24 Hour Home Care plans to lay off 738 employees, according to a California Worker Adjustment and Retraining Notification (WARN) filing.
The layoffs are scheduled to take effect on Sept. 15, according to the filing.
24 Hour Home Care said the layoffs were the result of Health Net’s planned discontinuation of Personal Care and Homemaker Services (PCHS), an optional Community Support under the insurer’s Medi-Cal managed care plans, effective Jan. 1, 2027. Health Net is a California health insurer and managed-care organization.
“We are disappointed by Health Net’s decision and recognize the uncertainty it creates for affected members, caregivers and their families,” 24 Hour Home Care told Home Health Care News in an email. “We are working with Health Net, [the Department of Health Care Services] (DHCS) and other stakeholders throughout this transition to mitigate impacts and support continuity of care.”
El Segundo, California-based 24 Hour Home Care provides services to people with disabilities, Medi-Cal members who qualify for Community Supports and veterans who need assistance with daily living and personal care.
Health Net confirmed to HHCN that it planned to sunset optional Assisted Living Facility Transitions and Personal Care and Homemaker Services, effective Jan. 1, 2027. The company also said that it will extend contracts with providers of both Community Supports through Dec. 31, 2026, citing changing market conditions and discussions with DHCS.
“We will continue working closely with members, providers and care management teams throughout the transition,” Health Net told HHCN.
TEAM Services Group acquired 24 Hour Home Care in 2021. San Diego-based TEAM provides agency-based home care, household employment services, including payroll and HR solutions and financial management services for consumer-directed care. The company operates in all 50 states and employs 100,000 caregivers and household staff.
The layoffs come about five months after General Atlantic acquired TEAM Services Group from Alpine Investors in a deal reported at $3 billion, including debt.
New York City-based growth and private equity firm General Atlantic manages $130 billion in assets. Its portfolio includes health care, technology, financial services and life sciences companies.