CentraCare Cuts 535 Jobs Amid Rising Costs and External Pressures
CentraCare has announced a significant reduction in its workforce, with hundreds of staff positions set to be cut. The move, affecting 535 employees across 44 locations, is primarily targeting administrative and support roles, with a smaller number of patient care positions also impacted.
The health system has attributed this decision to substantial external pressures, including soaring costs and reimbursement rates that fail to cover the cost of care. These pressures stem from various external actors, such as government regulators, insurance companies, pharmaceutical suppliers, and labor unions, influencing costs through regulatory compliance, reimbursement rates, drug pricing, and wage negotiations.
CentraCare is committed to supporting its affected employees, prioritizing internal placement opportunities wherever feasible. The final number of cuts will depend on how many impacted workers secure other positions within the organization.
CentraCare's workforce reduction, primarily in administrative and support roles, is a response to significant external pressures. The health system is actively working to place affected employees internally, with the final number of cuts contingent on successful internal transitions.
