The Providence Service Corp., which manages subsidiaries and investments primarily in the health care services industry in the U.S. market and workforce development services internationally, is undergoing a reorganization that will see it move out of its Stamford headquarters in favor of Atlanta.
Providence will be integrating its activities and function into its largest and most successful subsidiary, LogistiCare. As a result, about 30 employees at 700 Canal St. in Stamford and at a satellite office in Tucson, AZ will be offered positions in Atlanta, where LogistiCare will continue to be based.
The company expects implementation costs during the 12-month process to negatively affect earnings. Once completed, the consolidation is expected to generate annual savings of at least $10 million, according to Providence.
Holding company Providence will continue to be named The Providence Service Corp. and be listed on NASDAQ under the ticker symbol PRSC. The organizational consolidation process will be led by Interim CEO Carter Pate, who was named to that position in November when President and CEO James Lindstrom resigned.
“Providence has been increasingly allocating growth capital and strategic resources to LogistiCare,” Pate said. “This organizational consolidation reflects our view that the highest returning opportunities will continue to reside within LogistiCare, where we have been actively investing in numerous organic growth and margin enhancement initiatives.”
