Athenahealth Job Cuts to Hit Atlanta Client Support Center

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Athenahealth Job Cuts Hit Atlanta Office

Just days after the healthcare IT company athenahealth, Inc (NASDAQ:ATHN) shared plans to slash its workforce, the first string of layoffs has hit its employees in Georgia. Athenahealth is closing its client support center in Atlanta, GA, leading to dozens of athenahealth job cuts in the city.

The company has filed a layoff notice with Georgia Department of Economic Development under the Worker Adjustment and Retraining Notification (WARN) Act, which reveals that 61 jobs will be lost at the Atlanta site ahead of its closure.

The nature of the job cuts is permanent and the layoffs will go into effect on December 18. Meanwhile, the final date of closure of the site has not yet been revealed. It is expected that additional athenahealth job cuts will follow in the days after these initial 61 layoffs have taken place, until all employees at the site are sent home.

The Atlanta client support center has reportedly employed more than 500 employees at one time, after athenahealth CEO Jonathan Bush vowed to bring healthcare sector jobs to the city. CEO Bush promised city officials back in 2013 that his company would create more than 500 jobs in the next five years. The CEO did make good on his promise but the recent cost pressures have forced him to undertake these dire measures.

Athenahealth Job Cuts Follow Industry Headwinds

Athenahealth announced a major restructuring move earlier last month after it reported very disappointing third-quarter earnings. The company reported a drop in its operating and net incomes and owed it to rising costs and dipping revenue.

The healthcare company shared plans to cut its workforce by nine percent—a move that is expected to affect about 500 athenahealth employees. The athenahealth CEO said at that time that the restructuring was being undertaken to make the company more “nimble and efficient.”

Athenahealth job cuts follow the mounting uncertainty in the healthcare industry as hospitals remain uncertain about the future of Obamacare under the Trump administration.

The Republicans in power want to slash funding to the Medicaid and Medicare programs under which many of these hospitals receive insurance reimbursements—their primary source of revenue. In the event of funding cuts, many of these hospitals will be forced to cut back their expenses, typically beginning by scaling back their expensive IT needs.

Athenahealth, which is one of the most prominent providers of healthcare IT solutions, is already beginning to face sales pressures as the industry landscape becomes increasingly challenging.

 

Sources

WARN WEBSITE DATA LISTINGS,” Georgia Department of Economic Development, last accessed November 6, 2017.

Athenahealth closing Atlanta Client Support Center, laying off 61 workers,” Healthcare IT News, November 6, 2017.

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