Rainbow Health nonprofit abruptly closes, leaving dozens of employees without a job
Location of the former Rainbow Health nonprofit in Minneapolis (KSTP)
Dozens of employees at a Minneapolis-based health care nonprofit learned they were suddenly out of a job on Thursday.
Workers at Rainbow Health were told by their Board that the nonprofit was closing just days after the CEO resigned following a unanimous “no confidence” vote by the Rainbow Health Workers Union represented by SEIU Healthcare Minnesota & Iowa.
Rainbow Health’s website states they “offer in-person and telehealth options for mental health and substance use support for people who are LGBTQ+ and people living with HIV.”
According to the union, employees received an email Thursday morning about an emergency all-staff meeting during which the Board chair told them the organization was closing, effective immediately.
In a statement posted to Instagram, Rainbow Health said “insurmountable financial challenges” led it to cease operations and that it is working to help patients transition to new health care providers.
“Again, we deeply regret this and thank you for understanding during this challenging time,” Rainbow Health wrote. “Your health and well-being remain our top priority, and we are committed to ensuring you continue receiving the care you need.”
Around 60 union-represented workers, along with additional managers, were impacted by the sudden closure, despite language in the workers’ union contract requires 30 days advance notice of layoff to union-represented employees.
The Rainbow Health Workers Coordinating Committee, which represents unionized staff from multiple Rainbow Health teams, released the following statement:
“We are shocked, saddened and angered by this news, both as staff dedicated to Rainbow Health’s mission and even more so for our clients and community. We are left with many huge questions: How could this massive decision come with no warning? What happened to the funding that the organization has been receiving? What was happening with leadership and the Board that got us to this point? Why wasn’t the union made aware of how dire of a situation the budget was in, particularly after our many demands for financial transparency and a seat at the table to help solve problems? What steps are being taken to ensure that our clients continue to receive essential services from other organizations or providers? How do you justify the lack of notice while knowing the harm this will cause to our highly marginalized clients that depend on our professional support? As we demand answers to these questions from the organization’s Board of Directors, we are united and will keep fighting for our rights as workers and to find ways to ensure continuity of client care for the community members we serve.”
Rainbow Health Workers Coordinating Committee
The union said it will be supporting workers in the enforcement of their contract and gathering answers as to what led to the nonprofit’s closure.