ST. CLOUD, Minn. (FOX 9) - St. Cloud-based CentraCare is bracing for upcoming layoffs as the company deals with financial pressures.
CentraCare layoffs
What we know:
CentraCare has sent an early notice to the state about pending layoffs that the company says will mostly impact administrative and support workers.
Officials say a WARN notice is not required for the layoffs.
What they're saying:
In a statement to FOX 9, the company says it is making "staffing adjustments" to respond to "rising costs and reimbursement rates that no longer cover the true cost of care."
The statement reads in part: "CentraCare is responding to significant external pressures including rising costs and reimbursement rates that no longer cover the true cost of care. To safeguard the organization’s stability and to continue delivering high-quality care, we have made difficult but necessary staffing adjustments. These changes were carefully considered and mostly affect administrative and support roles, though some patient care positions were also impacted… While difficult, making these adjustments now will strengthen CentraCare’s foundation to remain a trusted healthcare partner. We look forward to continuing to serve our communities with compassion and excellence for many years to come."
The backstory:
According to CentraCare, the layoffs could affect about 535 workers. However, CentraCare and Minnesota DEED say that number is likely to change.
The total number of layoffs could potentially be significantly lower than that reported figure. In a statement to FOX 9, CentraCare said the final number will depend on how many workers can be transitioned into 350 open positions within the organization. The company says they are prioritizing internal placement when possible.
CentraCare is by far the largest employer in St. Cloud with 7,541 employees in the city and 11,600 workers company-wide.
The Source: This story uses information provided by the state and a CentraCare representative.