Toledo, Ohio-based ProMedica plans to lay off 262 employees, a move tied to its exit from a skilled-nursing facility joint venture late last year.
ProMedica announced in November its exit from a joint venture with Welltower for 147 skilled nursing assets, effective in December. ProMedica had held a 15 percent interest in the JV, and made the decision to divest after ongoing operating losses in its senior care division.
The health system alerted state officials of pending layoffs in a Jan. 9 letter, noting that it is "reducing the regional and corporate support staff that served these facilities." The layoffs will take effect between March 10 and April 1.
ProMedica noted that it believes the new SNF operators will hire some of the affected employees, "but their hiring needs are still developing at the time of this notice."
"While more than 8,000 ProMedica employees have already transitioned or are in the process of transitioning to new skilled nursing facility operators, we expect that some positions will be eliminated due to the transition," ProMedica spokesperson Tausha Moore told Becker’s Jan. 13. "The majority of the affected positions provide a range of support services for the skilled nursing facilities, including sales, marketing and administrative."
Of the 262 employees facing layoffs, 255 of them work remotely from across the U.S.