FREDERICK, MD- More than 40 people are being laid off at Frederick Memorial Hospital. Officials say it's partially due to decreasing Medicare reimbursements.

"What hospitals are doing nationwide, and in Maryland in particular, are to find ways to adjust the provision care models to adjust to the decreasing amount of Medicare reimbursements," says Harry Grandinett, director of communications, Frederick Memorial Hospital. 

Folks in the area say the thought of any number of cuts worries them. 

"I guess layoffs are hard for any business or company, but its part of the industry. I guess they're trying to save money," says Corey Dorsey, of Frederick. 

"I'm a little worried when people start leaving hospitals. That's one of the things we need the most around here, everyone gets sick at some point in their life and we need as much help as possible," says Carly Ball, of Frederick.

Hospital officials say the healthcare reform law has them making adjustments and part of them, called for these layoffs.

"As the health care reform law kicks in, people are unsure what to expect and unsure what the future holds in the health care arena," says Grandinett.

He went on to say that FMH is doing what it needs to do to ensure patients get the quality care they deserve.

Most of those facing the layoffs were from outpatient departments, so hospital officials say they could easily be placed in different departments in need.

Nearly 20 people already have new positions at the hospital.