Posted August 12, 2018 07:24:23One of the biggest health care organizations is preparing to take a major hit from the RMA, as it is expected to go bankrupt this year.
AstraZeneca, the largest healthcare provider in the US, announced it would close all of its healthcare services operations as part of a restructuring plan.
AstraZenec’s CEO Michael Pfleger says that his company’s healthcare business is in serious decline.
“We’ve had a very hard year,” he told CNBC on Wednesday.
“We’ve lost revenue of $4.5 billion.
The cost of doing business has increased dramatically.”
In a statement released Wednesday, the company says the restructuring plans include “an impairment charge of $1.8 billion, an impairment charge related to a $1 billion impairment liability, and a restructuring charge of approximately $1 million.”
The company’s restructuring plan will save it about $1,800 in annualized expenses over the next three years, according to a statement from Astra Zeneca.
The company expects to save up to $979 million through 2019, including a $600 million net write-off.
A spokesman for the US Food and Drug Administration told CNBC that the RDA is expected “to be fully implemented in the coming months” but declined to comment on when the transition will be completed.
A number of health care companies have also been struggling financially in recent years, including Cigna, UnitedHealthcare, Anthem, and WellPoint.
The Associated Press contributed to this report.