Signify Health Announces Layoffs, Including In CT

NORWALK, CT — Signify Health announced that it would lay off 489 employees across its company, including 45 in its Norwalk office.

Signify Health is discontinuing its episodes of care service operation. Layoffs will occur at its Texas, New York, South Dakota, and Connecticut offices, according to a Worker Adjustment and Retraining Notification Act filing.

The company's Norwalk office will remain open, according to Hearst Connecticut.

The episodes of care single payment model includes one cost for all services related to a medical episode, such as a knee replacement. Signify Health announced it would wind down episodes of care last month in order to focus on its home and community services business.

Signify Health made the decision to exit the episodes of care business after the Centers for Medicare and Medicaid Services lowered target prices for episodes, which reduced the opportunity for cost savings, the company said in a statement. Restructuring and severance costs were expected to total between $25 and $35 million.