Citing Arkansas' "challenging health care climate," Youth Home Inc. of Little Rock will lay off 31 of its 227 employees by March 1, CEO David Napier announced Wednesday.
In a press release, Napier said that the nonprofit's programs are primarily funded through Medicaid and that its reimbursement rates had not been increased since 2001.
"This rate freeze has translated to the program losing money for over a decade. Youth Home tries to make up this shortfall through fundraising and developing other programs," he said.
The layoffs will result in the closing of one cottage at its 52-acre residential treatment center on Colonel Glenn Road and a consequent reduction of available beds, the press release said.
The layoffs will include both administrative and direct-care staff who work primarily in the residential program on Colonel Glenn, according to the press release.
Started in 1966, Youth Home provides adolescent residential treatment, community based treatment, outpatient, and school based programs. It also serves clients of all ages through its Behavioral Health Services of Arkansas at 10 Corporate Hill in Little Rock.
Read Thursday's Arkansas Democrat-Gazette for full details.