Planned Parenthood to Make Cuts as Donations Run Out

by Gabe Bullard on June 20, 2011

The donations have run out for Planned Parenthood of Indiana, and layoffs, furloughs and service cuts are forthcoming.

Planned Parenthood has been using donations to pay for services to its 9,300 Medicaid patients since May, when Governor Mitch Daniels signed a law stripping the agency of its $1.4 million in public funding.

But the donations have run out and a hoped-for ruling in a legal challenge to the law hasn’t arrived. Organization officials say that leaves them with no choice but to begin cutting staff and services.

No services will be provided to Medicaid patients unless they can pay out of pocket. Two specialists at the Muncie branch will be laid off. And most employees will be furloughed without pay later this week.

The U.S. Justice Department has taken Planned Parenthood’s side in the challenge to the law, and a ruling is due by July 1st. A spokeswoman says if the judge’s ruling isn’t favorable, more layoffs and office closures will likely be necessary.

Attorney General Greg Zoeller says the law is fair and his office will continue to defend it. The state is appealing to change its rules for receiving Medicaid funding to accommodate the new law.

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