Highmark reportedly cuts 98 jobs, citing improved operating efficiencies
Most of the layoffs involved positions at subsidiary enGen that provides back-office functions for health plans.
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Highmark is laying off 98 people, with all but three of the jobs at enGen, an information technology subsidiary, according to the Pittsburgh Post-Gazette.
The job cuts were reportedly spurred by improved operating efficiencies.
This recent round of layoffs at Highmark brings the total number of jobs lost at the Pittsburgh-based organization to 357 for the year, up from last year's 259 total, the report said.
"We are focused on building the workforce of future, which requires identifying talent gaps, investing in in-demand roles, such as nursing, and adapting technologies, such as AI, to better anticipate demand and drive value for consumers," Highmark said by statement. "We are also looking for opportunities to transition/centralize/shift work that enables our employees to leverage their skill sets and work at the top of their license."
WHY THIS MATTERS
The enGen subsidiary, founded in 2014 as HM Solutions, provides health insurance plans with integrated technology platforms that handle the back-office functions of claims management and other administrative functions, according to the Pittsburgh Post-Gazette report.
"Reinventing health means reinventing how our organization operates," Highmark said. "Highmark Health is actively transforming to meet the changing needs of members and our communities through our Living Health model while maintaining financial strength and stability. This transformation requires that we continue to reimagine and simplify our operations to effectively and efficiently achieve the quintuple aim -- better patient experience, clinician satisfaction, health equity and health outcomes, with lower costs.
THE LARGER TREND
Highmark is a non-profit health insurance company that operates in Pennsylvania, Delaware, West Virginia and New York. It offers plans for individuals, families, businesses and Medicare.
Highmark's parent company is the Allegheny Health Network, a 14-hospital system also based out of Pittsburgh.
In March, Highmark reported a 5% year-over-year increase in revenue. The organization attributed the results to its insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, which it said are driven by steady membership, more affordable product options and better health outcomes, on top of positive investment market performance. Additionally, Allegheny Health Network experienced increased patient volumes over the prior year in nearly all care delivery areas.
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