All-States Medical Supply has laid off eight employees due to soaring audit rates and recent cuts in Medicare reimbursement, according to a release.
When All-States won a contract as part of the national mail-order program for diabetic supplies in 2013, it planned to hire 50 more employees to meet an increased in demand.
But now, as the company is dealing with the steep cuts associated with the program, audits hold hundreds of thousands of dollars in limbo, said President Jason De Los Santos in the release.
“The layoffs were a devastating decision for us, but one we had to make to keep our head above water,” he said.
All-States is diversifying into retail stores and therapeutic shoe fittings, as well as adding an on-site pharmacy to take private insurance for diabetic supplies, according to the release.