Minneapolis-based Fairview Health Services has made the "difficult but necessary" decision to eliminate about 250 positions in response to a range of ongoing challenges, including inflation, high labor costs and lagging payment rates from insurers, according to a Nov. 2 statement provided to Becker's.
The cuts equate to less than 1% of Fairview's workforce, and most of the affected roles are not full-time positions, according to the system. It is not clear exactly how many employees are being laid off, since some of the jobs are not currently filled.
Fairview said the timing for departures will be made on a case-by-case basis, but they should be implemented before the end of the year.
Affected employees will receive various types of support, including retraining, job search assistance, resume and interview training, and priority hiring opportunities "for one of the 1,600 available positions in our system," a spokesperson for the system told Becker's.
"Fairview continues to take thoughtful, deliberate steps to strengthen our organization and ensure that we can operate sustainably in a healthcare environment that is facing tremendous pressures," the system said in a statement. "An important and necessary part of this work is aligning our workforce to evolving strategic priorities, all while addressing the demands of inflation, including increasing labor costs, and payer reimbursements that don't keep pace with inflation."