The Advisory Board Co. is laying off 220 employees, or 5.7% of its total workforce, as part of a restructuring plan.
The Washington, D.C.- based healthcare consulting firm Wednesday said it experienced a difficult second half of the year, especially in the months of November and December following the election, “as members reassessed their strategy and path forward.”
By the end of 2017, the restructuring will have saved the firm about $25 million. Some services that don't align with the Advisory Board's “long-term strategy,” including care-management workflow, nursing workforce and infection control analytics, will end. The firm will also close four of offices by year-end.
The Advisory Board expects to focus its technology and consulting services on three problem areas for hospitals and health systems: health system growth, reducing care variation and optimizing the revenue cycle.
“We are taking bold steps to position our health care business to seize the sizable longer-term opportunities in front of us,” said Robert Musslewhite, chairman and CEO of the Advisory Board.
The company expects to report revenue in the range of $780 million to $840 million by the end of 2017. That's compared to about $805 million to $807 million in revenue at the end of 2016, which is about $10 million short of its previous expectations.