Ascension Sells Off Last Michigan Hospitals

Compass Group USA, Inc. just filed WARN Act notices announcing 244 permanent layoffs of their support personnel working at:

Ascension Borgess Allegan Hospital; Allegan
Ascension Borgess-Pipp Hospital; Plainwell
Ascension Borgess-Lee Hospital; Dowagiac
Ascension Borgess Hospital; Kalamazoo
Ascension Borgess Health & Fitness Center; Kalamazoo

https://www.michigan.gov/leo/bureaus-agencies/wd/data-public-notices/warn-notices

The layoffs take effect on July 1, 2025.  No word on whom Beacon Health has hired to replace Compass and its workers.

The sale of Southwest Michigan’s Ascension Borgess hospitals to Beacon Health System closed today, July 1st:

https://www.mlive.com/news/kalamazoo/2025/07/ascension-borgess-hospitals-officially-sold-now-part-of-beacon-health-system.html

Ascension Borgess hospitals officially sold, now part of Beacon Health System
By Aya Miller | July 1, 2025

KALAMAZOO, MI -- Beacon Health System has officially acquired Southwest Michigan’s Ascension Borgess hospitals, Tuesday, July 1.

Beacon, an Indiana-based nonprofit, announced the plan to purchase in April. The acquisition includes four hospitals, 35 outpatient clinics and an ambulatory surgery center.

The acquired hospitals include:

Ascension Borgess Hospital in Kalamazoo
Ascension Borgess Allegan Hospital
Ascension Borgess-Lee Hospital in Dowagiac
Ascension Borgess-Pipp Hospital in Plainwell

“As a locally governed nonprofit organization, we remain committed to a community focus, driven by our mission to deliver outstanding care, inspire health and connect with heart,” said Kreg Gruber, Beacon’s chief executive officer.

Ascension approached Beacon last fall about an acquisition after Ascension facilities in the Detroit metro-area partnered with Henry Ford Health.

Beacon patients will have access to more specialists, enhanced resources and coordinated care through Beacon’s expanded system, the release said.

With the acquisition of Ascension’s Southwest Michigan facilities complete, 2,700 associates, including 259 providers, will transition from Ascension into the Beacon system.

Nurses with what’s now being called Beacon Kalamazoo (formerly Ascension Borgess Kalamazoo), previously expressed concerns they were unsure of whether their employment would transfer to Beacon. The Kalamazoo hospital is the largest of the four in the purchase.

Nurses weren’t given specific information about whether they meet requirements for their employment to transfer, said Lori Batzloff, a nurse at the Kalamazoo hospital and president of the local Michigan Nurses Association chapter.

Beacon Health was established in 2011 after a merger between Memorial Hospital of South Bend and Elkhart General Hospital. Since then, the nonprofit has grown “organically and opportunistically,” Gruber said.

Beacon has previously acquired facilities in Bremen, Indiana, and Three Rivers Health in Michigan.

Compass Group USA is laying off 262 employees across five Beacon Health System hospitals and facilities this summer.  This appears to be the Beacon Hospital support personnel layoffs originally scheduled for July of last year.  Beacon Health is bringing those services in house, a refreshing change from the corporate compartmentalization which has prevailed in the health care industry during this century:

https://www.woodtv.com/news/kalamazoo-county/beacon-health-contractor-laying-off-262-employees/

https://www.michigan.gov/leo/bureaus-agencies/wd/data-public-notices/warn-notices

Beacon Health contractor laying off 262 employees
By Madalyn Buursma - March 30, 2026

KALAMAZOO, Mich. (WOOD) — A Beacon Health contractor is laying off more than 250 West Michigan employees as the contract between the two organizations comes to an end.

Food service company Compass Group USA is laying off 262 employees across five Beacon Health System hospitals and facilities this summer, according to a notification filed with the state. The affected employees work at Beacon Allegan Hospital, Beacon Hospital and Beacon Health & Fitness Center in Kalamazoo, Beacon Lee Hospital in Dowagiac and Beacon Pipp Hospital in Plainwell.

$3.5M upgrade aims to make Beacon Kalamazoo emergency room faster
The group’s contracts are set to end on July 1, a support services spokesperson with Compass Group USA division TouchPoint said in a statement to News 8.

“We have been honored to serve patients, clinical caregivers, and guests at these Beacon Health hospitals and we will be working closely with the hospitals to ensure this transition is as smooth as possible,” the spokesperson said. “It is our understanding that there will be employment opportunities posted by Beacon Health for impacted associates to explore.”

Beacon Health System acquired the facilities from Ascension last year. At the time, Compass Group filed a WARN letter saying it would be laying off the employees, but Beacon and Compass ultimately created a new agreement to continue services.

Now, Beacon is bringing those services in house, a spokesperson for the health system said in a statement to News 8.

“As a locally owned, locally led health system, integrating these services allows us to better align with our mission, improve efficiency and reinvest resources where they matter most,” the spokesperson said. “Beacon will offer employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon’s standard hiring process. We are committed to our associates, our patients, and the communities we serve in southwest Michigan and across Beacon Health System.”