Beacon Health Moves Services In-House, Ending Contract With Compass Group USA
KALAMAZOO, Mich. — Beacon Health System is bringing nutritional, environmental and transport services in-house at its Southwest Michigan hospitals, effective July 1, 2026. This decision will result in the layoff of 262 contract workers employed by TouchPoint Support Services, a division of Compass Group USA.
The layoffs will impact facilities in Kalamazoo, Allegan, Dowagiac and Plainwell, as well as the Beacon Health and Fitness Center in Kalamazoo. Beacon Health filed Worker Adjustment and Retraining Notification, or WARN, letters with the Michigan Department of Labor and Economic Opportunity earlier this month, officially announcing the workforce reductions.
What Jobs Are Affected
The following positions are being eliminated across Beacon Health System locations:
Beacon Kalamazoo — 222 Employees
- 91 housekeepers
- 73 involved in food and dining service, including cashiers, cooks, dishwashers and chefs
- 29 involved with patient transport
- 11 dietitians of all levels
- Five shift supervisors
- Three in retail
- 10 other positions
Beacon Allegan — 13 Employees
- Six housekeepers
- Seven in food and dining service
Beacon Dowagiac — 11 Employees
- Six in food and dining service
- One dietitian
- One shift supervisor
- Two housekeepers
- One janitor
Beacon Plainwell — 9 Employees
- Four in food and dining service
- Four housekeepers
- One director of environmental services
Beacon Health and Fitness Center, Kalamazoo — 7 Employees
- Six housekeepers
- One shift supervisor
Beacon Health's Statement on the Layoffs
Elizabeth Long, Beacon Health System spokesperson for Southwest Michigan, said the company extended its agreement with TouchPoint for one year but is now moving forward with bringing these services in-house.
"As a locally-owned, locally-led system, integrating these services allows us to better align with our mission, improve efficiency and reinvest resources when they matter most," Long said. "Beacon will offer employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon's standard hiring process."
Long confirmed that the exact number of each position that will be available and recreated by Beacon is not known at this time. Beacon Health will offer employment opportunities through its standard hiring process.
Background: Contract With Compass Group USA
Compass Group USA filed a similar WARN notice with the state last May, when a series of WARN notices announced the layoff of 244 employees prior to Beacon Health System acquiring the Ascension health care system. Those layoffs never occurred, according to Long.
Instead, Beacon Health worked with TouchPoint and Compass Group USA to establish a new service agreement prior to the July 1, 2025 acquisition. Long said that agreement averted any layoffs and no workforce reductions occurred at that time.
The acquisition included hospitals in Kalamazoo, Dowagiac, Plainwell and Allegan, 35 outpatient clinics and an ambulatory surgery center.
Workers Must Reapply For Positions
The 262 employees, who work for TouchPoint Support Services and parent group Compass Group USA, are being laid off as Beacon prepares to bring nutritional, environmental and transport services in-house in Southwest Michigan.
The layoffs will take effect on July 1, the same day that Beacon's contract with TouchPoint ends. Workers must reapply for their positions if they wish to keep them.
Beacon's Mission Statement
Long emphasized Beacon Health's commitment to being a locally-owned, locally-led health system.
"While TouchPoint had communicated the potential workforce reductions in advance of the acquisition, that agreement averted any layoffs and no workforce reductions occurred then," Long said.
The decision to bring services in-house represents Beacon Health's strategy to integrate operations across its four hospitals and health and fitness center in Kalamazoo.
Sources
- 262 Beacon Health support staff face layoffs as contract ends, must reapply for jobs - https://www.mlive.com/news/kalamazoo/2026/03/262-beacon-support-staff-face-layoffs-as-contract-ends-must-reapply-for-jobs.html
- Contractor lays off 250+ employed at various Beacon Health facilities - https://wwmt.com/news/local/beacon-layoffs-compass-group-usa-inc-workers-lose-jobs-262-kalamazoo-allegan-plainwell-dowagiac-health-hospital-wwmt
- Beacon Health brings 280 non-clinical positions in-house - https://crainsgrandrapids.com/health-care/cgr-beacon-health-staff-20260326/