Substance use disorder (SUD) treatment provider Ark Behavioral Health is permanently closing one of its locations and laying off facility staff, according to publicly available documents.
Ark cited “unanticipated and unprecedented decline” in patient census, the company’s inability to renegotiate its lease, get a credit extension or otherwise raise money as reasons for closing the facility, called Ohio Recovery Center. Eighty-five employees were laid off as part of the closure.
“Due to significant and recent unforeseeable business circumstances, including a recent unanticipated and unprecedented decline in the patient census at the [Ohio facility], and the company’s recent and varied unsuccessful efforts to obtain additional capital investment, extension of credit, or other financial solutions that would have allowed the company to continue to operate, the company has made the decision to shut down all of its operations at 15145 Lincoln Highway, Van Wert, OH 45891,” the notice read.
The Ohio location was one of Ark’s three facilities. The Quincy, Massachusetts-based provider also operates two locations in Massachusetts. Investment firms Hunter Street Partners and Healy Capital Partners invested in Ark in 2020. In 2022, the provider raised $11 million in a round aiming to raise $20 million.
Ark did not respond to Behavioral Health Business’ request for comment by the time of publication.
Most employees were laid off between February 14 and 27, though a small number continued on in order to wind down operations until its final closure date, scheduled for March 9. Positions impacted included nurses, recovery specialists, administrative staff and counselors.
The WARN Act requires most employers with more than 100 employees to provide a 60-day notice before closing a facility or executing a mass layoff. Ark acknowledged this rule but said that “significant and recent unforeseeable business circumstances” made the 60-day notice impossible. The company filed the notice on February 11, only three days before some employees were scheduled to be laid off.
Several other behavioral health companies have executed layoffs thus far in 2025. In January, telepsychiatry provider Iris Telehealth laid off employees days after completing an acquisition. The same month, autism therapy provider Acorn Health closed several facilities and laid off members of regional management.
