St. Charles Health System, Central Oregon's largest employer, announced on Tuesday, June 23 that it has laid off 22 people in leadership roles across the organization. An additional 23 vacant positions will remain unfilled as part of the same restructuring effort.
St. Charles operates hospitals in Bend, Redmond, Madras, and Prineville, employing more than 4,900 people across the system. The Madras campus serves as a critical access hospital for Jefferson County residents and much of the surrounding rural region.
What the Health System Says
According to St. Charles CEO Michael Hartke, the decision came after an evaluation of top leadership titles and was aimed at fairly balancing responsibilities across the system as it continues to grow.
"Changes are being made to fairly balance responsibilities for those in leadership positions across the health system and to structure the system for continued growth," Hartke said.
The layoffs came even as Hartke acknowledged rapid growth in the volume and scope of care St. Charles has provided across Central Oregon in recent years.
"I want to sincerely thank those impacted by these changes for their time and dedication to St. Charles, our patients and to each other," Hartke said.
No Direct Patient Care Affected
St. Charles emphasized that none of those laid off were providing direct patient care. Spokesperson Alandra Johnson confirmed that clinical staff were not part of the reduction.
Still, leadership cuts at a health system serving a rural county like Jefferson County can have downstream effects. Administrative and management positions often coordinate services, oversee community health partnerships, and manage staffing pipelines that affect how efficiently local patients receive care.
Not the First Time
St. Charles has navigated workforce reductions before. In 2022, the health system laid off 107 people — including two executives — and eliminated 76 vacancies in response to rising supply and equipment costs during a period of financial pressure for hospitals nationwide.
This latest round of cuts reflects a different dynamic: a system that has grown quickly and is now reshaping how its leadership structure matches the scale of its operations. What it means day-to-day for Madras-area patients is unclear, and the health system did not respond to follow-up questions about local impacts.
Jefferson County residents who have concerns about services at the Madras campus can contact St. Charles directly at the hospital's main line.