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ARC laying off staff, repurposing facilities amid impending reimbursement cuts

Addiction Recovery Care

Treatment provider Addiction Recovery Care (ARC) is laying off an undisclosed amount of workers and making changes to some of its facilities ahead of impending reimbursement rate cuts to Medicaid.

ARC is the largest drug and alcohol addiction treatment provider in Kentucky.

The layoffs will affect ARC’s workforce of 1,350 people. The company says they’re supporting those affected during the transition.

The company is also transitioning four of its facilities at its Louisa headquarters to housing for students receiving vocational training. It’s moving clients formerly housed there to other facilities.

A fifth facility in Owsley County is undergoing renovations and will reopen next year.

A spokesperson declined to say just how many employees and clients are being affected by the changes, because of respective personnel and medical privacy concerns.

The treatment provider is currently under investigation by the FBI for possible health care fraud. ARC says the layoffs are unrelated to the investigation.

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Shepherd joined WEKU in June 2023 as a staff reporter. He most recently worked for West Virginia Public Broadcasting as General Assignment Reporter. In that role, he collected interviews and captured photos in the northern region of West Virginia. Shepherd holds a master’s degree in Digital Marketing Communication and a bachelor’s in music from West Virginia University.
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