Overview
- A federal judge denied Laurel Ridge's request to pause the termination of its Medicare and Medicaid agreement, allowing coverage for new admissions to end on April 30.
- The hospital told staff in a letter Monday that 648 employees will be permanently laid off on June 26 and will not be eligible for rehire.
- Federal and state regulators moved to end participation after inspectors documented safety lapses including long intake waits, unsecured items and a self-harm incident, with CMS citing immediate jeopardy and three patient deaths in 2025.
- Local mental health leaders say the loss of Laurel Ridge capacity could remove about 450 inpatient and outpatient beds across the region and push more people into emergency rooms.
- Laurel Ridge has sued to challenge the termination and says losing federal status would likely force closure and broader contract losses because many private insurers require Medicare enrollment.