Essentia Health to permanently layoff nearly 900 employees

FARGO, N.D.–Essentia Health has announced their decision to move forward with permanent layoffs due to the COVID-19 pandemic.

The Health organization says it has experienced operational losses nearing $100 million since the beginning of March.

Various measures have been taken to attempt to offset the decline in revenue including placing employees on administrative leave, flexing hours, reducing physician and executive leader compensation, restructuring and eliminating leadership roles, limiting capital expenditures and reducing services and discretionary spending.

Essentia Health CEO David C. Herman, MD says, “Despite our best efforts, the many cost-reduction measures we’ve taken over the last several weeks are not sufficient to preserve our mission and the health of the organization. This has prompted our leadership team to carefully consider the most difficult decision we’ve faced since I joined Essentia five years ago and move forward with permanent layoffs.”

According to Essentia Health, about 900 employees or six percent of the workforce will be affected by the layoffs. This does not include the 850 employees already on administrative leave through July 31.

Essentia Health is just one of the many Minnesota hospitals and health systems expected to lost almost $3 billion within the first three months of responding to COVID-19.

Categories: Coronavirus, Coronavirus-MN, Coronavirus-ND, Health, Local News