Robbinsdale, Minn.-based North Memorial Health is laying off more than 100 employees in clinical and nonclinical roles due to ongoing financial challenges, according to a March 20 statement shared with Becker's.
Overall, 103 jobs will be eliminated, according to the Star Tribune. A spokesperson for North Memorial told Becker's the decisions were made with consideration of the system's "short-term viability and long-term sustainability of our mission." Where possible, affected employees will be eligible for re-employment through other open roles at the health system.
The workforce cuts affect several services across the two-hospital system and come shortly after new CEO Trevor Sawallish has sounded the alarm on North Memorial Health's financial situation.
Mr. Sawallish, who began as CEO on Feb. 9, told local news outlet CCX Media that unreimbursed care at its Robbinsdale, Minn., hospital has left it at "a breaking point."
The impact from unreimbursed and underreimbursed care at North Memorial Health Hospital is anticipated to reach $100 million by 2025, and Mr. Sawallish is seeking county and state assistance to help cover mounting losses, according to the report.
"Like so many in healthcare today, we have pretty profound financial challenges," Mr. Sawallish said during a March 18 city council meeting, according to CCX Media. "North finds itself at a pretty critical juncture."