Rotech cites lower Medicare reimbursements, lays off 61 in Charlotte

Rotech’s Charlotte office is at 207 Regency Executive Park Dr, Suite 200.
Rotech’s Charlotte office is at 207 Regency Executive Park Dr, Suite 200. Google Maps

Rotech Healthcare is laying off 61 workers in its Charlotte office, citing lower Medicare reimbursements that will take effect in January.

The company said affected employees handle customer service and medical supply sales at its call center at 207 Regency Executive Park Drive, Suite 200. The job cuts represent 56 percent of Rotech’s local workforce.

Medicare will cut reimbursements by 40 percent to 50 percent for several products that Rotech provides, including physician-prescribed oxygen, oxygen equipment, positive airway pressure devices and other durable medical equipment and services, Rotech said in a statement.

All affected employees have been notified and the cuts are effective Dec. 22, according to a Worker Adjustment and Retraining Notification Act (WARN) notice filed with the N.C. Commerce Department. Under federal law, companies must file WARN notices when they make mass layoffs, close plants and change ownership.

“We’d love to keep them, but it’s a Medicare issue,” Steve Burres, Rotech’s associate general counsel, told the Observer. He added the company’s layoffs are not connected with its bankruptcy filing three years ago.

Orlando, Fla.-based company entered the Charlotte market in 2013.

Katherine Peralta: 704-358-5079, @katieperalta