Questions swirling over sudden closure of Rainbow Health

Questions swirling over sudden closure of Rainbow Health

Questions swirling over sudden closure of Rainbow Health

Questions are swirling over the sudden closure of a long-standing nonprofit serving the LGBTQ community across Minnesota.

Minneapolis-based Rainbow Health posted on Facebook late Thursday night: “With a heavy heart, we announce the closure of Rainbow Health. Due to insurmountable financial challenges, we can no longer sustain our operations.”

The organization offers a variety of services, from case management for HIV patients to housing assistance to LGBTQ-focused counseling.

Employees told 5 EYEWITNESS NEWS there was an “emergency meeting” Thursday afternoon where the board told them Rainbow Health would be shutting down by the end of the day.

“I’m not just angry because I lost my paycheck; I’m angry because my clients, they matter to me!” said Uzoamaka McLaughlin, who worked as a case manager at Rainbow Health for three years. “We are lost. No information, nothing.”

When 5 EYEWITNESS NEWS stopped by Rainbow Health’s downtown Minneapolis office building Friday afternoon, the lights were off and a crowd of confused employees was inside gathering belongings.

“How the hell did this happen? That is the question right now. How did this happen?” said Iola Kostrzewski, who worked as the greater Minnesota HIV provider engagement coordinator for Rainbow Health. “There’s a right way to shut down a nonprofit and that did not happen here.”

She worries clients will be put on waiting lists with other providers and likely go without services.

“When it was asked on the meeting, ‘What do we tell our clients?’ there was not an answer,” Kostrzewski said. “There are other agencies within the Twin Cities but there’s only so much capacity, so we don’t know. As of right now, we don’t know.”

“It’s scary. It’s destabilizing. It’s like, what do you do?” said Lou Bialon-Crane, who has gone to therapy at Rainbow Health for almost four years. “The idea that these services are going away or we don’t know what they’re going to look like, it’s really scary and it’s really dangerous.”

The Rainbow Health Workers Union represented by SEIU Healthcare MN & IA is demanding transparency from the board.

The Rainbow Health Workers Coordinating Committee, a group representing unionized staff from various teams at Rainbow Health, 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.”

In a section of Rainbow Health’s website entitled ‘Financials’ that has now been removed, the organization previously posted: “It’s important to us that the community be able to check our work and ensure we are good stewards of precious resources.”

However, that same page only posted annual reports until 2019.

Other nonprofits across the state are now scrambling to fill the gaps left by Rainbow Health.

The Aliveness Project provided this statement to 5 EYEWITNESS NEWS:

“The Aliveness Project is deeply saddened by Rainbow Health’s sudden, unexpected closure. Rainbow Health has provided a vital role in the lives of our members and the LGBTQ+ community. Our hearts go out to the 60 staff members and thousands of clients affected by this loss. We are swiftly working with community partners and funders to ensure continuity of services and minimize the negative impact on our members. Our community will need extra support and care today and in the coming weeks. We are doing everything possible to ensure members continue receiving important services previously provided by the dedicated staff of Rainbow Health. We will miss Rainbow Health and their partnership to end HIV in Minnesota. We want to take a moment to thank the staff and supporters of Rainbow. Our community has always been brighter one because of this wonderful organization. Please take care of yourself and each other. Despite the challenges we face, we firmly believe we will emerge a stronger community. Thank you for your dedication, resilience, and commitment to care.”

Clare Housing also provided this statement:

“We are very saddened to hear of the closure of Rainbow Health but are comforted by the fact that the Twin Cities has a robust community of organizations that serve people living with HIV and the LGBTQ+ community. Family Tree Clinic, Rural AIDS Action Network, and the Aliveness Project have all shared updates that they will be working with their partners to ensure continuation of care. Native American Community Clinic, Positive Care Clinic at HCMC, Red Door Clinic, Reclaim!, and Youth and Aids Project are additional local organizations who have the expertise to serve previous Rainbow Health clients. Clare Housing is focused on affordable, supportive housing for people living with HIV. We partner with many of the organizations named above and encourage community members to reach out to them for health care coordination and resources.”

The Rainbow Health board of directors also posted a statement to their website, along with some FAQs about continued care.