WellCare's 208 Layoffs Include Jobs In Tampa
By JEROME R. STOCKFISCH
The Tampa Tribune
Published: May 23, 2008
TAMPA - WellCare Health Plans, an administrator of government-sponsored health care plans that is under investigation by the U.S. attorney's office, on Thursday laid off 208 employees, including some at its Henderson Road headquarters.
WellCare, whose offices were raided by federal agents in October, said in a statement that the move was in response to "changing business conditions."
Most of the reductions were in Florida and New York Medicaid sales operations, with some corporate and regional support functions also affected.
A spokeswoman could not pinpoint how many of the jobs were in Tampa.
The job losses represented about 5 percent of WellCare's overall work force, bringing the company to a total of 3,800 employees.
The U.S. attorney's office in Tampa has not explained October's raid or what it sought with search warrants. No arrests have been made.
WellCare shares plummeted from more than $120 to the $20 range after the raid, and the company's three top executives resigned.
The shares have recovered somewhat since then after analysts concluded that the investigation appeared to be focused on WellCare's Florida Medicaid business and was not a widespread fraud issue. WellCare serves 2.4 million customers in several states.
Its shares closed Thursday at $53, up $1.13.
Wall Street analysts have speculated that WellCare might be an acquisition target of one of the managed-care industry's giants, but spokeswoman Amy Knapp said Thursday that the company is not positioning itself for a sale.
The layoffs come five months after the company adopted a retention plan to keep key employees onboard while the investigation was under way.
According to documents filed with the Securities and Exchange Commission, WellCare offered bonuses of 20 percent to 50 percent of base salary to substantially all of its employees to stay on through this calendar year.
That program cost $35 million, the company said.
WellCare has not been filing financial reports since October's raid, saying directors have been distracted by the investigation.
A filing with the SEC last week said that increases in medical benefits expenses and administrative costs relating to the case, including legal fees, would likely lead to a net loss for the first quarter of 2008.
Reporter Jerome R. Stockfisch can be reached at (813) 259-8402 or jstockfisch@tampatrib.com.
The Tampa Tribune
Published: May 23, 2008
TAMPA - WellCare Health Plans, an administrator of government-sponsored health care plans that is under investigation by the U.S. attorney's office, on Thursday laid off 208 employees, including some at its Henderson Road headquarters.
WellCare, whose offices were raided by federal agents in October, said in a statement that the move was in response to "changing business conditions."
Most of the reductions were in Florida and New York Medicaid sales operations, with some corporate and regional support functions also affected.
A spokeswoman could not pinpoint how many of the jobs were in Tampa.
The job losses represented about 5 percent of WellCare's overall work force, bringing the company to a total of 3,800 employees.
The U.S. attorney's office in Tampa has not explained October's raid or what it sought with search warrants. No arrests have been made.
WellCare shares plummeted from more than $120 to the $20 range after the raid, and the company's three top executives resigned.
The shares have recovered somewhat since then after analysts concluded that the investigation appeared to be focused on WellCare's Florida Medicaid business and was not a widespread fraud issue. WellCare serves 2.4 million customers in several states.
Its shares closed Thursday at $53, up $1.13.
Wall Street analysts have speculated that WellCare might be an acquisition target of one of the managed-care industry's giants, but spokeswoman Amy Knapp said Thursday that the company is not positioning itself for a sale.
The layoffs come five months after the company adopted a retention plan to keep key employees onboard while the investigation was under way.
According to documents filed with the Securities and Exchange Commission, WellCare offered bonuses of 20 percent to 50 percent of base salary to substantially all of its employees to stay on through this calendar year.
That program cost $35 million, the company said.
WellCare has not been filing financial reports since October's raid, saying directors have been distracted by the investigation.
A filing with the SEC last week said that increases in medical benefits expenses and administrative costs relating to the case, including legal fees, would likely lead to a net loss for the first quarter of 2008.
Reporter Jerome R. Stockfisch can be reached at (813) 259-8402 or jstockfisch@tampatrib.com.
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