OWATONNA, Minn. — Allina Health says it will soon be reducing hours for some of its medical-surgical staff members at Owatonna Hospital, but the Minnesota Nurses Association says the reductions are actually layoffs caused in part by the Mayo Clinic. An Allina Health spokesperson says the nonprofit is trimming the hospital's elective surgery schedule from five to four days a week, resulting in cuts to hours for its registered nurse care coordinator staff.
"This change is driven by a substantial decrease in surgical volumes following the departure of Mayo Clinic Health System-Owatonna physicians," the spokesperson said. "We are working with impacted employees to help them understand how this change will affect their schedules and, as appropriate, offer them support with finding other job opportunities within Allina Health." The hospital's union chairs say they're "particularly concerned by the role the Mayo Clinic is playing in this decision and the impact it will have on the Owatonna community," with Mayo handling the hospital's "clinical side" and Allina handling "acute care.
" The chairs say Mayo no longer supplies the hospital with surgeons, referring patients instead to its Rochester facilities, where most staff aren't union. "Once again, corporate healthcare executives at Mayo who have no connection to the community are making decisions that negatively affect nurses and patients," the chairs wrote in their statement released on Wednesday. In May 2023, Mayo successfully lobbied to have its 16 Minnesota hospitals exempt from the failed bipartisan Keeping Nurses at the Bedside Act , which sought to require committees with nurse representatives to be involved in decision-making regarding staffing levels.
Mayo threatened to renege on its pledge to provide $4 billion in state investments, leading Democratic Gov. Tim Walz to promise to veto the bill if it reached his desk. That same month, Allina and the Service Employees International Union (SEIU) averted a strike by 500 Twin Cities Allina workers.
Two months later, the nonprofit laid off more than 300 employees . Allina's tax filings showed the nonprofit lost $28 million in revenue in 2023 after five years of finishing in the black. Seventeen of its employees made more than $1 million last year.
The changes at Owatonna Hospital are set to begin on Nov. 2 Stephen Swanson is a web producer at CBS Minnesota. A 21-year WCCO-TV veteran, Stephen was a floor director for a decade before moving to the newsroom, where he focuses on general assignment reporting.
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