Gateway to Shutter Six Group Homes by August

Citing declining reimbursement rates and budget deficits, Gateway Healthcare has announced that it is closing six group homes in Rhode Island.

The closure will affect 70 residents, of which 15 are children and adolescents.

““We did not make this decision lightly. It followed an extensive and exhaustive review of each of our programs and all of our options,” said Richard Leclerc, president of Gateway Healthcare. “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.”

The company said that the decision comes after ”a decade of reimbursement rates that have remained flat or have been cut significantly,” including a 40 percent cut four years ago.

The group homes affected include four for adults with mental health or substance use/abuse issues – LaBelle House (North Kingstown), Central Street (Central Falls), King House (Woonsocket) and Men’s House (Woonsocket), and two for children and adolescents -- the Arcadia Children’s Home (West Greenwich) and Lighthouse for Youth (Wakefield), which was already scheduled to close at the end of June.

We’ve had to subsidize these services for well over a decade and we are at a point now where we can no longer do that and maintain the quality and level of care needed for this population,” Leclerc said. “As the major provider of community behavioral and mental health services, we need to make difficult decisions to ensure that we are able to protect and maintain our mission of providing services to 25,000 people each year in Rhode Island.”

As required by state law, Gateway Healthcare has notified the Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals, and the Rhode Island Department of Children, Youth & Families about the decision to close the six group homes within 90 days.

Gateway Healthcare will still maintain operation of eight adult group homes and four group homes for adolescents.

The company said is is trying to find work for 60 affected staff members elsewhere in the organization.

The cuts come at a time that state leaders are grappling with significant substance abuse and mental health issues among Rhode Islanders.