Another round of layoffs done at Addiction Recovery Care
By Roberta Cantrell
BSN Editor
For the third time Addiction Recovery Care, or ARC, has cut staff and reduced its workforce by 105 employees with an additional 300 who received adjustments to compensation, job duties or both according to Matt Brown, ARC chief administration officer. Brown said ARC is continuing to cut staff and expenses, citing “significant reimbursement cuts” by some private insurance companies that manage state Medicaid payments.
The amount from this round of cutbacks along with the two from September and October bring a reduction total in ARC’s workforce of 323 employees which is close to a quarter of its former number of employees according to Brown.
ARC has also closed some of its programs and facilities and made changes to others in light of the 30 percent cutbacks from MCO’s that contract through Kentucky Medicaid.
“This reduction in force and staff realignment is a direct result of multiple layers of significant reimbursement cuts for addiction and mental health service providers like ARC,” said Brown. “The reduction in force is not a decision that was made lightly, but one that was made out of necessity.”
A spokesman for the Kentucky Association of Health Plans, an industry group, said in a statement last month, that 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.”
Medicaid is a major source of funds for addiction treatment in Kentucky, last year spending about $1.2 billion. ARC took in about $130 million in Medicaid funds.
In an email sent to The Big Sandy News on Monday, Nov. 4, Vanessa Keeton, who asked that she be attributed to as ARC’s spokesperson instead of Kyle Collier sent this official statement “at Addiction Recovery Care (ARC), our mission to provide compassionate, comprehensive care for individuals facing substance use and mental health challenges remains as steadfast today as it did when we were established in 2008.
Last week, we received challenging news, gaining near-final (or possibly final) clarity from Kentucky Medicaid and two of our largest payers regarding significant reimbursement cuts of approximately 30%. While these reductions will affect our organization overall, their most significant impact will be felt by long-term recovery programs across the state. Unfortunately, this news is part of an industry-wide change that dozens of addiction treatment providers in Kentucky will soon face as well.
While we cannot control the landscape dynamics for addiction and mental health services across the state, ARC is committed to adapting our programs to continue advancing our award-winning, high-quality level of care for years to come. Unfortunately, these changes necessitate difficult decisions regarding our staff. We understand this is an incredibly challenging time for the entire addiction treatment services community.
ARC is taking every possible step to support affected team members during this transition. Despite these challenges, we remain dedicated to delivering life-saving, life-transforming treatment services and ensuring that Kentucky continues the strong momentum we’ve achieved in combating the addiction crisis.”
While ARC has been forced to cut costs, it remains committed to its mission of providing treatment for alcohol and drug addiction, Brown said.
“We are still very committed to our nearly 1,900 patients and our remaining employees,” he said.