Beacon Brings Nutritional, Environmental and Transport Services In-House

*KALAMAZOO, Mich.* — More than 260 contracted workers employed at various Beacon Health locations across Southwest Michigan will lose their jobs come July 1, according to a report from the Michigan Department of Labor and Economic Opportunity (LEO).

Compass Group USA, Inc. is laying off 262 workers employed at the following facilities owned by Beacon:

  • Beacon Allegan
  • Beacon Health & Fitness Center in Kalamazoo
  • Beacon Kalamazoo
  • Beacon Dowagiac
  • Beacon Plainwell

"Our veterans deserve the best care available and that can't happen unless we invest and make improvements to the facilities where our veterans receive care," said Congressman Bill Huizenga.

LEO received the Worker Adjustment and Retraining Notification (WARN) letters from Compass Group USA, Inc. earlier this month.

Types of Jobs Impacted

The layoffs affect a wide range of essential hospital services including food service workers, cooks, patient services and retail managers, dieticians, housekeepers, administrative assistants, custodians, supervisors, and more.

A spokesperson with Beacon Health System sent News Channel 3 the following statement Monday afternoon:

"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 Center in Kalamazoo. 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."

Beacon Encourages Current Employees to Apply

Beacon Health System is offering employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon's standard hiring process.

The exact number of each position that will be available and recreated by Beacon is not known at this time, but Beacon Health System spokesperson Elizabeth Long said the system will work to recreate positions where possible.

"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.

Timeline and Impact

The layoffs will take effect on July 1, the same day that Beacon's contract with TouchPoint Support Services ends.

The WARN notices detailed the specific positions being eliminated at each facility:

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 & Fitness Center, Kalamazoo: 7 employees

  • Six housekeepers
  • One shift supervisor

Previous Layoff Notice

Compass Group USA filed a similar 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, however, 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 acquisition included hospitals in Kalamazoo, Dowagiac, Plainwell and Allegan, 35 outpatient clinics and an ambulatory surgery center.

"Beacon will offer employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon's standard hiring process," Long said.

Locally-Owned System Integrates Services

Beacon Health System, a locally-owned health care provider serving Southwest Michigan, has been acquiring other health systems in recent years. The Beacon Kalamazoo location, formerly Ascension Borgess Hospital, is one of the facilities affected by these layoffs.

The integration of services allows Beacon to maintain control over key operations while ensuring continued support for patients and staff across its network of hospitals and clinics.