Optum To Lay Off 572 In NJ, Closing Mental Health, Some Pediatrics And Specialty Offices

Optum, a health provider owned by UnitedHealth that took over numerous medical practices in New Jersey in the past several years, will lay off as many as 572 workers over three months, according to notices filed with the state.

UPDATE: See Reactions From Patients And Officials Here

UPDATE: One NJ City, Set To Lose Its Pediatricians, Will Get To Keep Some

The company began sending letters to patients on Monday informing them of medical practices that will close as of Nov. 30 — including some pediatric and specialty offices, and all of the company's mental health practices statewide.

One email received by patients on Monday said Optum will cease offering behavioral health services after Nov. 30.

Another message received by patients in Hudson County, one of the most densely populated counties in the country, said four of the company's pediatrics offices will close as of Nov. 30.

According to four notices filed with the state of New Jersey on Oct. 1 — required in advance of mass layoffs — Optum Care will lay off 390 employees statewide, with most paid through Feb. 2. Separately, Optum Medical Care will lay off 122 employees just in Secaucus by February and March. And Optum Select Services and Optum Management are laying off 60 workers total.

"We want to let you know that we've made the difficult decision to no longer offer Behavioral Health services in New Jersey," the company said in that email sent to patients on Monday. "After [Nov. 30], these clinicians will no longer be part of Optum Medical Care and all scheduled appointments will be canceled."

A separate email sent Monday night listed nine gastroenterology offices in Bergen, Essex, and Ocean counties that will close by Nov. 30, with more than a dozen doctors listed that will no longer be employed by the company.

Other emails sent early Tuesday morning listed podiatry and other specialty offices in North Jersey.

A Patch reader in South Jersey forwarded an email saying three family medical practices in Camden County are closing, including the office where she was scheduled for an annual checkup in December. That appointment is now canceled.

"Blood work? Mammogram?" she asked. "What can you do without a primary care physician?"

Optum was part of a restructuring earlier this year by its parent company, UnitedHealth, with some saying they had expanded too rapidly or taken over too many practices. Bloomberg reported in late October that the Minnesota-based company had just acquired its second chief financial officer in two months.

'I Was Shocked'

Parents said they were disappointed, especially after forming decades-long relationships with the doctors.

"I was shocked about it," said Emily Jabbour, a Hoboken councilwoman and mother of two, on Monday night. Optum, which took over Riverside Pediatrics in 2022, is closing four busy pediatrics offices in Hudson County, including both of their locations in Hoboken.

Jabbour said she had been taking her kids to Riverside and then Optum for more than a decade, and is concerned for the community.

"I think it's really disappointing," she said. "Whether you see them for regular care or emergency care...when you don't have a strong network of pediatric doctors in a city, you become a pediatric desert."

She said she had stuck with the practice through various takeovers because she likes the doctor her two children have been seeing.

"He said he's been informed that he's completely out of a job two months from now," she said.

She added, "I've had a couple of parents reaching out to me, saying, 'Where does this leave us?' And I'm trying to find out."

Optum said a pediatrics office in downtown Jersey City will remain open. But Jabbour said she's not sure they'll be able to absorb all of the patients from four practices. The Secaucus practice had been open late for emergencies.

Other parents echoed the worries.

"I'm...concerned that if one of my kids gets sick this winter, getting a doctor's appointment locally will be absurdly hard," said Cynthia Link, a mom in Hoboken. "Hearing 'our next available appointment is in three weeks' when your kid is home sick from school is useless, and I'm afraid will be the normal response this winter."

Jabbour said she had reached out to at least one state legislator to discuss the implications.

Optum Responds

When asked how many medical offices in New Jersey are closing, and the reasoning behind the cuts, an Optum spokesperson declined to give a number.

She released a statement Monday: "As part of our commitment to making health care more affordable, we regularly review our services, footprint and staffing levels to ensure they meet the needs of the people we serve, our business and evolving market dynamics. We will continue to provide pediatric, primary care, cardiology, rheumatology and urgent care in certain locations across New Jersey. We are providing clear information and support to our patients to ensure uninterrupted care."

Patients who want to request their medical records can visit optum.com/record-request-RIV or email MedicalRecordsRIV@riversidemedgroup.com, they said.

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