SC hospital chain to lay off nearly 700, report says. But they may be hired by new company

South Carolina’s largest hospital chain, Prisma Health, will lay off almost 700 people at the end of August as it partners with a company to provide environmental services, according to Prisma and a state filing.

The affected employees will be eligible for employment with the Compass One Healthcare, the new cleaning company, according to Prisma. “No positions will be eliminated as part of the transition from Prisma Health to Compass One,” the hospital system said.

A press release states 550 positions will be affected by that change, but the state report lists 689 layoffs. The State has asked Prisma for information on the discrepancy.

The affected employees were notified of the layoffs Thursday, according to the state notice, filed with the South Carolina Department of Employment and Workforce. Federal rules mandate that companies report when they plan to have mass layoffs.

Employees that currently provide cleaning services for Prisma will be given “an opportunity to become part of the Compass One team if they are interested,” the release reads.

The change will affect 266 people in Richland County and 265 people in Greenville County. Prisma employees in Sumter (61), Oconee (41), Pickens (33), and Laurens (23) counties will also be affected. The layoffs take effect by August 31.

Compass One is a Pennsylvania-based healthcare support company. In addition to cleaning services, the company also contracts with hospitals to provide patient transport, nutrition and other services.

Prisma Health has existed since 2018, when Greenville Health System merged with Palmetto Health. The hospital system has nearly 30,000 employees across South Carolina.

The company had major layoffs in Jan. 2020 as well, when it laid off more than 300 people – just before the COVID-19 pandemic began.