Minneapolis-based M Health Fairview said it will reduce capacity at Bethesda Hospital to 50 beds and reduce its workforce by about 340 employees.
Bethesda, a long-term acute care hospital in St. Paul, Minn., currently has 89 staffed beds. The capacity reduction is expected to begin within the next few months.
"We are committed to having long-term acute care for the patients in our system, and any patients already in our care at Bethesda will not be discharged until medically ready," M Health Fairview said Dec. 6. "This change reflects the realities of the current reimbursement system and the necessity to prioritize our patients' needs."
M Health Fairview said it will reduce its workforce across the system by about 340 employees early next year, retraining and moving affected employees into open roles wherever possible.
The system will move operations from three sleep locations to nearby facilities in Eagan, Maplewood and Chisago City, Minn., and will close two retail pharmacies in Eden Prairie and Brooklyn Park, Minn.
The efforts are all part of M Health Fairview's plans to transform care delivery amid its financial issues. Last month, the system announced plans to cut a total of about 500 jobs across the system to address an expected $80 million shortfall next year. The system also revealed it was considering reducing or ending services at some hospitals.
M Health Fairview is a partnership of Minneapolis-based Fairview Health Services, University of Minnesota and University of Minnesota Physicians.
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