STURGIS, MI (WTVB) – After the Sturgis City Commission approved a $645,000 loan to help Sturgis Hospital stay operational last Thursday, state funding was approved for the facility.
Bridge Michigan reports that $11 million in state funds was approved last Friday by lawmakers in Lansing as part of the $77 billion state budget.
Hospital officials made the request for the loan from the City of Sturgis on June 15.
Sturgis City Manager Michael Hughes said the loan money would come from the American Rescue Plan Funding. The hospital’s chief financial officer had earlier warned that the loan would only get the facility through July.
The hospital had filed notice that it would be forced to close on July 23 and lay off 194 employees if funding was not approved by last Friday.
The funds from the state will allow the hospital to stay open and become a rural emergency hospital on January 1, 2023.
That is when a new law takes effect that allows small hospitals to be recognized as a rural emergency hospital.
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