Howard Brown Health is laying off 43 employees in an effort to close a $6.6 million budget gap at the LGBTQ+ healthcare organization.
Interim President and CEO Dr. Robin Gay, who was appointed to the role in February following the departure of former CEO David Ernesto Munar, announced the cuts in a July 1 email to employees.
The layoffs will affect people in some management, administrative and other staff positions and will go into effect Aug. 30, Gay said. They include roles that were funded by more than $3.5 million in government grants and reduced savings from federal drug programs that are expiring. This is a challenge that federally qualified health centers across the country are grappling with, Gay said.
The cuts represent 7% of Howard Brown’s workforce, Gay said.
“To those of you who will be leaving Howard Brown, I want you to know that this decision is not a reflection on your many contributions or steadfast commitment to our patients,” Gay said. “We are incredibly grateful for all that you have done for our organization.”
The laid-off employees will receive:
- A 60-day notice period, which is longer than what’s contractually required for union and non-union staffers.
- Severance pay.
- Services helping them with their job search.
- Healthcare through the end of the severance payments, along with eligibility for COBRA insurance.
- All other benefits offered in employee agreements, including 401k matching.
“Please know that we will treat impacted employees with compassion and empathy and do everything we can to support them in their next steps,” Gay said.
The cuts come at the start of Howard Brown’s 50th fiscal year and are aimed at addressing a $6.6 million budget gap from last year, Gay said. This is the third year in a row the organization has run an operating budget shortfall.
The cuts follow a previous round of layoffs in 2023, when 61 employees were let go amid budget cuts, resulting in a three-day strike among the union, which formed in August 2022.
The union has filed multiple unfair labor practice allegations against Howard Brown Health with the National Labor Relations Board, which filed a complaint earlier this year accusing Howard Brown of violating the National Labor Relations Act when it laid off those employees. If a settlement isn’t reached between Howard Brown and the union, the issue will go before a labor judge later this year.
Other measures Howard Brown has taken to reduce spending have included moving to close its clinics at 2800 N. Sheridan Rd. and 734 W. 47th St. later this year when their lease agreements end.
The union, represented by the Illinois Nurses Association, said in an emailed statement the group is contacting Howard Brown management to ensure it complies with their contract, which was ratified in May.
Some of the laid-off workers, including John Matz, an aging services case manager who’s been with Howard Brown for four years, said they were locked out of Howard Brown’s systems this morning, even though the layoffs don’t take effect until Aug. 30.
“My job is to help people going through housing and safety crises, and I have no way of contacting my patients to assist or connect them with other case managers,” Matz said. “A patient in crisis who needs access to housing had an appointment with me today, but their crisis will continue to escalate due to HBH cutting off my access before the official layoff date.”
Since its founding as an STI clinic in 1974 by a group of queer medical students, Howard Brown Health has grown to become one of the country’s largest LGBTQ+ organizations with eight clinics across the city.
But through its massive growth, Howard Brown Health “became that over-extended caregiver who always tries to show up to serve others, while not always focusing on what they need to sustain themselves,” Gay said.
The latest cuts will put Howard Brown Health on a path toward sustainability, Gay said.
At the same time, the organization is working to improve its core services by expanding the number of providers in its three South and West side clinics, increasing the number of infectious disease specialists on staff and doubling down on its efforts to Get to Zero, Gay said. The organization is also creating a position for a medical director of trans and gender-diverse care.
“While I know today’s news is difficult to hear, I want to emphasize that Howard Brown’s future is incredibly bright,” Gay said. “We have so much to look forward to as we continue our legacy of empowering patients and advancing health equity.”