An Institution Now Announces Painful Layoffs in Minnesota

An institution now announces painful layoffs in Minnesota, resulting in the job loss of more than 100 workers and closure of an essential service.

A Red Wing nursing home taken under emergency management by the Minnesota Department of Health late last year is now set to close, resulting in around 120 layoffs.

MDH confirmed the impending closure of the Bay View Nursing and Rehabilitation Center on Wednesday, saying it’s the result of “significant financial and structural deficiencies”.

More than a dozen substantiated complaints have been filed with MDH against the facility in the past few years, with MDH assuming control of the facility in December after being granted temporary receivership by Ramsey County District Court.

It was one of ten nursing homes in Minnesota included on a federal list of facilities that required more supervision, with the Star Tribune reporting t was cited for 15 violations of standard in September that included unsanitary food preparation.

The facility struggled with staffing shortages and financial sustainability. At the time MDH took over in December, just 62 of its 121 beds were filled.

Now only 51 remain.

The 120 staff are expected to be laid off on or around July 22, per BMTN.

The facility will not close until all residents have been transferred to a new location, according to a WARN notice from MDH.

“Despite our best efforts, ongoings audits of Bay View’s financial circumstances have revealed a systemic lack of stability that cannot be overcome in order for operations to continue,” said MDH Health Regulation Division Director Maria King.

“Our primary goal is to ensure residents have access to safe and competent care. Unfortunately, the financial condition of Bay View combined with substantial physical plant repair needs have left us with no viable options.”

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Also Read: Retirees Will Now Receive More Money For Social Security

Other Economy News Today

Market News Today - An Institution Now Announces Painful Layoffs in Minnesota.
Market News Today – An Institution Now Announces Painful Layoffs in Minnesota.

Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.

First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.

Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.

That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.

The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.

US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.

Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.

Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.

“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”

Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.

The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.

While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”

Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”

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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia

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Market News Today - An Institution Now Announces Painful Layoffs in Minnesota.
Market News Today – An Institution Now Announces Painful Layoffs in Minnesota.

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