Flint, Mich.-based Insight Health System and former employees reached an agreement April 28 in a lawsuit over its layoffs.
Five things to know:
1. David McCullough, a laid-off employee, filed the lawsuit April 1, 2025, against Insight Foundation of Hillside, Insight Foundation of Trumbull and Firdaus Foundation. The complaint, filed in the U.S. District Court for the Northern District of Ohio, alleges employees were terminated without cause as part of a mass layoff ordered by the defendants on or about March 28, 2025, and were not provided 60 days advance written notice of their terminations as required by the Worker Adjustment and Retraining Notification Act.
2. The complaint alleges the defendants terminated at least 100 employees at the facilities on or about March 28, 2025, but told them they were being temporarily furloughed.
Both hospitals — registered to do business as Insight Hospital and Medical Center Hillside and Insight Hospital and Medical Center Trumbull, both in Warren, Ohio, acted as a single employer under the WARN Act, according to the complaint.
3. Both hospitals halted operations March 27, 2025, related to ongoing bankruptcy issues tied to their former owner, Dallas-based Steward Health Care. The halt came shortly after the hospitals paused inpatient and outpatient services and furloughed an unspecified number of employees March 24. The Trumbull hospital reopened Oct. 14 but suspended operations again in November after the Ohio Department of Health revoked its state license. Insight purchased the facilities from Steward in November 2024.
4. The lawsuit alleges violations of the WARN Act and the Ohio Revised Code and sought class-action status. Mr. McCullough sought to recover damages for himself and other affected employees in the amount of 60 days’ pay and Employee Retirement Income Security Act benefits, repayment of contributions deducted from wages for fringe benefits that the defendants allegedly retained, and compensation for accrued but unpaid vacation time. The complaint also sought injunctive relief to prevent the defendants from dissolving their corporate entities or dissipating assets.
5. A mediation conference was held April 28 before U.S. Magistrate Judge James Gwin, during which the parties reached an agreement, according to court documents reviewed by Becker’s. The parties will make the appropriate filings, and the court will retain jurisdiction to enforce the terms of the settlement.
The plaintiffs, defendants and unions involved in the case shared the following joint statement with Becker’s: “Through mediation, we reached a preliminary settlement resolving the WARN related litigation, grievances and other claims. We are now working towards memorializing the resolution terms and will be reaching out to affected individuals in the coming months.”
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