Sanford Health said Wednesday it is eliminating 96 leadership and administrative roles as part of the post-merger integration with Marshfield Clinic.
Layoffs are effective immediately for affected employees with director titles and above. Other cuts will be effective June 10. Affected employees are being offered severance pay, counseling, financial consulting and career transition services, a spokesperson said.
Related: Sanford Health closes merger with Marshfield Clinic Health System
"We are taking steps to bring the Marshfield organization into the Sanford structure," the spokesperson said. "This includes the realignment and consolidation of leadership and administrative roles and re-scoping of responsibilities to make sure we are working as effectively as possible."
Sanford is the latest system to make cuts to non-clinical roles. Several health systems, including Mass General Brigham, Baystate Health and Jefferson Health, eliminated hundreds of leadership and administrative roles this year, largely to shore up financial performance.
Some employees may be considered for other roles at Sanford. The system is also planning to add about 20 positions as it integrates Marshfield's Security Health Plan with Sanford Health Plan, the spokesperson said.
Sioux Falls, South Dakota-based Sanford merged with Marshfield Clinic in January, following a definitive agreement signed in October. The transaction formed a 56-hospital system across seven states with more than $10 billion in revenue, plus roughly 425,000 health plan members. Sanford committed to invest $500 million into Marshfield operations over the next five years, in addition to transitioning Marshfield to its electronic health record.
