Centrex Rehab to Close Bloomington Facility, Lay Off More Than 300 Employees

Centrex Rehab to Close Bloomington Facility, Lay Off More Than 300 Employees

BLOOMINGTON, Minn. — Centrex Rehab, a Bloomington-based senior rehabilitation provider legally operating as Network Therapy Services LLC, has announced it will close its facility at 8120 Penn Avenue South in Southtown Office Park  and dissolve operations, resulting in the permanent layoff of 311 employees. The layoffs are scheduled to take effect on November 7, 2025, according to a WARN notice filed with the state.

Wide Impact on Healthcare Workers

The closure will affect a wide range of clinical and administrative staff, including physical therapists, occupational therapists, speech-language pathologists, rehabilitation assistants, insurance specialists, and human resources staff. Employees are not represented by a union and will not have bumping rights, meaning they cannot transfer into other roles within the organization.

Why Centrex Is Shutting Down

Centrex cited ongoing “operational pressures” in today’s healthcare environment as the driving factor behind its decision to wind down. The closure comes despite strong long-term projections for rehabilitation services:

• Minnesota’s senior population is expected to grow by 200,000 people by 2030, increasing demand for therapy and recovery services.
• The U.S. Bureau of Labor Statistics projects a 14% growth in occupational therapy jobs nationwide between 2024 and 2034, a rate much faster than the national average.

While the sector overall has been bolstered by an aging population and supportive healthcare policy, many providers have struggled with post-pandemic labor shortages, rising costs, and reimbursement challenges.

Supporting Staff and Residents

Centrex said it is working to secure alternative employment opportunities for many of its staff and has pledged to prioritize a smooth transition for both employees and residents. Depending on how many workers find new jobs through these efforts, the company noted it may not be required to fully comply with WARN Act requirements.

“Despite our best efforts to sustain operations, the challenges proved insurmountable,” the company said in a statement, emphasizing that its focus now is on ensuring continuity of care for residents while supporting employees through the transition.

A Difficult Closure Amid Rising Demand

The announcement underscores the paradox facing parts of the healthcare sector: demand for services continues to rise, but providers remain vulnerable to financial and structural pressures. Centrex’s closure is a reminder of the fragility in senior care and rehabilitation services, even as Minnesota prepares for one of the largest expansions of its elderly population in state history.

MinneapoliMedia