Rainbow Health, a Minneapolis nonprofit that provided services to LGBTQ+ patients across the state, abruptly closed its doors Thursday, citing financial challenges that leaders described as insurmountable.
About 80 people worked at Rainbow Health, and the union representing about 60 of those workers said staff received an email Thursday morning saying an emergency meeting was being held in two hours to announce the closure.
Rainbow Health provided comprehensive social and health services for people living with HIV, as well as specialized mental and chemical health services for the LGBTQ+ community.
The group’s CEO had resigned just days ago following a vote of no confidence from workers, the union said.
“It is with a heavy heart that we announce the closure of Rainbow Health,” the organization said in a Facebook post. “Due to insurmountable financial challenges, we are no longer able to continue operations.”
The nonprofit said it is working with local organizations to help patients and clients find continuity of care.
“Employees asked what would happen to tens of thousands of customers if the organization were to disband, many of whom have relied on Rainbow Health for essential services, but the board failed to answer these and other basic questions,” SEIU Healthcare MN&IA said in a news release.
Rainbow Health was formed about seven years ago with the merger of Rainbow Health Initiative, which was founded in 2001, and the Minnesota AIDS Project, which dates back to 1983.
The nonprofit had revenue of about $7.9 million in 2021, according to IRS filings.
The group has addressed a variety of issues, from transgender access to healthcare and smoking bans to concerns about the proposed merger of the Fairview and Sanford health systems. Earlier this year, Rainbow Health hosted an event at Como Park to celebrate people living with HIV and the community.
According to SEIU, Rainbow Health’s closure came despite a clause in the collective bargaining agreement that requires 30 days’ notice before layoffs.
A group called the Rainbow Health Workers Coordinating Committee, which represents union members at the clinic, said in a news release: “As staff dedicated to the mission of Rainbow Health, and even more so as our customers and community, we are shocked, saddened and outraged by this news. We are left with many big questions: Why was this momentous decision made without any warning?”
