Nearly 500 behavioral health workers in Colorado have been laid off, following the closure of two psychiatric hospitals and reductions in other facilities. These closures have raised concerns about the future of mental health services in the state.
On March 10, West Springs Hospital in Grand Junction, the only inpatient psychiatric facility between Denver and Salt Lake City, shut down, which caused 176 job losses, 130 of them full-time positions. The hospital cited financial difficulties, including declining Medicaid reimbursements, as factors behind the decision.
According to a press release from Mind Springs Health, outpatient behavioral health services remain open despite inpatient operations closing.
This closure is part of a larger wave of layoffs that are affecting Colorado's behavioral health system, including the closure of Johnstown Heights Behavioral Health and the layoffs at West Pines Behavioral Health, operated by Intermountain Health.
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.
These workforce reductions will significantly affect access to care. “In some contexts, there is no meaningful continuity of care,”Atchity said. “Services are dropping off, and even before when there were 500 providers on the books, there were already delays in accessing care. Now, with these providers being cut, that's only going to worsen.”
Atchity also said that the state’s efforts to address these challenges include the implementation of the Behavioral Health Administration (BHA), a Colorado agency that oversees mental health and substance use care services statewide. While it's still in the early stages, Atchity remains hopeful that it will improve access to care in the long term. “The new system of management under the BHA, with its two contracts for behavioral health service organizations, is still in the implementation phase,” he said. “It's too soon to assess its impact, but the hope is that it will improve access to care in the future.”
Advocacy organizations like Mental Health Colorado are also pushing for continued improvements. Atchity said that it is important to hear from individuals who have had their mental health care disrupted by the layoffs and closing of facilities. “We've got a grassroots network of lived-experience advocates called Brain Wave,” he said. “We encourage people to let us know if they're experiencing changes in their access to care because, as the nonprofit consumer advocacy entity, we kind of function as the better business bureau for the state systems.”
As the state grapples with the closures and layoffs, Atchity said that Coloradans should be proactive in preparing for their mental health needs. “A general precaution to all Coloradans is to know that no one is immune to a mental health crisis, and a good practice is to have some sense of what your pathway to care may be,” he said. “Everybody should know about Colorado crisis services and consider having conversations with their primary care providers about mental health support options.”
The issues presented by the layoffs in Colorado underscore the ongoing challenges in the state’s behavioral health system, with critical questions about the future of mental health services.
