Passport Health Plan, a health insurance company controlled by healthcare providers in Louisville, Ky., has cut its staff by 29 ahead of plans to sell a majority stake to health plan administrator Evolent Health, according to the Louisville Courier Journal.
Passport is a nonprofit, community-based health plan that manages Medicaid services in Kentucky.
In May, the company announced it will sell 70 percent of its stake to Evolent for $70 million. Evolent said it will invest money into Passport, which is controlled by the University of Louisville and two affiliates, Norton Healthcare and the Louisville-Jefferson County Primary Care Association.
Passport spokesperson Ben Adkins told the Courier Journal the staff cuts are "a difficult but necessary step to reposition the organization for the long-term future."
Passport has been hurting financially amid state Medicaid payment cuts.
But Mr. Adkins expressed optimism about the Kentucky health plan's future.
"Looking ahead, we see a bright, exciting future for Passport and are confident in our ability to drive job creation in Louisville and continue delivering excellent service to our community and throughout the commonwealth," he told the Courier Journal.
Evolent and Passport officials have said they hope to revive construction of a new Passport headquarters and health campus with help from an outside developer after the Evolent sale, the newspaper reported.
The sale is expected later this year.