Colorado Psychiatric Hospital Closures Lead to Nearly 500 Behavioral Health Layoffs

Vincent Atchity, President and CEO of Mental Health Colorado, explained that these layoffs stem from multiple factors, including a Medicaid deficit and the “unwind” of COVID-era provisions. “[Colorado is] in a state of deficit when it comes to Medicaid, particularly for behavioral health needs, and that may be one of the drivers of this,” Atchity said. Many providers rely heavily on Medicaid for revenue, which has been jeopardized as enrollment declines. “When that’s jeopardized, as it currently is, those providers’ business models are at risk,” he said.