Bangor, Maine-based Northern Light Health is outsourcing 500 housekeeping and cafeteria jobs to Compass One Healthcare, effective Jan. 1, a spokesperson for the health system confirmed to Becker's on Oct. 20.
There are no layoffs associated with the change and all affected employees will be able to transition employment to Compass One, the health system said.
Four notes:
- The move is expected to reduce costs and improve operational efficiencies, Northern Light Health spokesperson Suzanne Spruce told Becker's. The health system said it does not have additional plans to outsource or restructure other roles.
"Our new relationship with Compass One will reduce costs through alignment and efficiencies in operational functions while creating new opportunities for our team members in support services," she said. - In the same week, the health system asked three senior leaders to resign. Northern LIght Health eliminated the role of its system vice president and foundation president, Mike Smith, and asked two hospital presidents to step down. The health system said it has been taking "difficult but necessary decisions" in recent weeks to reduce operating expenses and ensure access to high-quality care.
- In March 2023, Northern Light outsourced 1,400 jobs in revenue cycle management, information systems, inpatient care management, analytics, project management office and supply chain to Optum. The deal is expected to save $1 billion over 10 years, the health system's president and CEO, Tim Dentry, told media outlets at the time.
- Northern Light employs about 10,000 people in Maine across 10 hospitals, a medical group, eight nursing homes and 37 primary care locations.