NOV. 4, 2024 – Two previous rounds of employee cuts in September and October bring to 323 the number of workers let go — nearly a quarter of its former workforce of 1,350 statewide. The cutbacks come as ARC, founded by CEO Tim Robinson, remains the focus of an FBI probe into possible health care fraud. ARC has said it stands by its services and is cooperating with the investigation.
“This reduction in force and staff realignment is a direct result of multiple layers of significant reimbursement cuts for addiction and mental health service providers like ARC,” Brown said. “The reduction in force is not a decision that was made lightly, but one that was made out of necessity.”
Under their contracts with the state, the MCOs are paid a fixed rate for each member enrolled in their health plans. In turn, they have wide latitude in setting rates they agree to pay health providers.
Brown did not identify the MCOs making the cuts, but other providers have identified one of them as Wellcare, the largest of the six MCOs. Wellcare oversees care for about 418,000 Kentuckians.
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