CentraCare to lay off 535 workers, 30% in patient care roles

St. Cloud, Minn.-based CentraCare is laying off 535 employees across the health system in response to “significant external pressures” including rising costs and reimbursements rates “that no longer cover the true cost of care,” a spokesperson for the health system said in a statement shared with Becker’s. 

The layoffs affect 44 locations and represent nearly 5% of CentraCare’s workforce of more than 11,500 employees

Roughly 70% of the eliminated roles are administrative and support positions, while 30% are patient care roles. The health system did not respond to Becker’s inquiry about which specific patient-facing positions are affected

The final number of affected employees may change as some staff apply for and transition into more than 350 open positions within CentraCare, according to the spokesperson.

“To safeguard the organization’s stability and to continue delivering high-quality care, we have made difficult but necessary staffing adjustments,” CentraCare said in a statement. “While difficult, making these adjustments now will strengthen CentraCare’s foundation to remain a trusted healthcare partner.”

For the fiscal year ending June 30, 2024, CentraCare reported a $19.8 million operating loss on $2 billion in revenues, down from a $6.1 million operating gain on $1.9 billion in revenue in the previous fiscal year. 

CentraCare has 10 hospitals and more than 30 clinics in central and southwest Minnesota and employs more than 11,500 people, according to its website.