St. Charles Health System, Central Oregon’s largest employer, laid off 22 people in leadership positions on Tuesday, June 23, and announced it will leave 23 other vacant positions unfilled. The cuts came as the nonprofit health system said it is restructuring its leadership to better reflect how rapidly it has grown in recent years.
St. Charles operates hospitals in Bend, Redmond, Madras, and Prineville, employing more than 4,900 people across the region. The layoffs affect the St. Charles system broadly, though the company did not specify which campuses or departments were most impacted.
What the Health System Said
CEO Michael Hartke said the changes are intended to fairly distribute responsibility among leadership and set the organization up for long-term growth.
“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 in a statement.
St. Charles emphasized that no one who was laid off was providing direct patient care. Spokesperson Alandra Johnson confirmed that clinical services at all campuses remain unaffected.
Despite that reassurance, Hartke acknowledged the difficulty of the decision.
“I want to sincerely thank those impacted by these changes for their time and dedication to St. Charles, our patients and to each other,” he said.
History of Layoffs
This is not the first time St. Charles has cut positions in response to financial or structural pressures. In 2022, the health system eliminated 107 jobs — including two executives — and left 76 vacancies unfilled after facing what it described at the time as skyrocketing supply and equipment costs.
The health system did not answer follow-up questions about severance, which positions specifically were cut, or when those roles might be refilled.
Local Impact
St. Charles Madras is a critical piece of Jefferson County’s healthcare infrastructure, serving residents across a large, rural area with limited access to alternative providers. Any changes to leadership at the Madras campus have the potential to affect how services are delivered, even if patient-facing staff are not directly impacted.
The layoffs come at a time of significant challenge for rural hospital systems nationwide, as reimbursement rates, workforce shortages, and federal funding pressures squeeze margins even at larger regional health systems like St. Charles.
Residents with questions about services at St. Charles Madras can contact the hospital directly at 541-475-3882.