UnitedHealth Group is laying off Optum employees as it restructures its healthcare service subsidiary.
The healthcare conglomerate cut jobs at MedExpress urgent care clinics and at WellMed Medical Group this month, the company confirmed, although it would not disclose how many employees were laid off or if Optum workers in other locations have been or will be let go.
“We continually review the capabilities and services we offer to meet the growing and evolving needs of our businesses and the people we serve,” an Optum spokesperson wrote in an email. “As always, we will support affected team members with job placement resources and seek to deploy them where possible to any open roles within the company.”
Optum, which employs the most physicians of any company with 70,000 doctors on staff, plans to hire 10,000 more this year.
MedExpress offers urgent care in nine states. WellMed Medical Management is a risk-bearing management service organization specializing in care for older adults that works with physician practices in multiple states and provides primary care in Florida and Texas. Optum acquired Morgantown, West Virginia-based MedExpress in 2015 and San Antonio, Texas-based WellMed Medical Management in 2011, both for undisclosed sums.
Optum informed MedExpress registered nurses that their jobs would be eliminated as part of a nationwide strategy, said Dr. Miranda Rose, an employee at its Beckley, West Virginia, clinic. “They’ve been cutting clinical hours. Many RNs use paid time off in order to stay full-time and continue to receive benefits like healthcare. In the meantime, we’re scratching our heads, watching them hire multiple medical assistants while our staff is not getting enough hours,” she said.
The company declined to comment on whether it had eliminated jobs at Redlands, California-based Beaver Medical Group. Attorney Michael Morrison of Allred, Maroko & Goldberg said Beaver Medical Group workers had been laid off and are in communications with him about possible legal action.
UnitedHealth Group reported an 8% rise in net income to $5.4 billion, or $5.82 per share, during the second quarter as revenue grew 15.6% to $92.9 billion, the company reported last month. Optum revenue increased 25% to $56.3 billion while its operating margin declined from 7.3% to 6.6% during the quarter.
The company installed new senior executives at the subsidiary this summer, including Heather Cianfrocco as Optum president and Dr. Amar Desai as CEO of Optum Health.
Correction: An earlier version of this story inaccurately stated that Optum laid off employees at a single MedExpress location in Beckley, West Virginia. The company also eliminated positions at other, unspecified locations.
