Prism Health North Texas, which runs five health clinics in the Dallas area focused on HIV and AIDS services, is laying off about 15% of its employees and ending some community programs due to inflation and loss of income.
Prism Health CEO Dr. John Carlo said The Dallas Morning News that around 30 employees were laid off on Thursday, mostly at the administrative and executive levels. After years of growth, the nonprofit will end its community-based STI screening — which it said tested between 3,000 and 4,000 people each year — and a program in which staff taught others the appropriate treatment for HIV.
Carlo said services at his clinics and three dental health centers, which together treat around 15,000 patients, will not be affected. It will also maintain its reintegration program for newly released inmates.
“There are times when you have to recant,” he said.
Carlo will remain CEO. He and his management team are postponing bonuses and raises this year.
The changes were necessary, Carlo said, to respond to inflation, cost-of-living increases and lost revenue after pharmaceutical giant Gilead Sciences changed its reimbursement policy for HIV prevention drugs called PrEP. .
The news reported earlier this year that North Texas HIV clinics stand to lose at least $20 million due to Gilead’s PrEP policy changes.
Here’s how the policy worked: Pharmacies dispensed PrEP to certain eligible patients at a discounted price, but Gilead reimbursed at the drug’s retail price. The difference, or “spread,” sometimes up to $1,200 per patient, was passed on to the clinic, where it was often used for additional services like HIV testing.
In 2021, Gilead began blocking funds for services unrelated to direct drug procurement. The change was necessary, a Gilead spokesperson said, to allow the company to continue providing free PrEP to low-income and uninsured patients and to protect against fraud.
“Gealad is friendly. They are not in denial of their effect. But they have been very clear that they are not responsible for HIV protection services in this country,” Carlo said.
Prism Health lost $3.5 million last year largely due to the ruling, it said The news in February. In response, his clinics began charging patients on a sliding scale based on income.
Prism Health will also move away from HIV-only services. The nonprofit is applying to become a federally licensed health center. This would make it eligible for additional funding and also require it to expand its services so that it can treat anyone who comes through its doors.
The good news is that HIV is easier to prevent and AIDS more treatable than ever. Thanks to drugs like PrEP and the services established by HIV clinics over the decades, HIV and AIDS are treated like many other chronic diseases.
The downside, Carlo said, is that Prism Health cannot survive unless it expands its services beyond HIV and STIs. After this period of withdrawal, he hopes the organization will grow and, if granted federal approval, continue to serve its HIV patients – and anyone else in the community who may need their help.
“I don’t see it as a failure,” Carlo said. “We just know it’s something we have to embrace. You have to diversify. »
There are several other programs in North Texas that provide specialized services to LGBTQ+ Texans and people living with HIV and AIDS, including abundant prosperity and the Resource Center in Dallas and the help center in Arlington.