Mental health care provider announces closure due to high costs and low reimbursements

Posted at 12:38 PM, Jan 09, 2018
and last updated 2018-01-09 18:54:30-05

CHAPS Academy, a local licensed mental health care provider announced Tuesday in a press conference that they will close its doors January 31, 2018.

The president of the CHAPS Academy says the closure is due to low reimbursements and the fixed costs associated with equine therapy.

In a press release to NBC26, Mary Downs said they've served more than 2,500 clients and their families in the past 14 years.

   “The health care system, especially as it relates to mental health care, is broken,” Downs said. “It’s a shame that reimbursements for mental health care services aren’t high enough to cover operating costs. With the exception of limiting care to clients based on their insurance coverage and ability to pay, we did as much as we could to create a sustainable business model, including lowering expenses, exploring strategic partnerships and conducting a feasibility study. At the end of the day, it’s simply not possible for a small mental health agency to negotiate good contracts, receive appropriate reimbursement and serve clients who lack insurance or who are covered by certain payers.

Downs continues to state that CHAPS Academy is extremely grateful to the generous donors who have helped them throughout the years.