Behavioral health and autism care providers across five states are closing programs or reducing operations as regulatory actions, funding changes and reimbursement rate cuts disrupt the sector.
Here are seven things to know:
- San Antonio-based Laurel Ridge Treatment Center will lay off approximately 648 employees following CMS’ termination of its Medicare provider agreement, citing failure to substantially comply with Medicare and Medicaid health and safety participation requirements. The layoffs are expected to take effect June 26.
- Tuscola, Ill.-based RISE Behavioral Health and Wellness will close 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 will shut down by 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 will close two locations and lay 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 will be laid off. San Diego County will lay off 35 employees.
- Lake County (Calif.) Behavioral Health Services will close 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., will close June 30 due to Proposition 1 funding changes. The site is 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 upcoming 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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