Mass Layoffs in Rehab Therapy (Fall 2019)

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This story originally broke via Modern Healthcare.

Thousands of physical, occupational and speech therapists have been laid off as skilled-nursing facilities transition to a new payment model that kicked in Tuesday.

Dozens of these therapists have emailed Modern Healthcare saying they have been laid off or had their wages cut as a result of the new patient-driven payment model, which is akin to bundled payments and based on patient assessments and acuity rather than the volume of therapy services. Industry observers expect more fallout as certain providers gamed the system to maximize therapy hours, which are now likely going to be a fraction of what they were under the resource-utilization group model.

One national SNF chain, Genesis HealthCare, is said to have cut its rehabilitation staff by 30%, which translates to more than 4,000 workers, according to company employees and experts with access to staffing information.


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