TOLEDO, Ohio — ProMedica is laying off over 250 employees as the Toledo-based healthcare system divests from skilled nursing facilities.
In a letter dated Jan. 9, ProMedica Chief Government Relations Officer Gary Cates said 262 employees will lose their jobs. 255 of those are remote employees working for nursing homes around the country and seven work at the ProMedica Summit Center on North Summit Street in downtown Toledo.
ProMedica announced in November it was transferring the real estate and management of all skilled nursing facilities beginning Dec. 19. Toledo-based Welltower took over the real estate.
The move is expected to alleviate continued operating losses within ProMedica's senior care division, which lost $87 million in the third quarter of 2022.
The 262 layoffs are permanent. It's possible some employees will be re-hired by the new operators.
"ProMedica Employment Services believes that the new operators will hire some of the employees listed in this notice, but their hiring needs are still developing at the time of this notice," Cates wrote in the letter. "All impacted employees have been notified of their layoff dates and have been notified that ProMedica Employment Services expects the layoffs to be permanent."
Layoffs are expected to take effect on March 10 for some, and April 1 for others.
ProMedica spokeswoman Tausha Moore issued a statement Thursday saying 8,000 employees are transitioning to new skilled nursing facility operators, but some positions are being eliminated. The layoffs include sales, marketing and administrative staff, and most of the impacted employees work from home.
"We empathize with the affected employees and are committed to assisting them through their transition," Moore said. "We are encouraging them to explore possible open positions with the new operators. ProMedica’s human resources department is also working closely with affected employees to provide support during this process."
ProMedica also laid off about 150 non-clinical employees last July as major financial challenges continued to mount.
The company reported a loss of $136.3 million in operating income in 2021. ProMedica then reported losses of $126 million for the first quarter of 2022 and $155 million for the second quarter.
On Oct. 31, ProMedica's previous CEO since 2009, Randy Oostra, retired. Oostra stepped down from his position as ProMedica's president in May, while retaining his position as CEO.
Multiple top executives were let go last year, including Chief Financial Officer Steve Kavanaugh.
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