Youth Home Inc., a nonprofit which provides mental health programs for youth and families, announced Wednesday that it will be laying off 31 of its 227 employees.
The nonprofit made the announcement on its Facebook page, saying the layoffs impact both administrative and direct-care employees.
"While the need for this program has not diminished, it is primarily funded through Medicaid, which has not provided reimbursement increase for provided services since 2001," said CEO David Napier in the statement.
Napier said that the rate freeze has meant the program has been "losing money for over a decade."
Although the nonprofit received funds through fundraising and other programs, it still couldn't make up for the shortfall in funds.
Youth Home will close one residential cottage on its 52-acre campus on Colonel Glenn, which results in a decrease of available beds.
"These steps do not necessarily mean our organization will stop losing money but it does ensure that our mission can continue on a slightly smaller scale for some time to come," Napier said.
In the statement, Youth Home expects the layoffs to be completed by March 1. The nonprofit said it will help people by "organizing job fairs, providing resume assistance, and, when appropriate, providing severance packages."
If you'd like to contact the program, please visit their website by clicking here.