Nix Health reportedly told the state of Texas that it plans to close down its home health operations.
Nix Health has five facilities located in San Antonio: Nix Medical Center, Nix Specialty Health Center, Nix Alamo Heights, Nix Sleep Center, Nix Primary Care Center and Nix North Orthopaedic Center.
In a move expected to impact as many as 585 workers, the company will permanently close its Nix Home Care facility sometime in October or November. The company relayed the news in a notice to the Texas Workforce Commission, according to reports from the San Antonio Business Journal.
Last week, employees at Nix Home Care were informed of the planned shutdown and 18 workers were laid-off.
Nix Health and Prospect Medical Holdings Inc. did not respond to requests for comment from Home Health Care News.
In 2012, Los Angeles-based Prospect Medical Holdings Inc. acquired Nix Health. This year the company agreed to sell the Nix Professional Building in downtown San Antonio, according to the San Antonio Business Journal.
Established in 1996, Prospect Medical Holdings Inc. is a provider of coordinated regional health care services, operating in California, Connecticut, New Jersey, Pennsylvania, Rhode Island and Texas.
The 585 jobs facing elimination range from department heads to a baker, with other positions possibly including registered nurses, certified nursing assistant, medical assistants, mental health technicians and phlebotomists, San Atonia Express-News also reported.
In general, the industry is seeing more hospitals and health systems beginning to outsource home health offerings — or even shutter them completely due to financial and operational challenges.
On the flipside, 177 hospitals or health systems have also acquired home health agencies between 2016 and 2018, according to proprietary data from The Braff Group.
Additionally, roughly 25 joint venture announcements between home health companies and hospitals or health systems took place during this same time period.
“It’s a definite trend,” Mark Kulik, managing director at mergers-and-acquisitions advisory firm The Braff Group, told HHCN in March. “The theme is [that] it’s hard to be great at everything. Your core competency as a hospital is acute care. Home care is very different.”