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CentraCare Plans 535 Job Cuts Across 44 Sites

CentraCare blames unsustainable costs coupled with reimbursements that fall short of care expenses

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Overview

  • CentraCare has informed Minnesota regulators of plans to eliminate about 535 positions across 44 hospitals and clinics
  • Approximately 70 percent of the roles targeted are administrative and support staff while the remainder are patient-care positions
  • The health system has sent an early state notice of pending layoffs but has not filed a formal WARN notice
  • CentraCare is prioritizing redeployment of affected workers into roughly 350 existing vacancies systemwide, which may reduce the final head count
  • Last fiscal reports show the organization’s slim 1.2 percent operating margin turned into a $19.8 million loss as costs outpace reimbursements