COLUMBUS, Ohio (COLUMBUS BUSINESS FIRST) – Although its still planning to hire 1,000 caregivers statewide this year, Circulo Health has cut about 20% of its staff as the startup drops its original business model to create a Medicaid managed care plan.

Instead, Circulo will focus solely on in-home and community-based care for individuals with intellectual and developmental disabilities, President Jeff Grahling said in a LinkedIn post announcing the restructuring last week.

“This is a truly painful announcement for us,” Grahling said in the post. “This difficult decision stems from market trends that led us to rethink our original focus on creating a new kind of Medicaid insurance company.

“Many of the employees who are leaving us were hired to support that purpose, which we are no longer pursuing. With renewed energy and commitment to a singular focus, Circulo Health’s mission is to improve the health and independence of people with I/DD, providing for a broad range of their social, behavioral and physical health needs.”

So far Circulo has hired more than 200 of the hoped-for 1,000 providers, Grahling said.

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