Another Iowa Medical Group Plans Layoffs in February

A series of health centers and hospitals across the Tri-State area have been closing up shop or laying off workers. Now, according to the Iowa WARN notification list, another Iowa medical group will join this shocking trend as 67 workers will soon be laid off.

Great River Health, a longstanding regional healthcare system based in West Burlington, Iowa, is currently grappling with financial challenges that have led to planned layoffs across its network. The organization, which has served southeast Iowa, west-central Illinois, and northeast Missouri for over 125 years, recently announced significant staff reductions affecting Southeast Iowa Regional Medical Center in West Burlington and Fort Madison. The move comes in the wake of a reported $40 million loss in the 2022 fiscal year and service cutbacks implemented in August of that same year.

According to an Iowa Workforce Development WARN notice, Great River Health plans to lay off a total of 67 employees, with 56 individuals impacted at the West Burlington location and an additional 11 at the Fort Madison facility. These layoffs are scheduled to take effect on February 23rd, 2024, giving affected employees a window of time to make necessary adjustments.

The financial struggles faced by Great River Health, as evidenced by the substantial loss reported in the 2022 fiscal year, highlight the broader challenges that healthcare institutions often confront. Factors such as changes in reimbursement policies, shifts in healthcare demand, and financial mismanagement can contribute to the need for restructuring and staff reductions.

Great River Health encompasses Southeast Iowa Regional Medical Center in Fort Madison and West Burlington, along with Henry County Health Center in Mount Pleasant. The organization also operates clinics in various locations, including Burlington, Keokuk, Mediapolis, New London, and others. The layoffs will impact both Fort Madison and West Burlington locations, impacting acute, rehabilitative, skilled, and long-term care services.

Get our free mobile app

The repercussions of these layoffs extend beyond the affected employees. Another failing health service raises even more concerns about the impact on healthcare access for rural communities as a whole. Additionally, with more than 30 clinics providing primary, specialty, convenient, and urgent care, Great River Health has been a cornerstone of healthcare in the region. The layoffs may lead to some disruptions in healthcare services and a potential strain on the remaining workforce.

The layoffs at Great River Health, and across much of the US, have been due to several factors:

• Financial Loses.
• Service Cutbacks.
• Adapting to changes in healthcare.
• Efficiency measures and mitigating redundant jobs.
• Reorganization or restructuring under new ownership.
• Impact of external factors; pandemic funding/patient demographics.

As another health organization moves forward with cuts, stakeholders, including local residents and healthcare professionals, will be closely monitoring developments to ensure that the region continues to have access to the vital healthcare services.