Winona (Minn.) Health will lay off 17 employees, eliminate 25 vacant positions and reduce some full-time positions to part-time in an effort to reduce costs, according to the Winona Daily News.
In addition to the job cuts, which will be permanent, the nonprofit provider will not fill several vacancies that will open due to planned retirements. The affected staff members will receive severance pay.
Health system officials attributed the staff reduction to declining reimbursement rates, demographic shifts and insurance pressures faced by patients.
"In addition to our ongoing organization-wide effort to decrease operational costs through continuous system improvement, we have determined the need to further reduce costs through the elimination of some positions," Winona Health CEO Rachelle Schultz said, according to the Winona Daily News. "These are among the most difficult decisions any organization can make, and they are made with heavy hearts."