Waukesha-based Kinex Medical Co. LLC is outsourcing its patient billing business, resulting in the loss of 56 jobs, a company official said.
The move was made in response to lower sales because patients are delaying or deciding not to have orthopedic surgeries, said Mike Daane,company president.
The company on Thursday filed notice of the layoffs with the state Department of Workforce Development.
The patient billing business is being taken over by a Missouri company that specializes in medical billing.
Kinex is a privately held company.
"It was in response to tighter margins and insurance companies paying us less," Daane said. "We did this to maintain Kinex Medical Co. as a viable business going forward. It's not a wind-down situation or closing up shop."
Kinex designs and manufactures continuous passive motion devices that aid patients in their recovery from orthopedic surgery and orthopedic trauma.
The cuts represent about 65% of the company's staff in Waukesha.