New York — One New York-based healthcare provider laid off 71 employees following state Medicaid spending cuts that will reportedly cost it $400 million in revenue.
Nascentia Health announced the layoffs in February. The provider said the layoffs were necessary since the state is no longer allowing Medicaid patients permanently placed in nursing homes to be part of managed long-term care plans.
The state notified the company that 65% of members enrolled in the company’s managed long-term plan were disenrolled from the plan in March. The change, however, does not affect members placed in nursing homes for short periods or fewer than 90 days.
