![]() This led to billing and reimbursement headaches for the company and patients alike. Those affected by the July layoffs were given 60-days notice.įoresight Mental Health was also hamstrung by a hodgepodge of internal systems and applications, sources, including Serrao, told BHB. Then, on July 11, the company announced layoffs affecting 80 positions these, too, were administrative positions. On April 20, Foresight laid off 120 people among its administrative team, effective immediately. “This model is unsustainable, and we had to make a hard change.” “The speed of growth came at the expense of optimizing the overall business operations,” Milford said in the email. ![]() Foresight Mental Health overstaffed on the administrative side, for example, in an attempt to boost its growth, Milford said in an email obtained by BHB announcing the first round of layoffs in April. In part, the layoffs were to correct certain workforce investments. The company brought in just north of $40 million in 2021, Serrao said, but he declined to discuss the company’s operating losses. “The systems they were using to run the business and the point of ‘growth at all cost’ and just throwing bodies at problems led them to be in this position, where literally they were going to run out of capital,” Greg Serrao, Foresight’s new CEO, told Behavioral Health Business.įoresight was “probably 10 weeks away from no cash” when he joined in April, he noted. However, by the end of 2021, expenses growth had outpaced revenue to such a degree that Foresight would have run out of capital by this summer, were it not for some dramatic action over the last few months. Why the layoffs happenedįoresight Mental Health had big plans for a national expansion, recruiting additional providers and more. In February, former co-CEOs Milford and Hapeman told Behavioral Health Business that the startup would have 1,000 mental health practitioners in just a few months and would soon start caring for Medicare and Medicaid patients.
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