Nascentia Health eliminates 71 jobs after state Medicaid cuts

SYRACUSE, N.Y. — Nascentia Health has cut 71 jobs after state reductions in Medicaid spending that will cost the organization $400 million in revenue this year.

The nonprofit, headquartered at 1050 W. Genesee St. in Syracuse, specializes in home health-care services.

In its statement, Nascentia Health pointed to upcoming changes that the New York State Department of Health (NYSDOH) is implementing to “carve out” nursing-home members from managed long-term care plans. Those changes are reducing Nascentia’s revenue.

Nascentia Health says it is providing the employees whose positions were eliminated with access to an employment agency to assist with job placement.

The impact

Effective March 1, 65 percent of its membership will be “disenrolling” from Nascentia Health Options, a managed long-term care (MLTC) plan that operates in 48 counties throughout upstate New York, per its statement. The remaining 35 percent of the membership residing in the counties they serve will stay in the plan.

The “significant loss” in the membership equates to a loss of over $400 million in revenue this year for Nascentia Health.

This is in addition to “millions of dollars” that the NYSDOH has cut from Nascentia’s funding to fix the state Medicaid deficit shortfall of more than $6 billion.

Nascentia Health received notification of this change on Jan. 9, the organization said.

“To keep the system viable and continue to efficiently continue caring for those they serve,” Nascentia Health was “forced” to restructure the organization and eliminate positions.

“After vigorous analysis, the unfortunate reality is there is no alternative but to re-structure our organization. We are not alone in feeling the impact of New York State’s ‘carve out’ of nursing home members from the managed long-term care [MLTC] program. Across Upstate New York, 42 percent of MLTC members are permanently placed in a nursing home. While it changes the traditional landscape of Nascentia Health, our commitment to delivering quality patient care remains our top priority just as it always has,” Kate Rolf, president and CEO of Nascentia Health, said. “We will continue to advocate with our elected officials for adequate rate reimbursement and improved processes in implementing such drastic policy changes from the state.”

About Nascentia Health

Nascentia Health is the rebranded name of the organization that involves the “unification” of VNA Homecare, VNA Homecare Options, Home Aides of Central New York and all their respective affiliated organizations and foundations.

Specialties include in-home nursing and medical services; home health aides and elder care; complete cross-continuum care management; community health and wellness programs; transportation, equipment and innovative care technologies; chronic disease management; managed long-term care; and a Medicare Advantage Plan.

The system’s coverage area spans 48 counties across Central and Upstate New York.

Contact Reinhardt at ereinhardt@cnybj.com