Optum, UnitedHealth Group (NYSE: UNH)’s services arm, has reportedly laid off behavioral health managers and other roles in a restructuring effort that impacted at least 100 employees.
A significant number of layoffs will impact employees at Optum-owned Landmark, an in-home medical group, according to Fierce Healthcare. Social workers and social work managers were also laid off, along with workers at Episource and WellMed Medical Management.
This is the second round of significant layoffs at Optum in recent months. In May, Optum reportedly eliminated hundreds of employees and discontinued its virtual care business.
Optum agreed to acquire Huntington Beach, California-based Landmark in 2021. Landmark provides in-home physical and behavioral care using a comprehensive approach. It employs psychiatrists, social workers and care coordinators who treat behavioral health conditions, including adjustment disorders, depression, anxiety, cognitive impairment and substance use disorders (SUDs).
Landmark merged with home-based care provider Prospero Health in March 2023.
Behavioral health care managers, which were among the positions impacted by Optum’s layoffs, work to support and coordinate patient care as part of a collaborative care team, according to the University of Washington AIMS Center.
Optum did not respond to Behavioral Health Business’s request for comment by the time of publication.
Optum has increasingly prioritized behavioral health in recent years. The company’s CEO, Heather Cianfrocco, said that behavioral health was a strategic priority in 2023, and Optum acquired the fast-growing outpatient mental health provider CARE Counseling in April.
While Optum has publicly prioritized behavioral health care, its parent company has been in the news for failing to abide by federal behavioral health parity laws.
In April, UnitedHealth lost its appeal of a lawsuit alleging that the company inflicted a more stringent assessment process for SUD treatment claims than comparable physical health claims, leaving one patient with hundreds of thousands of dollars in charges.
UnitedHealth also experienced a serious setback to its business with the Change Healthcare cyberattack. The company recently acknowledged that the attack was more impactful than initially estimated, announcing that per-share business disruption impacts increased by 30 cents since its estimates in Q1.