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Analyzing Cigna’s Evernorth Care Group Layoffs
Recently, according to an Arizona WARN notice posted on 31st May Cigna’s Evernorth Care Group layoffs are quite a concerning topic. The report stated that Evernorth Behavioral Health Cigna is considering laying off 261 employees in Scottsdale, Arizona.
To help you break down the recent Evernorth Care Group layoffs, first, you need to understand what WARN means. Simply put, “WARN stands for The Worker Adjustment & Retraining Notification Act. It is a federal law which requires employers to provide advanced notification to workers when faced with a plant closing or mass layoff.”
In contrast to the recent layoffs, a statement is being issued by Evernorth Behavioral Health Cigna stating that “Evernorth Care Group remains highly committed to serving our patients in Arizona, and we will continue to provide high-quality, affordable care and exceptional service. Our integrated primary care services include family, internal medicine and geriatric care, dermatology, and behavioral/ mental health services. In addition, our care centers conveniently offer retail pharmacies at several locations.”
What is Evernorth Cigna Health?
Now you might be thinking what is the connection between Evernorth and Cigna Health? In short, Evernorth is the brand for Cigna’s health services portfolio. It was created to elevate overall health for all. Its main focus was to improve performance and help people reach better health outcomes. It started with eliminating barriers to care and unleashing the power of data across the pharmacies.
Evernorth Behavioral Health Cigna Layoffs Follow Strategic Shift and Imaging Center Sales
Though Health insurance companies’ layoff like Cigna matters a lot, the strategic plan behind the layoffs is to focus on integrated primary care by winding down specialty services in some locations with consolidation and expected reduced workforce roles as part of that plan.
The Evernorth Care Group layoffs followed Phoenix’s sale of outpatient imaging centers. In January, RadNet announced that its joint venture Arizona Diagnostic Radiology Group had acquired seven outpatient imaging centers in Phoenix from Evernorth Care Group.
The acquisition was expected to expand outpatient imaging services for Evernorth Care Group patients, who would now have access to Arizona Diagnostic Radiology’s nine additional imaging centers in the Phoenix market, according to RadNet.
Key Insights on The Biggest Evernorth Care Group Layoffs
In May, Cigna reported a $277 million net loss in Q1, compared with profits of $1.27 billion a year earlier. A noncash after-tax net drove the loss realized investment loss of $1.8 billion, primarily related to a VillageMD impairment charge to write off assets. Walgreens has been closing underperforming VillageMD clinics to cut costs.
This biggest layoff of the Evernorth Behavioral Health Cigna can help the largest health insurance company cut costs and focus on providing high-quality primary care services to its members.
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FAQs
1. What is Evernorth Cigna Health and how does it relate to Cigna?
Ans. Evernorth is the brand representing Cigna’s health services portfolio. This sub-brand was specifically created and launched to improve the overall health of everyone in the USA. Evernorth is highly focused on enhancing health results by offering a complete package of primary care services, including family, internal medicine, geriatric care, dermatology, and behavioral/mental health services.
2. What was the reason for Evernorth Behavioral Health Cigna’s choice to terminate 261 workers in Scottsdale, Arizona?
Ans. The layoffs at Evernorth Behavioral Health Cigna are a strategic move to prioritize integrated primary care and phase out specialty services in certain areas. This consolidation is expected to streamline operations and reduce workforce roles. The layoffs follow the sale of outpatient imaging centers in Phoenix, indicating a shift in the company’s focus towards more integrated primary care services.
3. How will the Evernorth Care Group layoffs impact patient care in Scottsdale, Arizona?
Ans. While 261 employees in Scottsdale, Arizona were impacted by the Evernorth Care Group layoffs, the Health insurance company Cigna has reaffirmed its dedication to providing care for its patients. In brief, the Evernorth Care Group will be offering top-notch, and cost-effective care to all its patients with an array of integrated primary care services, such as family, internal medicine, geriatric care, dermatology, and behavioral/mental health services. The layoffs are a component of a strategic initiative aimed at simplifying operations and concentrating on essential services, guaranteeing that patient well-being continues to be a primary concern.