Rainbow Health, which has provided health care services to the Twin Cities LGBTQ community for more than 40 years, announced the closure to employees on Thursday, according to union members.
Employees were informed of the closure during an announcement in the morning and a staff meeting at 12:15 p.m.
“I never thought anything like this would happen,” said Michelle Peterson, a benefits counselor at Rainbow Health and president of the Rainbow Health union, which is represented by SEIU Healthcare of Minnesota and Iowa.
Peterson said board members at the meeting cited funding issues as the reason for the closures and suggested all facilities would be closed, including the St. Paul behavioral clinic that opened in 2018.
Rainbow Health officials did not respond to calls or emails seeking a statement Friday. A phone number for Rainbow’s main office now redirects to a recorded message announcing the closure, in part due to funding issues. Rainbow Health’s website, rainbowhealth.org, has also been updated to announce the closure.
Peterson said the union is currently discussing possible legal action because the union contract requires 30 days’ notice before any terminations occur.
The Rainbow Health Workers Coordinating Committee issued a statement expressing shock at the sudden closure and requesting information about the status of any funding the organisation was receiving.
“How can they justify the lack of notice, knowing the harm this would cause to deeply marginalized clients who rely on our professional support,” the statement said. “We are seeking answers to these questions from the organization’s board of directors and will continue to stand united in fighting for our rights as workers and finding ways to ensure continuity of client care to members of the communities we serve.”
Vote of no confidence
Peterson, who just celebrated her fifth anniversary working at Rainbow Health in June, said the sudden closure left many customers in the dark, some of whom had been clients of Rainbow Health or its predecessor, the Minnesota AIDS Project, for more than 30 years.
The Minnesota AIDS Project was started by volunteers in 1980 and focused on providing a support network and information for gay and bisexual men in the midst of the AIDS epidemic, eventually growing to include a formal referral network in the early 2000s and merging with the Rainbow Health Initiative in 2018 and briefly named JustUs Health, before changing its name again to Rainbow Health in 2021.
Peterson said communication had been a frequent issue in recent years. Just days before the nonprofit’s closure was announced, CEO Jeremy Hanson-Willis resigned following a unanimous vote of no confidence, according to a statement from the union. Peterson cited poor communication as a key factor in the vote of no confidence.
“We were never invited to any discussions,” Peterson said. “This was the first time we’d even seen the board.”
Peterson said the roughly 60 workers represented by the union were vaguely aware the organization had funding issues and wanted more clarity on that front.
She said Thursday was their last payday and many workers are volunteering to help with Rainbow’s closure and transition of customers with no guarantee of compensation.
“This is going to leave a big hole,” Peterson said, adding that many of her clients will be without health care services until other organizations absorb them.
She encouraged her clients to look into other organizations that may be able to provide the information they need, such as the Aliveness Project.
“There’s nothing more I can do.”
First published: July 19, 2024, 6:50 PM
