Universal Health Services: Laurel Ridge Treatment Center Prepares to Lay Off 650 Employees After Being Cut Off by Medicaid

April 30, 2026

Nearly 650 employees at Laurel Ridge Treatment Center in San Antonio are set to be laid off after the facility lost its Medicare and Medicaid funding, following findings that it failed to meet patient health and safety standards and placed patients at risk. The cuts—impacting 648 positions—are scheduled to take effect June 26 and stem directly from regulatory action tied to those deficiencies.

The psychiatric hospital, which provides mental health and substance use treatment, had already been under scrutiny from state investigators before the funding cutoff. With federal reimbursements halted, the facility is now scaling back operations, triggering one of the largest healthcare layoffs in the region.

Advocates warn the fallout could be severe, as the loss of such a large workforce at a major behavioral health provider may further strain an already limited mental health care system, leaving vulnerable patients with fewer options for treatment and support.

(Source: KSAT (dot) com, April 27, 2026)