Morrison Healthcare, an Atlanta, Ga.-based food service provider for healthcare facilities, will next month end operations at two northeast Indiana hospitals. In a notice to the state, the company said it lost the food service contract for the hospitals, and 126 employees will be affected.
The hospitals in question are Lutheran Hospital in Fort Wayne and Lutheran Kosciusko Hospital in Warsaw, both of which are part of Lutheran Health Network.
Morrison says the hourly and salaried workers at the hospital will be laid off beginning Jan. 25, but the company anticipates the affected employees will not be out of work for long.
“We expect this action will be permanent, and we reasonably anticipate that most employees will be hired by the new vendor,” the company said in the notice dated Dec. 22.
The company did not state who the new vendor at the hospitals will be.
The employees are not represented by a union and do not have any bumping rights. The company says the affected workers have been notified of the move.
Morrison filed the notice under the Federal Worker Adjustment and Retraining Notification (WARN) Act, which requires advanced notice of mass layoffs and plant closings.
Morrison Healthcare serves more than 975 hospitals and healthcare systems across the country, according to its website. The company is a subsidiary of Charlotte, N.C.-based food service company Compass Group North America.