Syracuse based Nascentia Health will lay off 71 employees in and around Syracuse and upstate NY due to state Medicaid reductions totaling $400 million in revenue this year.
The company which employs about 800 people and is headquartered at 1050 West Genesee Street, Syracuse, says eliminations were due to the state cuts to managed long-term care plans (MLTC).
Under MLTC, the care is provided in the homes of chronically ill patients. Skilled nursing, social work and transportation, and additional services are offered.
The nonprofit will experience the loss of 65% of its MLTC enrollees and permanent placement in nursing homes will no longer be allowed by the state for Medicaid patients.
“After vigorous analysis, the unfortunate reality is there is no alternative but to restructure our organization,” Rolf said in a release,” said Kate Rolf, Nascentia President and CEO.
“We are not alone in feeling the impact of New York State’s ‘carve-out’ of nursing home members from the managed long-term care,” said Rolf, according to Home Health Care News.
Rolf said the company was notified by the state Department of Health (DOH) in January of the March 1 disenrollment of 65% of enrollees in the company’s managed long-term care plan that operates in 48 Upstate New York counties. No changes will affect members whose nursing home stays are short-term, defined as less than 90 days.
Nascentia care manages a majority of nursing home elderly or disabled patients. Though Nascentia will no longer manage the patient’s care, they can remain in their perspective nursing homes.
Nascentia Health says it is providing job placement assistance with an employment agency to employees who experienced the loss of positions.
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