From large health systems to community-based centers, behavioral health providers are facing adversity with pending regulatory actions, looming funding changes and cuts to already tight reimbursement rates, leading to the closure of facilities and potential disruptions of care.
Here are 20 closures to know:
- Portland, Ore.-based Central City Concern closed the Letty Owings Center, Oregon’s largest residential addiction treatment center for pregnant and parenting women, at the end of October. The nonprofit faced a projected $1 million deficit at the center in 2027, plus expensive building repairs. Restructuring operations to meet residents’ increasingly complex clinical needs would have added $2 million in annual costs, said Andy Mendenhall, MD, CEO of Central City Concern. Dr. Mendenhall said no other provider had the capacity to take over the program.
- Monroe, Wash.-based EvergreenHealth Monroe closed the Recovery Center at EvergreenHealth Monroe’s physical facility and ended its detox and residential treatment programs due to a significant plumbing issue. The hospital has not specified when the closure took effect or whether the programs will resume. EvergreenHealth Monroe continues to offer its virtual intensive outpatient program, which remains open to new patients. The Recovery Center team also continues to provide care coordination and referral support for patients seeking substance use disorder treatment.
- Austintown, Ohio-based Comprehensive Behavioral Health shut its offices Oct. 2, affecting about 7,000 clients served through branches in Austintown, Boardman, East Liverpool, Steubenville, Alliance, Howland and Salem. Executive Director Ebonie Bourgoin said that ownership has not provided a reason for the closures. The organization is working to connect clients with other providers and will fully cease operations after those transitions are completed.
- Shawnee, Okla.-based Gateway to Prevention & Recovery will close after 42 years of service, with Wednesday, September 30th as its final day of service. The organization has faced contract cuts, reductions and financial challenges at the state and federal level over the past 18 months. Gateway provides services to individuals and families facing mental health and substance use issues.
- Southeast Arkansas Behavioral Healthcare System, Arkansas’ first community mental health center, will end operations after more than 62 years, with its four behavioral health clinics transitioning to two other organizations. The nonprofit said changes in the healthcare landscape had made it increasingly difficult to continue operating independently. Mainline Health Systems will take over the Star City and Sheridan clinics, while Arcare will assume operations of the Stuttgart and Pine Bluff locations. The transition is expected to become effective Sept. 28, 2026.
- Fond du Lac County will close its inpatient acute mental health center effective Jan. 1 after the County Board approved the move in a 15-9 vote. The resolution approving the closure cited declining use, rising costs and the inability to provide appropriate staffing. A county executive said the facility was losing $1.4 million per year.
- Circle of Friends Wellness Center in Burney, Calif., has closed, effective July 31. The center said it’s goal is to reopen as the Circle of Friends Clubhouse, an internationally recognized model designed to help individuals living with mental health struggles build relationships, develop skills and support their recovery. The organization said funding and infrastructure for the transition are still being finalized.
- Hillsboro (Ore.) Medical Center, an Oregon Health and Science University Health partner, closed its 21-bed Center for Geriatric Psychiatry Sept. 4. Hillsboro Medical Center said persistent staffing shortages, unsuccessful recruitment efforts sustained over multiple years and consistently low patient volumes made it increasingly difficult to maintain the program.
- Rochester (N.Y.) Regional Health ended developmental and behavioral pediatric services at Riedman Health Center in Irondequoit July 10 following the departure of the physician leading the program. A spokesperson from the system told Becker’s this was “a small, specialized team that cared for a limited number of patients” and it “will not have an impact on RRH’s broader pediatric behavioral health offerings.”
- Pepper Pike, Ohio-based Crossroads Health concluded adolescent residential substance use disorder services at New Directions in Cleveland June 30. The decision reflected a shifting funding environment and evolving regulatory requirements.
- Temecula, Calif.-based Comprehensive Autism Center — a provider of multidisciplinary therapy, diagnostic testing and support services for children with autism — permanently closed two California locations in Riverside and San Diego, laying off 27 and 35 employees, respectively, according to a WARN notice from the state. Both closures took effect May 31.
- The Berkeley Wellness Center in California closed June 19, having lost Alameda County funding tied to the state’s Proposition 1 behavioral health reforms. The center, operated by Bonita House, served around 300 people annually and was one of seven Alameda County wellness centers slated to close.
- Behavioral Health Network’s Carlson Recovery Center based in Springfield, Mass., stopped offering acute detoxification beds for substance use disorder treatment involving 24/7 medical supervision May 21. The center is licensed for 32 beds but had reduced capacity to 16 beds for months because of nursing shortages.
- Naugatuck, Conn.-based Stokes Counseling Services closed May 10, after having served the community since 2011. The private counseling practice specialized in mental health services for children and families and also provided individual, family and couples counseling for adults.
- Tuscola, Ill.-based RISE Behavioral Health and Wellness closed its services, with clinical operations concluding May 22 and a full organizational transition ending June 30. The organization will continue operating after clinical services end to complete administrative responsibilities and fulfil remaining obligations.
- Lebanon, Ind.-based Piece by Piece Autism shut down May 15 after Indiana officials said they would bar the provider from billing Medicaid. The state informed the company it would be cut within 60 days and cited alleged abuse of the taxpayer-funded program. The company received $340,000 in Medicaid payments per patient in 2023 — the highest level nationally — and charged rates that allowed it to collect as much as $640 an hour for services.
- Temecula, Calif.-based Comprehensive Autism Center closed two locations and laid off a total of 62 employees, effective May 31. The closures affect sites in Riverside and San Diego counties. The organization currently operates three locations: Riverside, Temecula and San Diego, with the Temecula location remaining open. At the Riverside County location, 27 employees were laid off. San Diego County laid off 35 employees.
- Lake County (Calif.) Behavioral Health Services closed two peer support centers — Big Oak Peer Support Center in Clearlake Oaks and Circle of Native Minds in Lakeport — effective June 1. The funding changes tied to Proposition 1 are reshaping local services.
- The Lodi Wellness Center in San Joaquin County, Calif., closed June 30 due to Proposition 1 funding changes. The site was one of three centers operated through a partnership between San Joaquin Behavioral Health Services and Peer Recovery Services. After a December closure in Manteca and the Lodi closure, only a Stockton location will remain.
- The Pride Institute, owned by King of Prussia, Pa.-based Universal Health Services, closed its inpatient addiction treatment program in Eden Prairie, Minn., on Jan. 1. The Eden Prairie site will transition to outpatient services for all adults, regardless of gender identity or sexual orientation. Its Minneapolis location will exclusively provide services for the LGBTQ+ community. The closure resulted in approximately 30 staff separations and no client displacements.
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