The job cuts come after HCSC posted $176.1 million in losses for the first three quarters of 2015, according to the article. Like many other insurance plans that have reported financial downturns in the last two years, HCSC cited the increased costs associated with paying for less healthy customers under the Affordable Care Act.
HCSC spokesman Greg Thompson declined to say how many employees were let go or in which departments they worked, however a company memo obtained by Crain’s suggests the group eliminated maintenance positions in its IT department.
“We determined we must shift the focus of HCSC employees from routine maintenance activities to more strategic services that develop new capabilities that ultimately improve service to our customers,” HCSC CIO and senior vice president Steve Betts wrote in the Feb. 2 memo, reports Crain’s.
HCSC instead has signed outside contracts with consultancies Accenture and Cognizant for maintenance and support services, according to Crain’s.
HCSC is the parent of Blue Cross health insurance plans in five states, including Illinois, Montana, New Mexico, Oklahoma and Texas.
HCSC is one of the largest insurers in the country, having enrolled more than 15 million members at the end of 2015.
More articles on finance:
Opinion: Why the ACA should not be replaced with a single-payer system
Insurers, air ambulance companies dispute costs in legislative spotlight
4 recent hospital outlook and credit rating actions
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
