Ingham health centers could face layoffs, site closures

LANSING, Mich. (WLNS) – The Ingham Community Health Center Board will have to consider layoffs and site closures amid a growing financial deficit . The board voted Thursday night to hold off any decisions until a special meeting scheduled for August.

County officials say the health centers could hit a deficit of more than $4.5 million at the end of the fiscal year.

“I’m incredibly concerned about all of this. I think this is so important that we clean this up sooner rather than later,” said board member Jody Washington.

The ICHC board oversees 13 sites that provide healthcare services to more than 19,000 people. Concerns over a rising financial deficit and a looming contract negotiation with Ingham County were behind the tension.

A cooperative agreement between the ICHC board and the county is required for federal funding that’s vital to keeping the centers open. However, that agreement expired last month. Some board members claim the months-long holdout is due to not getting clear financial information from the county and health department staff.

“We are not sure about the competence of the CFO, so we need financial staff, and we don’t have the ability to do a marketing campaign,” said ICHC board chair, Mary Molloy during her report to the group.

Earlier this week, the county commissioners voted to extend the contract and, on Thursday night, the ICHC board voted to approve that extension until September. As for the center’s finances, documents show that right now, there is a net income loss of more than $2.6 million.

While debt is racking up, statements from county officials and an email obtained by 6 News show that the board has opted to not make any cuts until an outside firm completes a financial assessment. ICHC Financial Chair, Simon Verghese, said the decision was because the move can have vast implications.

“We wanted to make sure that we have the most information and can make the most informed decision with the high stakes that are in the process,” he said.

However, several officials said the report may not come out until the start of the next fiscal year in October.

Both the health department’s chief financial officer and the ICHC executive director quickly presented a list of options for board members that are expected to reduce costs for the 2025 fiscal year. All options presented included layoffs and site closures. The nearly 10 options increase in intensity and amount saved.

During the discussion, CFO Jennifer Mora said previous budgets developed before her time in the role did not have the ICHC operate within their means. Ingham county staff also made suggestions on reformatting the budget. One of the suggestions involved building around patient visit revenue.

As the board debates the better option, Ingham County Medical Officer Dr. Adenike Shoyinka says a final resolution must ensure that the public gets the health care they need.

“We will do everything we need to do to resolve in order to make sure that we are providing optimal care for the residents of Ingham County,” said Shoyinka.

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