Healthways executives have notified North Carolina officials that they plan to shut down a support center in a suburb of Raleigh, N.C., by the end of February. The move will cost 150 people their jobs, which is about 6 percent of the company's payroll.
The Triangle Business Journal says the 50,000-square-foot Morrisville site performed work primarily for BlueCross BlueShield of Massachusetts. Word of its closure comes six and a half years after the company said it would set up one of its care coordination centers in the Raleigh area. A company executive tells state representatives "changing business circumstances" are the reason it is closing down the facility.
Healthways has been able to announce numerous new contracts and extensions in the second half of this year, but its shares (Ticker: HWAY) took a tumble two months ago when CEO Ben Leedle told investors profitability would suffer as it built up its infrastructure for those jobs. The stock is still up about 50 percent this year.