(AP) -- WEST BRANCH, Mich. - A mid-Michigan hospital will close its obstetrics unit as part of a $1.2-million budget reduction.
Obstetrical services are expected to end July 1 at the West Branch Regional Medical Center. The move is part of the facility's 2011 fiscal year budget approved Monday night.
Hospital officials said a decline in births, issues with newborn nursery coverage and poor reimbursement of Medicaid claims contributed to the decision.
Chief Executive Officer Douglas Pattullo said the center "simply could not continue to support a service that was losing money at such a staggering pace."
The budget includes reducing expenses by $588,000, labor by $613,000 and layoffs.
The medical center about 145 miles north-northwest of Detroit closed its Pain Clinic April 1.
(Copyright ©2010 by The Associated Press. All Rights Reserved.)
