is likely to cause staff shifts at the hospital, said CEO Rod Nelson.

Two of the three displaced employees are likely to use their seniority rights in the facility's union to move into food preparation and cleaning in the Long Term Care division, displacing workers in that department, said Human Resources Director Karen Cheeseman.

Mackinac Straits Hospital has a shortage of nurse's aides, so the hospital will pay for any displaced employees to train and fill these positions, Mr. Nelson said.

Employees who change positions will receive similar compensation and retain their medical benefits, Mrs. Cheeseman said.

Pamela Paquin-Perez, who works in the laundry department, is president of Local 388, a division the American Federation of State, County, and Municipal Employees (AFSCME).

"There will be a lot of shifting," but the administration has assured employees that no one will be left without a job, she said, adding that all affected employees have opted to shift positions or train to become Certified Nurse's Assistants, including herself.

Job shifts are nothing new. Members of various departments have experienced staffing changes before, and they remain versatile, she added.

There are likely to be more staffing changes in the future, but the hospital has little turnover, Mr. Nelson said.

Contracting out laundry services is one of many initiatives the hospital will take to reduce costs and compensate for an expected 6.25% reduction in Medicaid compensation from the state in 2008, he said.

"We'd rather be on the front end of these changes. We cannot wait for the state to act," Mr. Nelson said, noting that the hospital received $1.3 million less in revenue this year. The state's proposed 6.25% reduction would further decrease Medicaid funding by about $360,000 next year.

About 90% of this revenue is spent on Long Term Care, which is "solid business," Mr. Nelson said.

The Emergency Room is becoming busier by about five to seven cases a day, he added, requiring the hospital to increase hours for its four full-time receptionists. They have reconfigured their schedules to cover incoming calls on weekends. Prior to the decision, staff members, such as nurse's aides, were helping field phone calls. The move helps care givers focus exclusively on patients, Mr. Nelson said.

Every month, the hospital tries to institute new plans to remain financially solvent, increase efficiency, and improve service, he added. Examples include the recent relocation of administrative offices, which freed up space for more patients. The hospital also added cardiac and pulmonary rehabilitation services, and it now shares its radiology database with Northern Michigan Hospital, which often receives patients referred from Mackinac Straits. Sharing the database helps streamline patient care, Mr. Nelson said.