Editor's Note: This article has been updated to include the official statement from Prisma Health Blount Memorial Hospital and additional context about the nature of the workforce transition that was provided to local media at the time of publication.
Blount Memorial Hospital in Maryville is laying off 85 employees as Prisma Health transitions its Food and Nutrition Services and Environmental Services functions to outside contractors, effective May 1. The reduction, flagged in a state WARN notice, affects roles in those two departments at Blount County's only hospital.
According to WBIR, the hospital filed a Worker Adjustment and Retraining Notification with the Tennessee Department of Labor and Workforce Development on March 24, after first notifying the department's Dislocated Worker Unit on March 10. The filing lists 85 affected positions and notes that the workers are not covered by a collective bargaining agreement and do not have bumping rights.
Why the change is happening
In an official statement, Prisma Health said the hospital is contracting its Food and Nutrition Services and Environmental Services functions to align operations with the broader health system. Prisma Health has partnered with Compass Healthcare organizations for several years — Morrison Healthcare for Food and Nutrition Services since 2021 and Crothall Healthcare for Environmental Services since 2023.
Compass Healthcare and Prisma Health are collaborating to give all frontline and management team members within these areas an opportunity to become Compass Healthcare employees, provided they meet pre-employment screening requirements. According to the hospital, the vast majority of team members involved with this change have already completed the initial onboarding steps to become Compass Healthcare employees and will remain part of the Blount Memorial team.
What the WARN filing means
Under Tennessee law, employers must submit WARN notices when 50 or more workers are affected in a layoff. After a notice is filed, the state's Dislocated Worker Unit and regional rapid response teams step in to coordinate transition services such as job-search assistance and retraining, according to the Tennessee Department of Labor and Workforce Development.
Local impact and response
Blount Memorial, the only hospital in Blount County, serves patients from across the area. The East Local Workforce Development Area rapid response team has been notified and is expected to coordinate transition services for any affected workers who do not transition to Compass Healthcare employment.
What employees can expect next
Affected workers typically have access to Rapid Response services, unemployment benefits and re-employment training coordinated through local workforce development boards. The Tennessee Department of Labor advises employees to contact the Dislocated Worker Unit or their local rapid response team for specific guidance and next steps.
