Fort Collins, Colo.-based SummitStone Health Partners has laid off around 11% of its workforce.
The behavioral health provider laid off 75 employees Aug. 1, according to a statement on its website. Most of the employees were administrative and non frontline staff.
Shifts in Colorado's Medicaid reimbursement for behavioral providers, and declining Medicaid enrollment have led to "dramatic changes" in SummitStone's funding model, CEO Michael Allen said.
"We're seeing the impacts of these changes across all of Colorado's community mental health systems, many of which are having to make changes similar to ours," Mr. Allen said. "While not an ideal outcome, it is necessary for the long-term sustainability of our organization and most importantly, our ability to care for and serve Larimer County."
Many of Colorado's community mental health centers have laid off staff in recent months, The Colorado Sun reported Aug. 8. Grand Junction, Colo.-based Mind Springs Health laid off 49 staffers, according to the Sun. Sterling-based Centennial Mental Health Center laid off three of its five top executives.