University of Michigan Health-Sparrow is negotiating to outsource approximately 400 environmental services and food and nutrition jobs at its Lansing, Mich., hospital, the health system confirmed to Becker’s.
UM Health-Sparrow has signed letters of intent with Xanitos and TouchPoint Support Services to manage environmental services and food and nutrition services, respectively, at its Lansing location, a spokesperson said. The system further noted that the partnerships remain in the evaluation stage.
In a statement shared with Becker’s, UM Health-Sparrow cited financial headwinds that it anticipates from Medicare and Medicaid reimbursement challenges over the next several years. Moreover, it said the vendors’ scale could secure more competitive pricing and noted that both companies already serve UM Health-West in the Grand Rapids, Mich., area.
If contracts are signed, salaried leaders could transition to the new companies Aug. 1 and non-salaried team members Sept. 1, the spokesperson told Becker’s. Margaret Dimond, regional president of University of Michigan Health, held listening sessions with affected employees this week, and the vendors are scheduled to meet workers on campus next week.
UAW Local 4911, which represents about 2,400 UM Health-Sparrow employees, voiced opposition to the move, the Lansing State Journal reported June 3. Local President Kim Wheeler told the newspaper the affected workers earn roughly $16 to $25 an hour and face uncertainty over pay, benefits and job security. Xanitos is based in Pennsylvania and TouchPoint in Georgia, according to the report.
University of Michigan Health-Sparrow, part of University of Michigan Health, employs about 10,000 team members and operates hospitals in Lansing, Carson City, Charlotte, Ionia and St. Johns, Mich.
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