Dozens of employees at Rainbow Health, a Minneapolis-based healthcare nonprofit, found themselves abruptly out of work on Thursday.
The nonprofit’s Board informed workers of the closure, just days after the CEO resigned. This resignation followed a unanimous “no confidence” vote by the Rainbow Health Workers Union, represented by SEIU Healthcare Minnesota & Iowa.
Rainbow Health provided both in-person and telehealth options for mental health and substance use support, specifically catering to the LGBTQ+ community and individuals living with HIV.
The union reported that employees received an email on Thursday morning about an emergency all-staff meeting. During this meeting, the Board chair announced the organization’s immediate closure.
In a statement on Instagram, Rainbow Health cited “insurmountable financial challenges” as the reason for ceasing operations. The organization is working to help patients transition to new healthcare 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.”
Approximately 60 union-represented workers, along with additional managers, were affected by the sudden closure. The union’s contract stipulates a 30-day advance notice of layoff for union-represented employees, which was not honored in this case.
The union has pledged to support workers in enforcing their contract and to seek answers regarding the nonprofit’s abrupt shutdown
