RiverView Health has announced a strategic reduction in force as part of an organizational effort to strengthen long-term sustainability, enhance operational efficiency, and continue delivering exceptional care to the communities it serves. The changes include discontinuing Home Care Services, internal restructuring of multiple support teams, and reducing clinic hours at RiverView Clinic – Red Lake Falls.
The decision follows a comprehensive review of operational performance and acknowledgment of the financial pressures facing rural health systems. “Following the passage of the One Big Beautiful Bill, the need to realign resources to support the sustainment of RiverView’s hospital and its hospital-based operations was crystal clear,” said Carrie Michalski, president and chief executive officer of RiverView Health “The bill created access problems and enrollment delays for our patients who rely on Medicaid, and federal policies were created that prevent Minnesota hospitals from obtaining additional matching funds that were approved by the Minnesota Legislature and would have provided a safety net for our rural hospital and the Medicaid patients we serve.”
Current Home Care clients will continue receiving services until Tuesday, March 31. The team is personally contacting each client to review care needs and assist with safe and seamless transitions to alternative providers.
Patients at the Red Lake Falls Clinic will be affected by the elimination of Friday clinic hours. Clinic time will remain available Monday through Thursday to meet patients’ care needs.
Restructuring is impacting 28 employees, roughly 15 full-time equivalents, according to a RiverView spokesperson.
RiverView Health noted that its employees are the heart of its organization, and it is deeply grateful for their service. When possible, its goal is to match impacted employees with open positions within its organization.
RiverView Health is providing a range of support resources to affected team members, including:
• Severance packages based on role and tenure
• Extended benefits options
• Access to employee assistance programs
• Opportunities to apply for open positions within RiverView Health that align with their skills and experience
The restructuring process will begin immediately, with transitions occurring over the coming weeks. The RiverView Health leadership team will continue communicating directly with employees and stakeholders as implementation moves forward.
“This was an extraordinarily difficult decision,” said Michalski. “In our Home Care operations, despite the commitment of our dedicated team, long‑standing challenges in state reimbursement for Minnesota Medical Assistance programs have created a persistent gap between the cost of providing care and the reimbursement received. For many years, RiverView Health has filled this gap to support our Home Care clients; however, those cash reserves have now been significantly depleted, and continuing to subsidize the agency is no longer sustainable.”
No other interruptions to patient care or community services are anticipated. Essential operations, clinical services and patient support functions will continue as normal.
“RiverView remains committed to our mission of delivering compassionate, patient-centered care,” said Michalski. “These changes, while difficult, will help ensure that we can continue serving the region for years to come.”
