Trinity Health is laying off 557 employees at its Livonia headquarters, with the cuts hitting a wide range of IT roles as the health system shifts technology support work to an outside vendor. The job losses will unfold in phases between October 25 and November 29, according to a state filing tied to the company's Victor Parkway campus.
The cuts were disclosed in a Worker Adjustment and Retraining Notification notice, a mandatory filing that companies submit when planning mass layoffs, as reported by WXYZ Channel 7. Trinity Health said the move stems from a June decision to change how the organization delivers IT services, with the company stating that a technology-support partner provides specialized expertise and innovation while strengthening service reliability. Among the roles being eliminated are 49 positions in Service Desk Support I, per the same filing details reported by the station.
State records reviewed separately confirm the scope of the filing: Trinity Health submitted a permanent restructuring layoff notice for its headquarters campus at 20555 Victor Parkway, affecting the 557 employees during the same October-to-November window, according to the State of Michigan. The station's report notes the layoffs include a variety of IT roles as Trinity Health outsources work previously handled in-house.
Law Firm Questions Whether Workers Got Full Notice
Class-action firm Strauss Borrelli PLLC announced an investigation into whether Trinity Health complied with federal law by giving affected Livonia employees the full 60 days of written notice required before mass layoffs. The federal Worker Adjustment and Retraining Notification Act of 1988 requires employers with 100 or more full-time workers to provide at least 60 days' written notice before laying off 50 or more employees at a single site. Failure to give proper notice can expose a company to damages equal to 60 days of pay and benefits per affected worker, according to the firm.
The Livonia cuts are not an isolated move. Trinity Health laid off 10.5% of its revenue cycle management department nationwide in January, shifting back-office billing work to an external vendor, as reported by Healthcare Dive. That outlet notes the pattern reflects a broader industry shift, as health systems facing low payer reimbursement rates, inflation, and high labor costs increasingly divest from internal back-office support functions.
Tight Margins Squeeze a Health Care Giant
The financial backdrop helps explain the pressure to cut administrative costs. For the nine-month period ending March 31, Trinity Health reported $200 million in operating income on $20 billion in revenue — a 1% operating margin — while managing $19.8 billion in expenses driven by rising labor and supply costs, according to Becker's Hospital Review.
Headquartered in Livonia, Trinity Health ranks among the largest Catholic health systems in the country, generating $25.4 billion in annual revenue and employing 133,000 workers across 91 acute-care hospitals in more than 20 states, per the company's own figures. Within Michigan alone, Trinity Health runs nine acute care hospitals across 29 counties and employs more than 24,000 full-time workers, making it one of the state's largest private employers, according to the Detroit Regional Chamber.
Part of a Wider Industry Retreat From In-House Tech
Trinity Health is far from alone in outsourcing internal technology functions. Health systems nationwide have accelerated IT and revenue cycle outsourcing this year, with Iowa-based UnityPoint Health cutting 207 IT positions to shift technical services to external partners, according to a post from Outsource Accelerator.
Livonia has already absorbed multiple large corporate workforce reductions this year. In July, beverage distributor Republic National Distributing Company issued state WARN notices eliminating 641 Michigan jobs, including warehouse and delivery operations based in the city, as Hoodline previously reported.
Clinical Spending Continues Even as Back-Office Jobs Shrink
Even as it trims administrative headcount, Trinity Health has continued pouring capital into clinical facilities across the region. The system is undertaking a $60.5 million emergency department expansion in Ann Arbor and building a new hospital campus in Brighton, reflecting a strategic reallocation of resources toward patient-facing infrastructure rather than internal IT operations.
It remains unclear whether affected Livonia IT workers will be offered transition roles with the incoming third-party technology vendor, and the outcome of the investigation into whether Trinity Health met the WARN Act's 60-day notice requirement has not been determined.
