Hundreds of Beacon Health Support Staff Will Lose Jobs When Contract Ends July 1
*KALAMAZOO, Mich.* — More than 250 contracted workers employed at various Beacon Health locations across Southwest Michigan will lose their jobs come July 1, according to official reports from the Michigan Department of Labor and Economic Opportunity.
Compass Group USA, Inc. is laying off 262 workers employed at facilities owned by Beacon Health System, including hospitals in Kalamazoo, Allegan, Dowagiac, and Plainwell, as well as the Beacon Health & Fitness Center in Kalamazoo.
Beacon Health System is bringing nutritional, environmental and transport services in-house at Beacon Kalamazoo, Beacon Allegan, Beacon Dowagiac and Beacon Plainwell hospitals, as well as Beacon Health & Fitness Kalamazoo, effective July 1, 2026, upon conclusion of an agreement with Georgia-based TouchPoint Support Services, a division of Compass Group USA.
The layoffs, which have been in the works for months, impact a wide range of essential hospital support positions. According to the Worker Adjustment and Retraining Notification (WARN) letters filed with state authorities, affected workers include food service workers, cooks, patient services staff, retail managers, dietitians, housekeepers, administrative assistants, custodians, and supervisors.
Detailed Breakdown of Positions Being Eliminated
The WARN notices provide a comprehensive breakdown of positions being eliminated at each facility:
Beacon Kalamazoo — 222 Employees
- 91 housekeepers
- 73 employees in food and dining service, including cashiers, cooks, dishwashers, and chefs
- 29 employees involved with patient transport
- 11 dietitians of all levels
- 5 shift supervisors
- 3 retail employees
- 10 other positions
Beacon Allegan — 13 Employees
- 6 housekeepers
- 7 employees in food and dining service
Beacon Dowagiac — 11 Employees
- 6 employees in food and dining service
- 1 dietitian
- 1 shift supervisor
- 2 housekeepers
- 1 janitor
Beacon Plainwell — 9 Employees
- 4 employees in food and dining service
- 4 housekeepers
- 1 director of environmental services
Beacon Health & Fitness Center, Kalamazoo — 7 Employees
- 6 housekeepers
- 1 shift supervisor
Beacon Brings Services In-House as Locally-Owned System
Beacon Health System, a locally-owned and locally-led health system, is making the strategic decision to integrate these essential services directly under its own operations rather than continuing the contract with Compass Group USA.
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.
Elizabeth Long, Beacon Health System spokesperson for Southwest Michigan, provided context on the situation. She noted that TouchPoint Support Services had previously communicated potential workforce reductions before Beacon's acquisition of the Ascension healthcare system in July 2025.
While TouchPoint had communicated the potential workforce reductions in advance of the acquisition, that agreement averted any layoffs and no workforce reductions occurred then.
The Beacon acquisition included hospitals in Kalamazoo, Dowagiac, Plainwell, and Allegan, along with 35 outpatient clinics and an ambulatory surgery center. Beacon extended the existing agreement with TouchPoint for one year, but has now decided to bring these services in-house.
Beacon will offer employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon's standard hiring process.
However, Long clarified that the exact number of positions that will be available and recreated by Beacon is not yet known.
The following positions were highlighted by the WARN notices as being eliminated by Compass Group USA. The exact number of each position that will be available and recreated by Beacon is not known at this time, Long said.
Previous Layoff Concerns Never Materialized
This is not the first time WARN notices regarding Beacon Health and Compass Group have surfaced. Compass Group USA filed a similar notice with the state last May, when Beacon Health System was acquiring the Ascension healthcare system.
Those earlier WARN notices announced the layoff of 244 employees prior to the Beacon acquisition. However, those layoffs never occurred, confirmed Elizabeth Long. Instead, Beacon Health worked with TouchPoint and Compass Group USA to establish a new service agreement prior to the July 1, 2025 acquisition.
The current situation represents a different scenario, with Beacon Health now choosing to end the contract entirely and bring services under its own control.
What This Means for Workers
The 262 workers facing layoffs will need to reapply for their positions if they wish to keep working at Beacon Health facilities. Beacon Health has stated it will offer employment opportunities in these service areas, but candidates must go through the standard hiring process.
This means that many workers who have been employed at these facilities for years may need to compete against other applicants for the same positions, even though they currently hold those jobs.
The impact extends across multiple communities in Southwest Michigan, with significant layoffs at facilities serving patients in Kalamazoo, Allegan, Dowagiac, and Plainwell.
Community Impact
These layoffs represent a significant shift in how Beacon Health manages its operations. The decision to bring services in-house comes as part of Beacon's strategy as a locally-owned health system.
The positions being eliminated span critical areas including nutrition, environmental services, and patient transport — all essential components of hospital operations. While Beacon Health states this move will improve efficiency and allow for better alignment with their mission, the immediate impact is the displacement of 262 workers who currently serve these facilities.
As July 1 approaches, hundreds of workers across Southwest Michigan will need to navigate this transition, with Beacon Health encouraging current employees to apply for positions through their standard hiring process.
Sources