Walnut Creek, Calif.-based John Muir Health is laying off 164 employees in Concord ahead of a planned sale of its home health services division to Cornerstone Home Healthcare.
John Muir announced in October that it would transfer its home health assets to a company currently owned by Cornerstone; that transaction is expected to close Jan. 1. Once the deal is closed, Cornerstone will be the majority owner and John Muir will operate a 40% minority stake, a spokesperson for the health system told Becker's on Dec. 6.
According to WARN documents filed with the state, 164 John Muir Home Health employees will be laid off by Dec. 29, but they have the opportunity to apply to the new company under Cornerstone.
"We greatly value the work they have done on behalf of John Muir Health and we hope that they will continue to support local patients and families in our community," the health system spokesperson said. "If our current home health employees apply for an open position listed by Cornerstone and do not receive an offer, they will be eligible to receive a severance package in accordance with John Muir Health severance guidelines."