FORT COLLINS — SummitStone Health Partners, the largest safety-net behavioral health provider in Larimer County, has laid off 75 employees, approximately 10% of its workforce. This decision comes in response to significant financial pressures stemming from a reduction in Medicaid enrollments and changes in reimbursement structures.
CEO Michael Allen described the layoffs as “necessary” due to a decrease in Medicaid funding and an increase in uncompensated care. The organization, which serves low-income families, Medicaid recipients, and the uninsured, has faced rising costs while experiencing a surge in demand for uninsured services.
The layoffs were communicated to staff last Thursday, with many employees receiving the news during in-person meetings. Anne Avonlee, a former clinician and Forensics Program Manager, expressed her emotional distress, revealing that she had not been prepared for the sudden job loss and was concerned about her financial future.
“I started crying. There was no way to emotionally prepare for that,” Avonlee said. “We asked about severance, and they said that they weren’t able to do that.” At 32, Avonlee, who had hoped to stay with SummitStone until retirement, now faces uncertainty about her next steps.
SummitStone Health Partners, which serves over 10,000 people annually, had recently opened the Acute Care Facility in Fort Collins, a crisis center designed to offer an alternative to emergency rooms or incarceration. Despite the layoffs, CEO Allen assured that the Acute Care Facility would continue to operate without disruption, though he acknowledged potential delays and interim care plans.
Robert Welborn, a SummitStone Behavioral Health Consultant who was also laid off, highlighted the broader impact of the staffing cuts. “We’re going to see ripples in the community,” Welborn said, noting potential disruptions in partnerships with the judicial system, schools, and homeless services.
The departure of staff raises concerns about continuity of care for clients, many of whom are already struggling with significant mental health challenges. Avonlee pointed out that clients might face difficulties in adjusting to new therapists and recounting their trauma histories, further complicating their access to care.
Data from a 2022 survey indicates a substantial need for mental health services in Northern Colorado. Nearly 25% of adults in Larimer County reported that someone in their household had recently received mental health treatment, with an additional 12% indicating a need for care that was unmet.
SummitStone’s recent cuts underscore the challenges faced by mental health providers in navigating financial constraints while attempting to meet the growing needs of their communities.
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