Cigna's Evernorth Care Group laying off 261 in Arizona
The strategic plan is to focus on integrated primary care by winding down specialty services in some locations.
Photo: Morsa/Getty Images
Cigna's Evernorth Care Group is laying off 261 employees in Scottsdale, Arizona, according to an Arizona WARN notice posted on May 31.
The Worker Adjustment & Retraining Notification Act (WARN) is a federal law which requires employers to provide advanced notification to workers when faced with a plant closing or mass layoff.
Evernorth Care Group said by statement:听"Evernorth Care Group remains highly committed to serving our patients in Arizona, and we will continue to provide high-quality, affordable care and exceptional service. Our comprehensive integrated primary care services include family, internal medicine and geriatric care, dermatology and behavioral/ mental health services. In addition, our care centers conveniently offer retail pharmacies at several of our locations."
Evernorth is the brand for Cigna's health services portfolio.听
WHY THIS MATTERS
To sharpen its focus on integrated primary care, Evernorth's focus is on winding down certain specialty services in some locations, with consolidation and expected reduced workforce roles听a听part of that plan.
The layoffs follow the sale of outpatient imaging centers in Phoenix. In January, RadNet that its joint venture Arizona Diagnostic Radiology Group had acquired seven outpatient imaging centers in Phoenix from Evernorth Care Group.
The acquisition was expected to expand outpatient imaging services for Evernorth Care Group patients, who would now have access to Arizona Diagnostic Radiology's nine additional imaging centers in the Phoenix market, according to RadNet.听
THE LARGER TREND
In May, Cigna reported听a $277 million net loss in Q1, compared with profits of $1.27 billion a year earlier.
The loss was driven by a noncash after-tax net realized investment loss of $1.8 billion, primarily related to a VillageMD impairment charge to write off assets. Walgreens has been closing underperforming VillageMD clinics in an effort to cut costs.
Email the writer: SMorse@himss.org
