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May 12, 2009
For the fourth time in six months, Park Nicollet Health Services is announcing layoffs.
The St. Louis Park-based health provider on Tuesday said it was laying off 240 employees. It also plans to close its Hopkins clinic this fall.
The new layoff announcement means that Park Nicollet has let go of about 700 workers since December — about 8.5 percent of its employees.
The hospital and clinic chain, like others, has seen its investments suffer and demand for its services decline because of the recession.
Park Nicollet CEO David Wessner said in a statement that work force reductions and other moves are meant to reduce the health provider’s reliance on investment income.
“We are being aggressive in shifting away from our reliance on investment earnings and focusing on earnings from operations,” Wessner said. “This will help keep Park Nicollet independent and strong in the new, post-recession medical marketplace.”
Park Nicollet said last month that it was laying off 233 workers and wouldn’t fill another 69 open positions. It also laid off 233 people in December, and 26 licensed practical nurses in March.
The present round of layoffs had to be done separately from others because it was different in nature, involving the closing of a clinic and other consolidations, said Park Nicollet spokesman Jeremiah Whitten.
On top of the layoff and clinic closure, Park Nicollet is consolidating mental health services from five sites to two, and consolidating some administration and support areas.
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