California Home‑Care Provider Cuts 700 Jobs Amid Policy Shift

In a move that sent ripples through the state’s caregiving sector, Los Angeles‑based 24 Hour Home Care said it will permanently cut 738 jobs, effective Sept. 15. The company, which helps veterans and people with disabilities live independently, said the layoffs are a direct fallout of Health Net’s plan to discontinue its Personal Care and Homemaker Services (PCHS) program on Jan. 1, 2027.

“We’re disappointed by Health Net’s decision and recognize the uncertainty it creates for affected members, caregivers and their families,” the firm told Home Health Care News. It’s a blunt, painful statement—but not entirely surprising given how intertwined the two organizations are.

For a business that employs roughly 30,000 caregivers across California, letting go of 738 workers is a noticeable dent, though the numbers are still a small fraction of the total workforce. Still, each name on that list represents a family, a paycheck, and a set of responsibilities that now hang in the balance.

The layoff follows a string of recent reductions in the Golden State’s health‑care arena. Late August saw Stanford Health Care file notices to shed about 95 positions, mostly in non‑clinical IT and digital health. A week later, John Muir Health announced it would trim 75 jobs across sites in Walnut Creek, Concord and Pleasanton.

Earlier this year, the Los Angeles County Department of Public Health was forced to shut down clinical services at seven sites after a $50 million funding shortfall. Around the same time, UC Irvine Health cut 150 roles as part of a broader “strategic restructuring.” The trend suggests a widening squeeze on providers that rely heavily on third‑party insurers.

While 24 Hour Home Care has expressed disappointment, the company has also hinted at exploring alternative payment models and partnerships to keep essential services alive for the vulnerable populations it serves. Whether those efforts will offset the loss of the Health Net contract remains to be seen.

For now, the 738 displaced employees face a tough job market, and the families depending on their care are left navigating a shifting landscape of coverage and support.