Preferred Family Healthcare (PFH) has informed state agencies that it will be closing its Arkansas operations in October.
The Springfield, Mo.-based healthcare company informed the Arkansas Department of Human Services that it will cease business in Arkansas on Oct. 12.
In recent months, PFH has suffered corruption scandals involving employees and Arkansas legislators, which resulted in convictions and guilty pleas. One former PFH executive, Robin Raveendran, has been charged with two felony counts of Medicaid fraud.
PFH has attempted to sell its Arkansas clinics to TrueNorth, a Russellvile-based mental-health services provider earlier this year. However, the discussions fell through.
Preferred Family Healthcare provided care to approximately 5,200 patients across 47 Arkansas facilities. According to the Northwest Arkansas Democrat-Gazette, the PFH parent company will be responsible for transferring care of the patients to other Medicaid providers.
It is expected that many employees will lose their jobs as a result of PFH’s Arkansas closure. The Northwest Arkansas Democrat-Gazette reports the company employed around 700, but other reports have listed the number as high as 4,000.