LITTLE ROCK, Ark. – Arkansas Preferred Family Health (PFH) notified the Arkansas Department of Human Services (DHS) that it will be ceasing their Arkansas operations by October 12.
Earlier this year, multiple PFH employees have been wrapped up in Medicaid Fraud allegations. Including Robin Raveendran, who is charged with $2 million in Medicaid Fraud.
The company currently employs 4,000 Arkansans at 47 sites around the state.
In a letter sent to employees today, a majority of workers could lose their jobs.
PFH states in the letter that they have been in discussion with TrueNorth in their desire to assume PFH’s Arkansas operations, along with PFH’s desire to make a smooth transition for clients and employees.
PFH writes, “…however despite everyone’s best efforts, we have reached a point where it is clear transferring all our services is not feasible under mutually agreeable terms.”
“Since June when our DHS contracts were terminated, and our Arkansas Medicaid payments were suspended, we have tried diligently to find a path forward that seamlessly transferred our clients and employees to new providers who could continue to support their needs. We are disappointed that , at this time, this has not occurred.”
There may be certain locations that will close at a later date to ensure client care and appropriate transitions occur.