Following the merger between Tufts Medical Center parent Wellforce and a hospice and home care company, the home care sector of that small business will soon lay off its workers. The merger occurred in June, 2018 when Home Health Foundation joined with Wellforce.
At the time, the company was struggling with its positioning and was losing money with HomeCare, Inc. while it operates a skilled nursing company called Home Health VNA and a hospice service, called Merrimack Valley Hospice, it was this home care agency that was causing significant fiscal problems for the company. As a result, the company will be laying off 217 people who worked within this home care agency.
As reported by the Boston Business Journal in its news blog, Home care agency to lay off 200 after Wellforce merger, written by Jessica Bartlett:
““Over the last year, we’ve been going through a realignment of our strategies, and we need to be focused on our core competences, which is the clinical side of things,” said Donna Deveau, vice president of corporate communications for Home Health Foundation. “We’re positioning ourselves to build a network of home health to support the network of Wellforce.”
The change follows a trying year for HomeCare. The company suffered a $1.9 million operating loss in fiscal 2018, which ended in September. Deveau said the financial difficulties factored into the decision-making process, but it was more spurred by the desire to focus resources on clinical services.”
The company has made it clear those who require in-home care services, who had been relying on HomeCare, Inc. in the past will not go without services. They will be assisted in seeking out and finding replacement home care providers through other agencies in the area.
Also, Ms. Deveau also commented that they are hopeful other agencies providing home care support services throughout the state may be able to take on many of the staff who are being let go by HomeCare. The primary focus is to work with other Wellforce entities to help provide home care services to HomeCare’s clients.
It is unclear and unspecified why there were such significant losses for the fiscal year 2018 for HomeCare, Inc. there appears to be no indication that the clients who depend on these in-home care support services will have any trouble finding replacement caregivers and support services they require.
Home Health Foundation will be focusing its clinical services, which is the driving motivator for making this decision.
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