Marshfield Clinic Health System said Tuesday it plans to furlough about 3% of its workforce.
A spokesperson for the Marshfield, Wisconsin-based health system said in a statement the furloughs will occur mostly in non-patient-facing departments, including leadership roles. The spokesperson did not provide details on when the furloughs would take effect or how long they would last.
Related: Marshfield Clinic, Essentia Health scrap merger plan
The system employs 12,000 people; 3% of that would be 350 people. A furlough places employees on temporary non-paid leave or reduces their hours.
The spokesperson cited Marshfield's financial challenges, including rising supply and labor costs.
Marshfield reported a $133.6 million operating loss in the nine months ended Sept. 30, compared with a $92.6 million operating loss in the year-ago period. The 11-hospital system, which largely operates in rural communities in Wisconsin and northern Michigan, has reported operating losses since 2021.
The furlough announcement comes less than two weeks after Marshfield and Duluth, Minnesota-based Essentia Health called off their proposed merger, saying it was not the right path at the moment. The combination would have created a 25-hospital system with roughly $6 billion in annual revenue. In announcing the failed deal, Marshfield said it was exploring other partnership options with help from a third-party financial adviser.
"Providing healthcare in our rural geography comes with challenges, and it’s imperative we think differently," the Marshfield spokesperson said. "[It is] vital that we use our staffing resources as efficiently and effectively as possible to make sure resources are used where they are needed most and where they can have the greatest impact on patients."
