Bloomington-based senior rehab provider Centrex to close, lay off 311

Centrex Rehab, which provides physical and occupational therapy for seniors, is ending operations and laying off 311 employees connected to its headquarters in Bloomington, the company said Tuesday in a notice sent to state officials.

The health care company, which is known legally as Network Therapy Services LLC, will eliminate the jobs on Nov. 7 as it has “made the decision to wind up its operations and dissolve,” the letter said.

Centrex therapists work in locations including skilled nursing communities, assisted-living complexes, hospitals and clinics.

“Like many organizations in today’s healthcare environment, we are facing operational pressures that make it unsustainable to continue in our current form,” a Centrex spokesperson said in an email Wednesday. “Our priority now is to ensure a smooth transition for residents while also creating meaningful new opportunities for current employees.”

The layoff at 8120 Penn Av. S. affects occupational therapists, physical therapists and other employees. It comes as Minnesota and the United States are experiencing an increase in the number of older residents. The state’s population of 1 million elderly residents is expected to increase by about 200,000 by the end of the decade.

The U.S. Bureau of Labor Statistics has reported occupational therapist jobs will increase by 14% between 2024 and 2034, much faster than the average rate of growth for an occupation. Market research firm IBISWorld reports disposable income growth and beneficial government health care policies boosted the industry, which was marred by reduced spending during the pandemic.

Centrex Rehab had new investors as recently as 2017, and it was advertising efforts to hire new employees with signing bonuses just a month ago on LinkedIn.

The company is working to secure employment for the majority of affected employees, the letter said. Executives believe they can arrange alternative employment “to such an extent that a WARN Act notice may not be legally required,” the letter added.

But because of the uncertain timing and “exact nature of these arrangements at the time in which WARN notice would otherwise be required to be given,” the letter said it was best practice to issue one.