Business & Tech

CentraCare To Lay Off 535 Workers At 44 Minnesota Locations

The largest rural health system in Minnesota says rising costs and shrinking reimbursements are behind the 535 planned layoffs.

CentraCare will lay off 535 employees at 44 locations across Minnesota, the St. Cloud-based health system announced this week.
CentraCare will lay off 535 employees at 44 locations across Minnesota, the St. Cloud-based health system announced this week. (Google Streetview)

ST. CLOUD, MN — CentraCare will lay off 535 employees at 44 locations across Minnesota, the St. Cloud-based health system announced this week.

"CentraCare is responding to significant external pressures including rising costs and reimbursement rates that no longer cover the true cost of care," the system said in a statement.

"To safeguard the organization’s stability and to continue delivering high-quality care, we have made difficult but necessary staffing adjustments."

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About 70 percent of the positions being cut are administrative and support roles, while 30 percent are patient care roles, according to CentraCare. The final number of people affected may change as employees apply for and transition into more than 350 open positions within the system.

CentraCare is the largest health system between Minneapolis and the Dakotas, serving a population of about 800,000 people across 30,000 square miles. In 2024, the system saw 356,000 unique patients, handled 537,000 inpatient and outpatient admissions, performed 57,000 surgeries, and recorded 128,000 emergency room visits.

Find out what's happening in Across Minnesotafor free with the latest updates from Patch.

It employs more than 11,600 people, including over 950 physicians and advanced practice providers, and has more than 975 volunteers.

"While difficult, making these adjustments now will strengthen CentraCare’s foundation to remain a trusted healthcare partner," the statement continued. "We look forward to continuing to serve our communities with compassion and excellence for many years to come."

CentraCare, which was formed in 1995, now operates nine hospitals in St. Cloud, Benson, Long Prairie, Melrose, Monticello, Paynesville, Redwood Falls, Sauk Centre and Willmar, as well as more than 30 clinics across the region.

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