UnitedHealth Group’s Optum Care Solutions’ naviHealth division has laid off 114 people, or 15.2% of employees in certain job classifications who work in Tennessee and remote locations.
The company attributed the layoffs to “a reduction in force or restructuring” and said the positions are being eliminated, according to a document sent to employees last week and obtained by Modern Healthcare.
Related: Tracking layoffs, closures in healthcare nationwide
UnitedHealth Group acquired Brentwood, Tennessee-based naviHealth in 2020. NaviHealth is a software company that manages post-acute healthcare services.
The job cuts were based on a review of employee performance as well as a response to business needs, the document said.
Clinical review coordinators, client services account managers, provider relations representatives and administrative assistants were among those affected and will be eligible for severance packages, according to the document.
UnitedHealth Group did not respond to questions about the layoffs. A spokesperson said there are about 6,200 employees in 19 offices across Tennessee.
“We are committed to making healthcare more affordable for our customers and the consumers we serve," the spokesperson wrote in an email Tuesday. "As part of that commitment, we regularly review our products, services, staffing requirements and real estate needs to ensure they align with our evolving business to best meet the needs of our customers while we operate as effectively and efficiently as possible."
Social media erupted last week with posts from individuals who said they had been laid off.
UnitedHealth Group was sued in November for using an artificial intelligence tool developed by naviHealth to allegedly deny post-acute care coverage to Medicare Advantage enrollees. The suit is pending. UnitedHealth Group has previously said the AI tool is not used to make coverage decisions. Other health insurance carriers, including Cigna, face similar lawsuits.
UnitedHealth Group is dealing with additional costs that could total up to $1.6 billion this year as it deals with direct response expenses and business disruption impacts following a cyberattack on its Change Healthcare technology subsidiary in February.
