Two nonprofits, Intermountain Centers for Human Development and Community Partners Inc., that provide behavioral health care for AHCCCS beneficiaries, consolidated to weather the storm of forecasted payment cuts and changes to Arizona’s Medicaid program.
The consolidation took effect on Friday, Aug. 31, 2018 as Intermountain absorbed Community Partners’ assets and liability, according to the Arizona Daily Star. Small providers can become expensive to maintain in the Medicaid market and when input from labor is no longer increasing a company’s outputs, layoffs and cuts are inevitable.
President and CEO of Intermountain and now Community Partners Rose Lopez told the Arizona Daily Star:
“The national trend has been cutting the cost curve. As a result, you have to become bigger, you have to be able to create economies of scale,” she said, “you also have to be able to combine your resources so that you’re continuing to be innovative and growing.”
Intermountain and Community Partners serve different demographics and regardless of the consolidation will be operating under their own names and continue to serve their respective clientele. The merging of administrative operations will cause approximately 10 to 15 layoffs out of a current employee pool of about 825 people.
Intermountain’s cuts represent some of the smaller scale layoffs as La Frontera Arizona reportedly laid off 200 employees in less than two years and COPE added 40 of their own to the unemployment number.
AHCCCS Complete Care begins October 1, 2018 and integrates the behavioral and physical healthcaare needs of Arizona Medicaid beneficiaries.
Read the Arizona Daily Star’s article for more on the looming changes in Medicaid and consolidation.