Addiction Recovery Care cuts more staff in response to payment cuts
Addiction Recovery Care cuts more staff in response to payment cuts
By Roberta Cantrell
BSN Editor
More closures and staff reductions were announced by Addiction Recovery Care ARC as it plans for cuts of 20% or more from some of the private insurance companies that process and pay most of the state’s Medicaid claims.
According to the Kentucky Health News, ARC, which is based in Louisa and is the largest provider of drug and alcohol treatment of its kind, said it will temporarily close programs in Boyd, Jackson, Fleming and Pulaski counties following the announcement they were restructuring some programs and laying off staff after being notified of the pending ARC of the pending cuts.
In a statement, ARC said it remains committed to providing substance use disorder treatment across Kentucky.
Matt Brown, chief administrative officer for ARC, didn’t specify how many employees will be affected by the reductions announced Wednesday, however, to the staff cuts last month, it employed 1,350 people.
In addition, the programs already closed in Louisa will be Sanibel House in Boyd County; Beth’s Blessings in Jackson County; Belle Grove Springs in Fleming County, and Lake Hills Oasis in Pulaski County.
Brown said clients will be offered placement in other ARC programs or the option to change to a different provider to continue treatment.
Meanwhile, he said ARC continues to negotiate over the pending rate cuts.
“We are very hopeful to have these negotiations done soon,” he said.
He said lawmakers, state officials and providers are working “to create a solution that preserves access to treatment and long-term recovery.”
Even after the announcement of more closures, ARC said it remains committed to providing substance use disorder treatment across Kentucky.
“These decisions were not made lightly, and we are dedicated to supporting our team members and communities affected by these changes,” said Vanessa Keeton, ARC vice president of marketing. “Above all, the safety and care of our clients remains our top priority. We are still available 24/7/365 for patients and families in need.”
In a statement, the Kentucky Association of Health Plans, which represents the MCOs, said the insurers are committed to working with “quality, trustworthy providers of behavioral health and substance use disorder treatment services. Health plans use many tools to monitor outcomes so that they are rewarding high-performing providers who are delivering strong results.”
ARC’s cuts are the latest setback for the fast-growing, for-profit company that last year took in $130 million in state Medicaid funds and has expanded from a single halfway house to a statewide network of recovery programs and residential centers in 24 counties across Kentucky.
ARC’s cuts are the latest setback for the fast-growing, for-profit company that last year took in $130 million in state Medicaid funds and has expanded from a single halfway house to a statewide network of recovery programs and residential centers in 24 counties across Kentucky.
In July, the FBI announced it was investigating ARC for possible health care fraud and is asking anyone with information to contact the federal agency. ARC said it stands by its services and is cooperating with the investigation.
ARC and its founder and CEO Tim Robinson has fallen under scrutiny as a high profile political donor in recent years.
A Lantern analysis by Tom Loftus showed that Robinson, his corporations and employees have made at least $570,000 in contributions to Kentucky political causes and candidates over the past decade as his company grew to about 1,800 residential beds and outpatient care for hundreds more clients.
Meanwhile, Brown said it has provided treatment for 75,000 people over the past 15 year and will continue to negotiate over the pending rate cuts.
“We are very hopeful to have these negotiations done soon,” he said.
He said lawmakers, state officials and providers are working “to create a solution that preserves access to treatment and long-term recovery.”