Last week One Call Care Management conducted another round of layoffs, with most coming from field sales. I’ve heard a few operations folks were also let go.
Word is the field force reduction is driven by two factors. First, former CEO Joe Delaney hired approximately 20 reps with NO workers’ comp experience earlier this year in what has been characterized as an “experiment”. Evidently, the experimental stage is over – these reps are gone.
Second, after keeping the sales staff aligned with products and services (one for DME, another for imaging, a third for PT…), OCCM decided this wasn’t working. Going forward, reps will be assigned to specific customers/prospects, and will have to be up to speed on all OCCM products.
Sources indicate that out of 118 reps, 38 will be terminated. It appears some will get with severance and non-competes will be enforced, however I’ve been told OCCM will consider letting terminated reps out of their non-competes on a case-by-case basis.
That would be the right thing to do.
Interestingly, OCCM made the layoff and change in focus while the head of field sales position is open – as it has been for some time. I’m not sure how this transition from seller-of-one-service to seller-of-all-services is going to progress without someone in charge over the long term. This kind of change isn’t simple, requires ongoing training and evaluation, as well as coordination with the service delivery folks to ensure the inevitable glitches and misunderstandings are handled quickly.
For a company with more than 3000 employees, a reduction of slightly more than one percent isn’t a big deal, and may actually make sense, IF those reps are really capable of “repping” all OCCM products and services. And if they are treated equitably and given the opportunity to work in the industry.
Going forward, I’d expect we’ll see additional consolidation at OCCM. The company has multiple domestic call centers, and as OCCM off-shores various functions (clinical, scheduling, A/R) the need for US-based staff will likely decrease.
What does this mean for you?
Hopefully new opportunities for the newly-unemployed.