Oct. 21—SIOUX FALLS, S.D. — Sanford Health announced to its employees Wednesday afternoon, Oct. 19, that the sprawling health organization would begin laying off certain non-clinical employees in an effort to "strategically manage" their operations in the region.

In an email to employees, Bill Gassen, president and CEO of Sanford Health, said the organization would be shaking up leadership and simplifying operations in an effort to reduce costs.

"Over the last two years, we have worked to bring renewed focus to our central purpose of delivering exceptional health care. This includes making new investments to advance the care we provide, closing out programs outside our core mission and reducing administrative expenses," Gassen's email reads. "This week, that work continued as we made the very difficult decision to streamline our leadership structure and simplify operations in a few focused areas."

Gassen noted that many of the employees affected were met with immediate job offers, as Sanford Health is currently hiring for more than 6,000 positions, most of which are patient-facing.

"These changes have been driven by our recognition that at the end of every decision is a patient or resident," Gassen's email reads, "and that remains our focal point as we move our organization forward."

A spokeswoman for Sanford Health's corporate office in Sioux Falls told Forum News Service that the organization was unable to provide specific details, including the number of layoffs and which of the company's regions are affected.

The announcement came roughly two months after the healthcare organization announced the delay of a groundbreaking on a $46 million heart hospital in Fargo, a complex estimated to range in size from 80 to 100,000 square feet.

Sanford officials cited that project was delayed due to forecasted construction cost increases expected in the next 18 to 36 months.

According to Sanford's website, the organization is composed of 44 hospitals and nearly 500 clinics in the Midwest, employing over 48,000 employees.