RiverView Health 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 acknowledgement 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 & CEO 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.”
Commitment to Patients and Community
“This was an extraordinarily difficult decision,” added 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.”
Current Home Care clients will continue receiving services until March 31, 2026. Our team is personally contacting each client to review care needs and assist with safe and seamless transitions to alternative providers.
Patients at our Red Lake Falls Clinic will be minimally affected by the elimination of Friday clinic hours. Ample clinic time is available Monday through Thursday to meet our patients’ care needs.
Our employees are the heart of our organization, and we are deeply grateful for their service. When possible, our goal is to match impacted employees with open positions within our 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
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.”
The restructuring process will begin immediately, with transitions occurring over the coming weeks. Our leadership team will continue communicating directly with employees and stakeholders as implementation moves forward.
