For the first time in 40 years, the Owatonna Hospital will be experiencing a layoff of floor staff come November — specifically of nurses.
In a statement sent to the People’s Press, Allina Health — the parent company of the Owatonna Hospital — said they will be modifying the elective surgery schedule in Owatonna from five days a week to four days a week, starting Nov. 2, no longer having those surgeries on Fridays.
This in turn will result in eliminating five or fewer FTEs (full-time equivalent), including nurses. The surgery schedule change will not impact emergency surgeries, available seven days a week.
A spokesperson for Allina specifically noted that “one FTE does not equate to one employee.”
“This change is driven by a substantial decrease in surgical volumes following the departure of Mayo Clinic Health System-Owatonna physicians. Mayo Clinic Health System employs most providers who perform surgeries at Allina Health Owatonna Hospital,” the statement reads. “At the same time, we’re also reducing hours for our registered nurse care coordinator staff in the surgical unit to better align with schedules at our other Allina Health regional hospitals.”
The announcement is the latest of changes taking place at the local hospital, building on a growing concern from the community about uncertainty of the future of local health care, specifically with the relationship between Allina Health and Mayo Clinic Health System on the shared campus.
In June, Allina transitioned the hospitalist team from Mayo providers to Allina providers, with Owatonna Hospital President Whitney Johnson stating it was to create more consistency with care protocols in the Allina system.
Later in the summer, the hospital transitioned to Emergency Care Consultants in the Emergency Department, a contract they have with the group within eight other Allina hospitals in the area.
These two changes came after the hospital had made the decision in 2023 to close their on-site pharmacy and Sleep Center, as well as discontinuing their hospice services at Homestead Hospice House, effectively shuttering the facility.
Over the years, not including the closing of facilities and services, there have been other layoffs at Owatonna Hospital at the administration level, but this will be the first layoff of floor staff since 1984, when the hospital was owned by another entity.
Michelle Sorensen, the local chair for the labor union Minnesota Nurses Association, said the news came as a surprise to Allina nurses last week, when they were pulled into an “emergency meeting” and told of the schedule changes and upcoming layoffs — a meeting Sorensen said did not include MNA representation.
“These are key positions that you can’t just put a novice nurse in, a brand new graduate isn’t able to just come in and help with surgeries,” Sorensen said. “We have many senior nurses here with a major skill.”
Additionally, Sorensen said there will be a further hour reduction come Dec. 14, where the care management nurses (RNCCs) will have their flexible schedule revoked and will move to eight-hour shifts. Sorensen explained this differs from language detailed in their union contracts, but said there is more left to learn before going into greater detail.
“We are a non-striking hospital, that is written in our contract,” she said. “So this feels like a big thing. This is a real big thing.”
Allina representatives said the reduction in the RNCCs’ flexible schedule is not in addition, but the changes were including the five or fewer FTEs reductions.
In the Allina statement to the People’s Press, it reads that Allina will be “working with impacted employees” to help them understand how the change will affect their schedules and, if necessary, offer them support in “finding other job opportunities within Allina Health.”
In the past, Johnson had publicly stated the hospital is a business, and therefore they must be looking closely at their finances. Sorensen said this boils down to the “two-way street” in the relationship Allina has with Mayo.
“Mayo has not recruited and not back-filled vacant positions, which impacts our local hospital on how many patients we can see and how many we can serve — specifically in the surgery department where our team has been affected by at least 30%,” Sorensen said. “This is a huge impact to our community, because we’re not getting accurate and correct access to care. This is closing access to care.”
Dr. Jason Wray-Raabolle, the site lead physician at Mayo in Owatonna, said they are actively working to fill the position of a general surgeon who recently resigned, and that there has been no other changes to the Mayo staff from a personnel perspective.
Sorensen pointedly said she believes the local clinic’s frequent referrals to the Mayo Clinic in Rochester instead of the local hospital is the cause and effect of what she describes as a dwindling access to care, as well as the nursing layoffs coming.
In response, Wray-Raabolle said referrals are on a case-by-case basis.
“Our clinic staff carefully evaluates each patient’s case, taking into account their individual needs and preferences, to determine the most appropriate course of action,” he said. “In some instances, referrals to Mayo Clinic in Rochester may be necessary to provide specialized care or access to resources that aren’t available locally. We value our partnership with Allina Health in Owatonna and strive to collaborate to keep patients close to home whenever possible.”
Sorensen, however, is not convinced.
“It’s like a divorce. It used to work, and it used to work very well, but it’s not anymore,” she said. “Corporate greed is taking over rural health care.”
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