Amid massive losses of more than $400 million, one major health system is laying off hundreds of workers from its home health division.
Louisville, Kentucky-based health insurance company Humana (NYSE: HUM) announced Wednesday that 500 positions in its Ohio and Florida home health care units will be eliminated in early April, The Cincinnati Enquirer reported.
The layoffs follow the company revealing that it is facing challenges in the private Medicare plan market and a net loss of $401 million for the fourth quarter of 2016, Life Health Pro reported.
“The eight-year-old Humana At Home unit employs nurses and nurse practitioners with support staff and administrators to bridge Humana customers from a stay in a hospital or other care facility to life back at home,” according to The Cincinnati Enquirer.
Laid off employees of Humana At Home were told the news on Feb. 1 during a conference call with Humana Vice President for Integrative Care Mike Franks.
Those affected by the layoffs will receive severance and job placement help, and some could be eligible for new roles within the company.
“From talking with the leaders of this team, this decision was not easy for them and was the result of what they’ve learned in the eight years since we started Humana at Home,” Kate Marx, spokeswoman for Humana, told The Cincinnati Enquirer.
The news also comes after chatter about a proposed $37 billion merger between Humana and insurance provider Aetna (NYSE: AET), though the takeover has been temporarily blocked a federal court. The layoffs did not have anything to do with the merger, according to Humana.
Humana has yet to publicly announce the layoff. The news of the layoffs was released through a tip The Enquirer received Tuesday, the article said.
“It is important to note that helping our members living with chronic conditions maintain their highest possible quality of life remains the goal of Humana At Home and a critical element of Humana’s strategy going forward,” Marx said.
The company’s earnings for the fourth quarter of 2016 were released on Feb. 8, 2017. Despite reporting a net loss for the quarter, the company’s stock rose in the days after its earnings release.
Written by Alana Stramowski