Marshfield Clinic to lay off 346

Marshfield (Wis.) Clinic Health System will lay off 346 employees as increasing labor  and supply costs and decreasing reimbursements continue to eat into its bottom line.

The layoffs equate to less than 3 percent of Marshfield's employee base, according to a March 1 news release. The system has also eliminated more than 500 unfilled positions to soften the blow to its workforce. 

"We are not immune to the immense pressure and unprecedented challenges gripping the healthcare industry in recent years, which has required us to identify ways to be more efficient and more resourceful," CEO Susan Turney, MD, said in the release. "Reducing staff is always painful. This is ultimately about preserving the long-term efficiency and sustainability of our organization."

Dr. Turney said Marshfield will support affected employees with resources and services to aid in their transition, including assistance searching for other roles within the system. 

Marshfield is an 11-hospital system with more than 12,000 employees in Wisconsin.

The system, which is exploring a merger with Duluth, Minn.-based Essentia Health, had its credit rating downgraded by Fitch in January due to operational challenges from labor pressure and disruption linked to the implementation of a new IT system.

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