Children’s Minnesota said Wednesday that the nonprofit health system is eliminating 150 jobs due to a variety of financial problems including fewer patients seeking care during the coronavirus pandemic.
The 150 jobs being eliminated amount to roughly 3% of the workforce, the hospital said in a statement to the Star Tribune. Another 150 open positions will not be filled.
“Like other health care organizations, COVID-19 presented tremendous challenges to Children’s Minnesota,” the hospital said in the statement. “Given the financial impact of decreased volumes, the need to increase operational efficiency and the need to support the organization’s redesign efforts in 2021 and beyond, Children’s Minnesota has made the difficult decision to permanently reduce staffing levels.”
The chief executive at state’s largest pediatric hospital told the Star Tribune last month that “significant” job cuts would be coming over the next year or two as part of a long-term restructuring.
Dr. Marc Gorelick cited factors ranging from lower payment rates from state Medicaid programs to new contracts with health insurers designed to save money. There also had been a reduction, Gorelick said, in procedure volumes with the pandemic.
In the statement Wednesday, Children’s said positions are being eliminated across the health system in executive, management, clinical and support areas.
This is a developing story. Check back for updates.
Twitter: @chrissnowbeck