Mental Health, Addiction Treatment Provider Momentum For Health Lays Off 86 Employees, Closes 3 Locations

A behavioral health facility in California recently laid off 86 employees.

Momentum For Health, a nonprofit mental health and substance use disorder treatment provider, cited impending permanent closures of three locations as the reason for the layoffs, according to WARN notices filed on Oct. 27. The layoffs will go into effect on Dec. 31. 

San Jose, California-based Momentum For Health offers outpatient and residential behavioral health programs for teens and adults, as well as supportive services, including employment and housing programs and community programs designed to detect signs of mental illness and encourage people to seek help.


Behavioral Health Business has reached out to Momentum for Health for comment.

Momentum served over 4,000 patients between the summer of 2021 and the summer of 2022, according to its latest annual report. Most of these patients paid for services through Medi-Cal, California’s version of the Federal Medicaid program. 

Its annual revenue neared $55 million, including over $44 million from Santa Clara County, according to the report. Its expenses totaled over $58 million.


Momentum previously partnered with Kaiser Permanente, allowing Kaiser San Jose’s fourth-year psychiatry residents to provide care at Momentum for Health’s locations as a training experience. It opened a new 28-bed adult residential treatment center this summer. 

Momentum joins the slew of behavioral health providers that announced layoffs over the last few years. Headspace Health, Talkspace, Cerebral, Eleanor and Foresight all cut staff numbers, as well as behavioral health tech company Mindstrong.  Many of these behavioral health companies cited a need to cut costs as the reason for the layoffs.

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