MARYVILLE, Tenn. (WATE) — A furlough of 62 employees at ProNova Solutions is being blamed on a proposed reduction in Medicare payments.
The medical sciences company said the proposal would cut the federal reimbursements for radiation services by half.
The furloughs affect 70% of the company’s workforce. They began on Wednesday in different positions throughout the company.
ProNova Solutions President of R&D and Manufacturing Joe Matteo said late Thursday the company is working with the National Association of Proton Therapy to resolve the matter with Medicare.
“This is not over,” Matteo said. “This is just doing the right thing from a business perspective.
“Medicare has proposed a drastic reduction in rates and banks are unwilling to fund these centers, and we are working hard with our Congressional members to be able to end the furloughs.”
Blount Partnership CEO Bryan Daniels said county economic officials are trying to figure out how to respond and hoping Congress will intervene.
“These are furloughed jobs, not permanent (layoffs) at this point,” Daniels said. “About 30 (employees) will remain to service existing machines in the United States because those machines are treating patients and saving lives.”
The furloughs will not affect the operation of the Provision CARES Proton Therapy Centers in Knoxville or Nashville, Matteo said. There is no definite timeline for the employees to return at this time.
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