North Memorial Medical Center Cuts Jobs, Downsizes
North Memorial Health Care on Monday laid off an undisclosed number of staff members at the North Memorial Medical Center in Robbinsdale.
Spokeswoman Wendy Jerde confirmed in an e-mail Tuesday that the layoffs occurred, but declined to disclose the number of employees who were let go. She said that North Memorial Health Care is in the process of downsizing its namesake hospital and restructuring the system as a whole in order to position itself for “growth in an evolving health care environment.” Most of the staff positions that were cut did not involve direct patient care, she added.
“The changes that were made are part of a larger plan to ensure the entire North Memorial Health Care system is sustainable and successful as the organization continues to expand and strengthen its clinic and other outpatient services,” Jorde said.
Monday’s cuts represent North Memorial’s second round of layoffs within the past month.
In late December, North Memorial Health Care eliminated an unspecified number of leadership positions as part of its restructuring. In a memo sent at that time to North Memorial employees, CEO Larry Page warned that “non-leadership staffing reductions” would come in January. The health system also outlined a strategy that involved shifting resources away from the Robbinsdale hospital and focusing on outpatient clinics and diversifying into geriatric and end-of-life care.
In addition to operating its namesake hospital, North Memorial Health Care has a 75 percent stake in Maple Grove Hospital, runs about a dozen clinics, and operates one of the largest medical transport fleets of helicopters and ambulances in the country.
But its namesake hospital is the one feeling the brunt of the reorganization as it has been suffering from a decline in the number patients it treats, according to a Star Tribune report.
Admissions at the hospital were reportedly almost 9 percent below budget for the third quarter of 2011, while systemwide profits totaled $1.1 million in the quarter, below the budgeted $3.3 million.
North Memorial Health Care is the smallest health care system in the Twin Cities, with revenue of $670.4 million in 2011.