Just days after news surfaced that CVS Health (NYSE: CVS) was interested in purchasing Signify Health Inc. (NYSE: SGFY), separate reports came out saying the Dallas-based company planned to lay off nearly 500 people.
Specifically, Signify will lay off a total of 489 people. The layoffs will affect people in states including Texas, South Dakota, New York and Connecticut.
“We are reducing our workforce in consideration of the fact that, as we announced in July, we are transitioning our focus from a stand-alone episodes offering to a total cost of care management solution,” Lynn Shepherd, vice president of strategic communications with Signify, told Home Health Care News in an email Friday. “We have notified employees whose roles are impacted by this decision.”
Signify is a tech-enabled, value-based care platform that partners with both health plans and health systems to deliver a variety of care services to patients in their homes.
The company is currently searching for other positions within the business for qualified and eligible employees where possible, Shepherd said.
In July, Signify announced that it would be winding down its Episodes of Care Services (ECS) segment while it focuses on its Home and Community Services (HCS) business.
At the time, Signify CEO Kyle Armbrester said the decision was driven by “recent policies implemented by the Center for Medicare & Medicaid Innovation,” which made continuing to operate in that market segment unsustainable.
The most recent string of layoffs is also an indicator of Signify focusing more on Caravan Health, which it acquired in March.
“Approximately 500 employees will be redeployed to other roles in the company or impacted by the reduction in force,” Shepherd said.
According to state documents, 175 of the 489 employees will be affected in New York; 45 of the layoffs will come from Signify’s Norwalk, Connecticut, office, CT Insider reported Friday. The majority of the layoffs, 342, will involve individuals who are working remotely.
At least in New York, the layoffs will begin Oct. 1, according to state documents filed by Signify.
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