FamilyCare Health is a Medicare Advantage organization. Since 1984, the company has managed its member’s health services. On December 15, 2017, FamilyCare Health submitted a WARN notification with the Oregon Office of Workforce Investment. The letter was sent in compliance with the Worker Adjustment and Retraining Notification Act. In the letter, the company explains that it was unable to provide notice sooner, due to an unforeseeable business circumstance.
The company’s Board of Directors met on the evening of December 14, 2017 and concluded that it could not sign the 2018 version of its Coordinated Care Organization, CCO, contract with the Oregon Health Authority. The rates offered were the lowest in the state for three consecutive years and have resulted in the company experiencing significant and unsustainable losses.
The company is continuing negotiations with the Oregon Health Authority to avoid the layoffs and business closure. There are no assurances that the negotiations will be successful. As a result, the company expects to conduct a layoff and plant closure at 825 NE Multnomah, Suite 1400 in Portland Oregon. The company believes that the layoffs could occur on or around January 5, 2018 or during the 14-day period starting on that date.
If the company is unable to reach an agreement with the Oregon Health Authority, it will most likely terminate the employment of up to 250 employees on January 5, 2018. The remaining 72 employees will be laid off at a date, which has yet to be determined. The full WARN notification can be found here.