Behavioral health leaders are grappling with a workforce paradox: Demand for services continues to grow, yet funding uncertainty and inadequate reimbursement rates are forcing some providers to reduce staff and scale back services.
Here are 12 layoffs to know:
1. San Diego-based Sharp HealthCare reduced its workforce and realigned operations across several areas of the health system, affecting about 260 employees. Many of those employees were immediately offered alternative employment within the system, and the net reduction amounts to just under 1% of Sharp’s workforce. The changes affect behavioral healthcare, select outpatient services and certain systemwide and regional operations.
2. Columbia, Md.-based Grassroots Crisis Intervention will lay off 62 employees after the federal 988 National Back-Up Text and Chat contract was discontinued. The reduction in force will take effect Sept. 29, 2026. Grassroots will continue answering calls, chats and texts to the 988 Suicide and Crisis Lifeline from Central Maryland consumers.
3. Vermont Psychiatric Care Hospital in Berlin cut four patient beds and laid off three staff. A declining patient census over the last five years led the state’s Department of Mental Health to make reductions, leaving the facility with 21 beds. The employees were recovery services specialists, a support role that is not considered a direct care position.
4. Illinois plans to reduce operations at Choate Mental Health and Developmental Center in Anna. Over the next fiscal year, approximately 280 positions may be impacted by the operational changes. The center currently has about 523 staff.
5. Portland, Ore.-based Cedar Hills Hospital, owned by King of Prussia, Pa.-based Universal Health Services, is laying off 45 employees as the facility reduced its inpatient capacity from 98 beds to 64 beds.
6. Leominster, Mass.-based UMass Memorial Health-Community Healthlink increased planned layoffs to 231 positions, effective Sept. 16. The organization also plans to permanently close all programs and cease operations, with a phased closure as Community Healthlink works to transition services to other community providers.
7. South Carolina’s Department of Behavioral Health and Developmental Disabilities eliminated 248 administrative positions June 30, including 47 filled jobs and 201 vacant positions. The layoffs affected only administrative roles. Direct care employees were not included, and the agency said services would continue without interruption. A BHDD spokesperson said the reductions were intended to improve efficiency and fulfill the agency’s consolidation goals.
8. 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.
9. Farmington Hills, Mich.-based Centria Autism — the largest provider of applied behavior analysis therapy in the state — will permanently lay off 48 employees at its Fresno, Calif., location effective July 31, according to a WARN notice. Founded in 2010, the company has expanded services across 11 states and employs nearly 6,000 professionals, according to its website.
10. Renton, Wash.-based Providence will lay off 40 workers, effective July 14, after updating its behavioral healthcare model at Providence Sacred Heart Medical Center in Spokane, Wash. The system cited evolving community behavioral health needs as reason for the reduction.
11. Aurora, Colo.-based Aurora Mental Health and Recovery plans to eliminate 111 positions amid Medicaid changes, effective June 30. Of the affected roles, 66 are administrative and support positions and four provide direct client care. AMHR also plans to close several programs that lack sustainable state funding: Aurora Sustained in Forensic Services, the Mrachek and Thomas Houses in Residential Services, and multiple Cultural Development & Wellness Center programs.
12. 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.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.
