Hawaii Medical Service Association plans to outsource some work next year in a move expected to result in around 285 employees being reassigned, hired by a contractor or laid off.
The state’s largest health insurer recently signed a contract with Firstsource Solutions Limited to modernize HMSA technology and business processes following a comprehensive review largely aimed at improving workplace efficiencies, meeting regulatory requirements and reducing health care costs.
HMSA, a nonprofit, informed the state Insurance Commissioner and the Department of Labor and Industrial Relations that about 285 employees may be affected, with most either working in new roles at HMSA or for Firstsource in Hawaii.
Some workers, however, are not expected to be retained and would receive financial assistance and job placement support, HMSA said.
“Ensuring that Hawaii families and communities have access to high-quality, affordable health care is our top priority,” Mark Mugiishi, HMSA’s president and CEO, said in a statement. “By making this investment to streamline key areas in our business, this new partnership will allow us to continue to improve our service to our members and create a more sustainable future for health care in Hawaii.”
Mugiishi added that HMSA notified affected employees as soon as the contract with Firstsource was signed, and that the insurer is working to support them during the transition period.
Changes related to Firstsource are expected to happen over several months starting next year.
HMSA operates a health plan covering more than half of Hawaii’s population, and has around 1,500 employees.
Firstsource, based in Mumbai, India, provides business process management services to various industries including health care and banking. The company employs over 28,000 people across the United States, United Kingdom, India and the Philippines.