California Home‑Care Provider Trims Workforce by 700 Amid Insurance Changes

In a move that caught many employees off guard, Los Angeles‑based 24 Hour Home Care disclosed it will be letting go of 738 workers – roughly 2.5 % of its staff – effective Sept. 15. The cuts are being described as permanent, meaning those positions won’t be reinstated later on.

The company, which provides daily living assistance and personal care to veterans and individuals with disabilities, currently employs around 30,000 caregivers across the Golden State. Its sudden decision stems largely from a shift in policy by health‑insurance giant Health Net, which announced it will discontinue its Personal Care and Homemaker Services (PCHS) program on Jan. 1, 2027.

“We are disappointed by Health Net’s decision and recognize the uncertainty it creates for affected members, caregivers and their families,” 24 Hour Home Care told Home Health Care News. In plain English, the loss of a major payer for certain services means the company can no longer sustain the same level of staffing for those roles.

It’s not just this one organization feeling the sting. Over the past few weeks, several other California health providers have rolled out their own reduction plans. Stanford Health Care filed notices in late August to shed 95 jobs, mainly in non‑clinical IT and digital health departments. Meanwhile, John Muir Health announced a 75‑position cut affecting sites in Walnut Creek, Concord and Pleasanton.

The layoffs come on the heels of earlier turmoil in the state’s health landscape. In March, the Los Angeles County Department of Public Health shut down clinical services at seven locations after a $50 million funding shortfall. That same month, UC Irvine Health trimmed 150 roles as part of a “strategic restructuring” across its system.

For the 738 workers slated to exit 24 Hour Home Care, the news is understandably unsettling. Many have spent years building relationships with the veterans and disabled clients they serve, and the abrupt nature of the announcement leaves little time for transition. While the company says it will provide severance and outplacement assistance, the broader impact on California’s home‑care ecosystem remains to be seen.

Industry analysts suggest that the ripple effect of insurers pulling back on certain service lines could spark further job reductions, especially in areas where private payers dominate. As Health Net’s policy change looms, other providers may have to rethink how they structure contracts and allocate staff.

In the meantime, families relying on home‑care services are left wondering whether the remaining workforce can maintain the level of personalized attention they’ve come to expect. The situation underscores a growing tension between insurance economics and the on‑the‑ground realities of caring for some of the state’s most vulnerable residents.