Integrated Health Network of Wisconsin, an accountable care organization based in Brookfield, has laid of 21 employees as a result of a decision to shift certain functions from ACO administrators to participating healthcare organizations, according to the Milwaukee Business Journal.
"IHN is in the process of adjusting operations and staffing across the organization to most efficiently and effectively meet the network's evolving strategic needs," Kathy Allen, vice president of marketing and communications, said Tuesday in an emailed statement to the Milwaukee Business Journal.
The job cuts, which affect 40 percent of employees, are the result of recent strategic planning sessions with the ACO's board of managers. IHN now has 29 employees remaining at its Brookfield office.
"It was determined that owner-member health systems and health plans now have the capabilities to absorb many functions IHN provides as they continue the transition to value-based care," Ms. Allen said, according to the report. These functions can be performed by the health systems, some of which operate their own health plans and population health management programs.
Staff reductions began in early September and affect all levels and departments of the ACO. Many of the employees' whose positions were cut are being considered for other jobs within health systems that are members of the ACO, according to Ms. Allen.
IHN anticipates additional workforce adjustments, with final counts to be determined as a new operating model is implemented over the next nine to 12 months, Ms. Allen said, according to the report.
IHN CEO Kurt Janavitz was not available for a comment Tuesday, Ms. Allen told the Milwaukee Business Journal.