KALAMAZOO, Mich. — More than 250 contracted workers employed at various Beacon Health locations across Southwest Michigan will lose their jobs come July 1, according to a report from the Michigan Department of Labor and Economic Opportunity (LEO).

Compass Group USA, Inc. is laying off 262 workers employed at the following facilities owned by Beacon, per the report:

Beacon Allegan HospitalBeacon Health & Fitness Center in KalamazooBeacon Hospital in KalamazooBeacon Lee Hospital in DowagiacBeacon Pipp Hospital in Plainwell

LEO received the Worker Adjustment and Retraining Notification (WARN) letters from Compass Group USA, Inc. earlier this month.

The reason for company action listed in four of the five WARN letters — excluding Beacon Lee Hospital — read:

Compass Group USA, Inc. recently that its contract to provide services to Beacon Health and Fitness Center will be coming to an early termination due to the sale of the client’s business. This event will, unfortunately, result in the closure of our entire operations at this account and directly impact our staffing.

The reason for company action within Beacon Lee’s letter states early termination of service “due to sale of client’s business; permanent layoff.”

Types of jobs impacted include food service workers, cooks, patient services and retail managers, dieticians, housekeepers, administrative assistants, custodians, supervisors, and more.

A spokesperson with Beacon Health System sent News Channel 3 the following statement Monday afternoon:

Beacon Health System is bringing nutritional, environmental and transport services in-house at Beacon Kalamazoo, Beacon Allegan, Beacon Dowagiac and Beacon Plainwell hospitals, as well as Beacon Health & Fitness Kalamazoo, effective July 1, 2026, upon conclusion of an agreement with Georgia-based TouchPoint Support Services, a division of Compass Group USA. As a locally owned, locally led health system, integrating these services allows us to better align with our mission, improve efficiency and reinvest resources where they matter most.Beacon will offer employment opportunities in these service areas and encourages current TouchPoint employees to apply through Beacon’s standard hiring process. We are committed to our associates, our patients, and the communities we serve in southwest Michigan and across Beacon Health System.

Additionally, a support services spokesperson with TouchPoint Services also sent News Channel 3 a statement Monday afternoon:

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Our contracts with Beacon Health Kalamazoo, Beacon Health Allegan, Beacon Health Plainwell, and Beacon Health Dowagiac, as well as Beacon Health & Fitness Kalamazoo, are ending on July 1, 2026. We have been honored to serve patients, clinical caregivers, and guests at these Beacon Health hospitals and we will be working closely with the hospitals to ensure this transition is as smooth as possible. It is our understanding that there will be employment opportunities posted by Beacon Health for impacted associates to explore.