Optum is a PBM, the FDA and many state legislatures are looking into how the PBM industry functions financially and Pres Biden is claiming that he is going to lower Rx prices. Is this how Optum is trying to get a head start on any impact that all of these things could do to protect their bottom line? Closing a 93,000 sq ft facility – that is about 1.5 times the size of your average Walmart store.  The second article states that RN case managers are being laid off. Are these part of the process dealing with prior authorizations? Does this mean that more PAs will be denied and/or take longer to get one approved?

Optum laying off 129, closing Ohio facility

https://www.beckershospitalreview.com/finance/optum-laying-off-129-closing-ohio-facility.html

Optum is closing a Change Healthcare facility in Toledo, Ohio, resulting in the termination of 129 employees located in Ohio or working remotely.

The layoffs will occur in three waves from July 15 to Sept. 6, according to regulatory documents filed with the state on May 16. The 93,000-square-foot facility is located at 100 North Byrne Road in Toledo.

In April, former employees with Optum and its subsidiaries took to social media regarding a reduction in force they say occurred across the company. Optum declined to provide more information about the layoffs at the time, and it is unclear if they are connected to the Toledo layoffs.

Optum also laid off an unknown number of employees in August. Affected facilities included the Everett (Wash.) Clinic and the Polyclinic in Seattle; Morgantown, W.Va.-based MedExpress Urgent Care; and San Antonio-based WellMed.

Here is a earlier article concerning these layoffs

Optum enacts layoffs, workers say

https://www.beckershospitalreview.com/workforce/optum-enacts-layoffs-workers-say.html

Former employees with UnitedHealth Group’s Optum and its subsidiaries took to social media beginning April 18 regarding a reduction in force they say occurred across the company.

Optum declined to provide more information April 19. Becker’s has not confirmed an exact number or range of employees who may have been terminated or when layoffs would be effective.

Across LinkedIn, former employees with Optum and affiliated providers have detailed layoffs enacted at their organizations. A range of roles appear to have been affected, from RN case managers to senior director and management positions.

In 2023, many large insurers conducted large workforce reductions due to financial or operational challenges in certain segments, along with restructuring strategies. 

Optum also laid off an unknown number of employees in August. Affected facilities included the Everett (Wash.) Clinic and the Polyclinic in Seattle; Morgantown, W.Va.-based MedExpress Urgent Care; and San Antonio-based WellMed.

UnitedHealth is still recovering from the cyberattack on Change Healthcare in February — the company had reinstated 80% of the functionality for its claims, payment and pharmacy services as of April 16.

UnitedHealth Group posted a $1.4 billion net loss in the first quarter of 2024, primarily due to the sale of its Brazil operations, along with the cyberattack. Despite the losses, the company beat investor expectations.

Filed under: General Problems