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CompCare Corp. Cutting Its Losses With 550 Layoffs : Health care: Provider of chemical dependency programs says the companywide trims will include 55 jobs at its Costa Mesa and Orange hospitals.

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TIMES STAFF WRITER

In an effort to reduce its losses, the new management of Comprehensive Care Corp., one of the nation’s largest providers of chemical dependency programs, has begun the elimination of 550 positions nationwide, including 55 at its two hospitals in Orange County.

CompCare Chief Executive James P. Carmany, who in August led a proxy battle that ousted the company’s board of directors, said the companywide layoffs began 45 days ago.

By year’s end, CompCare plans to reduce its work force to 1,650 people from 2,200 when the layoffs started. The company operates 15 medical facilities in 11 states.

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About 30% of 179 positions at two CompCare treatment centers in Orange County--Starting Point of Orange County in Costa Mesa and Care Unit Hospital in Orange--either have been or will be cut by the end of 1990, Carmany said.

Orange County was CompCare’s corporate headquarters until the company moved to St. Louis last year.

Carmany said the Orange County cuts are being achieved, in part, by combining the administrative operations of the two hospitals and putting them under a single executive director. The former Irvine corporate office was closed, said Carmany, who still maintains a small executive staff in Orange.

He said some nursing jobs were eliminated at the company’s Orange County facilities, which he said are only 40% utilized. “We tried our best to maintain the hands-on clinical staff at appropriate levels for all forms of treatment,” he said.

Carmany said the cost-cutting efforts will reduce operating costs by an estimated 23% and “get us close to break even.” The company lost $61.2 million for its fiscal year ended May 31 and nearly $7.5 million in the first quarter of its current fiscal year.

Besides approving the layoffs, CompCare’s new directors earlier this month approved a plan to increase the company’s revenues. “We are beefing up our marketing and business development and looking to more effectively use the assets we have,” Carmany said.

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