The Wedge Recovery Centers – a provider of mental health, addiction and other behavioral health services to nearly 2,000 Philadelphia residents on medical assistance – will close in the coming weeks.
"This decision was not made lightly, and has followed three consecutive years of financial losses," Wedge CEO Jason McLaughlin wrote in a letter to vendors and partners. "We have exhausted options to continue the operation of our programs, including through further downsizing, or through a merger with or acquisition by another organization. Ultimately, with rising overhead costs, decreased census due to shrinking Medical Assistance enrollment, and a lack of ability or interest from local and state entities to provide financial support, we find our position untenable."
The letter, dated May 5, says the Wedge will close in "two to four weeks."
McLaughlin did not immediately respond to requests for comment.
The Wedge opened its first office in Philadelphia in 1994, eventually expanding to eight offices in the city. The Wedge offers therapy and medication management – and a walk-in policy – for a wide range of mental health issues, including anxiety, depression and bipolar disorder. It also provides medications for opioid use disorder, individual and group substance use counseling and other addiction treatment services. A day program provides individualized care for people with major mood disorders, psychotic disorder and borderline personality disorder.
Community Behavioral Health, Philadelphia's Medicaid managed care organization, is working closely with the Wedge to transition about 1,900 patients to other providers for mental health and substance use treatment in the city, said Donna E.M. Bailey, CBH's chief executive officer.
"It's our understanding that there is a potential for the majority of the Wedge staff to be offered positions at some of these other agencies (service providers), as well as for those agencies to receive those members," Bailey said. "So I do want to stress that we feel confident and comfortable that there's current capacity at other existing organizations in our network to absorb the members who will be departing the Wedge."
McLaughlin's letter said the Wedge had stopped accepting new patients and that the organization's efforts were now focused on transition.
CBH oversees a network of behavioral health providers, ranging in size from small clinics to large hospital systems. CBH is sending letters to its members saying that it may be a "disconcerting time" for people with the Wedge closing and encouraging people with concerns to contact CBH, Bailey said.
People can reach CBH member services by calling (888) 545-2600.