OMNI HEALTHCARE: Merges Offices in Search of Efficiency
As part of an "aggressive restructuring," Omni Healthcare is merging its customer service and claims departments to "increase efficiency," the Sacramento Business Journal reports. Omni spokesperson Susan Bitar said most "of the savings will come from space consolidation," mainly at the Stockton offices, which should save $1.2 million over five years. A total of 52 jobs will be moved from Stockton to Sacramento, but no jobs will be cut. The Business Journal reports that after pouring more than $20 million into Omni, parent company Sutter Health hired the Florida-based Hunter Group "to turn things around." While the group "has a reputation for slashing staff to improve efficiency," Omni is trying to retain its workers. "The changes make a great deal of sense, and imply that Sutter -- at least in the short or medium term -- is making a commitment to find a way to make Omni more cost effective," said health care consultant Albert Lowey-Ball. But Omni's future remains "uncertain," according to the Business Journal. The HMO expects a significant net loss in 1998, after losing $297,694 on revenue of $144.9 million in the first three quarters. Omni lost $200,000 on revenue of $175 million in 1997. Membership continues to decline as the HMO seeks to shed members in "high-cost rural markets where the HMO is losing money." On Jan. 1, Omni dropped 3,600 members in Del Norte and Humboldt counties, bringing its total membership to less than 138,400 (Robertson, 2/1).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.