PROVIDENCE, R.I. (AP/WPRI) — Citing years of cuts and freezes in Medicaid payments, Gateway Healthcare announced that budget deficits are forcing it to close six Rhode Island group homes for people with mental health and substance abuse issues.
The homes will close within three months.
The company says the affected adult group homes are LaBelle House, Central Street, King House and Men’s House. The two homes for children and adolescents slated for closure are Arcadia Children’s Home and Lighthouse for Youth. About 55 adults and 15 children are affected.
Gateway President Richard Leclerc says the homes have been losing money for years and it’s no longer possible to offer quality services with the current reimbursement levels.
“We did not make this decision lightly. It followed an extensive and exhaustive review of each of our programs and all of our options,” Leclerc said. “The reality is these programs have been losing money for many years and reimbursement rates have been cut. It is no longer possible to sustain the level and quality of services we provide at the current reimbursement levels.”
Gateway provides behavioral health treatment and counseling to approximately 25,000 people. It will continue operating its 12 other group homes.