PONTIAC, Mich. (Michigan News Source) – Pontiac General Hospital will lay off more than 240 people after it lost Medicare funding amid a patient rights investigation.

The Centers for Medicare & Medicaid Services (CMMS) said an agreement between the hospital and the Secretary of Health and Human Services would be terminated due to the hospital’s lack of compliance with some of Medicare’s conditions of participation.

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As documented in a WXYZ report, allegations of “noncompliance” and patient rights violations triggered the layoff decisions.

While the funding for the hospital’s Medicare program will end on Nov. 24, it will continue for up to 30 days for patients admitted before that date.

The hospital says it does not expect the layoffs to be permanent. The first phase of the layoffs will begin on Nov. 29 and impact about 186 workers. The second phase expects to lay off 62 people between Dec. 6 and Dec. 20.