Rainbow Health in Minneapolis announces immediate closure
MINNEAPOLIS — Workers are demanding answers after a Minneapolis nonprofit shut down without notice, potentially leaving thousands of clients without care.
Employees at Rainbow Health — an organization that offers mental health and substance abuse support for people who are LGBTQ+ and people living with HIV — were notified Thursday of the immediate closure, according to SEIU Healthcare Minnesota & Iowa.
Contract language for the roughly 60 unionized workers requires a 30-day notice of layoff, however, SEIU says the workers were told the news hours before Rainbow Health closed its doors.
"We are shocked, saddened and angered by this news, both as staff dedicated to Rainbow Health's mission and even more so for our clients and community," the Rainbow Health Workers Coordinating Committee said in a statement.
Workers say they were not given an explanation of what happened or what will come next for the workers, clients or community.
In a Facebook post, Rainbow Health blamed the closure on "insurmountable financial challenges."
"We deeply regret any inconvenience this may cause and thank you for understanding during this challenging time. Your health and well-being remain our top priority," a spokesperson for Rainbow Health said. "We extend our deepest gratitude to our dedicated staff. Their unwavering commitment and compassion have made a significant difference in the lives of so many individuals."
Rainbow Health says it is working with local organizations to ensure its patients continue to receive necessary care.
SEIU says the CEO resigned after a unanimous vote of no confidence by the Rainbow Health Workers Union days prior to the closure.
Read Rainbow Health's full statement below:
"As the Rainbow Health Board of Directors, we want to address the organization's recent closure and the concerns raised by our staff, clients, and the community we have served for many years.
First and foremost, we deeply regret the abrupt nature of this closure and the distress it has caused. The decision to close Rainbow Health was made with heavy hearts after exhausting other options. Due to growing and insurmountable financial challenges, including decreased funding, grants that were not renewed or fully funded, and unforeseen cash flow issues, we reached a point where continuing operations were no longer possible. The Board chose to close the organization immediately to ensure employees receive compensation for the time they have worked since their last pay period.
We are working with outside consultants and are committed to filing all required documents with the appropriate regulators and making our final return and audit publicly available.
Our immediate priorities are as follows:
1. Ensuring Continuity of Care for Our Clients: We are actively working with several organizations that have stepped forward and offered assistance in ensuring Rainbow Health clients continue to receive care.
2. Supporting Our Staff Through This Difficult Transition: We are partnering with Twin Cities Quorum to connect our former employees with new job opportunities in their fields. The Twin Cities Quorum job board allows our staff to explore available positions and is updated as new opportunities are announced.
3. Preserving and Managing Organizational Records: The remaining staff and the Board are working to resolve any remaining client or staff issues and ensure an orderly dissolution.
To our HIV and LGBTQ+ communities and all those we've served: We recognize Rainbow Health's vital role and the void this closure leaves. We are working diligently with our community partners to minimize service disruptions and ensure that our community's critical needs continue to be met.
We deeply regret the pain and disruption this closure has caused. Rainbow Health's mission has always been to support and empower our community, and we are heartbroken that we can no longer continue this important work. We are grateful for the dedication of our staff, who have worked tirelessly to serve our community."
If you or someone you know in the LGBTQ+ community needs support, there are numerous resources and services available through Outfront Minnesota, NAMI and Twin Cities Pride.
If you or someone you know is in emotional distress, get help from the Suicide and Crisis Lifeline by calling or texting 988. Trained crisis counselors are available 24 hours a day to talk about anything.
In addition, help is available from the National Alliance on Mental Illness, or NAMI. Call the NAMI Helpline at 800-950-6264 or text "HelpLine" to 62640. There are more than 600 local NAMI organizations and affiliates across the country, many of which offer free support and education programs.
