Lifeways expects mass layoffs without county contract
Published 7:00 am Thursday, August 19, 2021
PENDLETON — Lifeways expects to lay off at least 100 employees when Umatilla County transfers its mental health and substance abuse services over to a new provider this fall, according to a notice sent to the county and state employment department on Aug. 13.
The county’s former mental health provider lost its contract in May when the county went out for a request for a proposal, seeking a new provider that would cover both mental health and substance abuse services.
The county gave that contract to Community Counseling Solutions, or CCS, in late May. Officials have said the Heppner-based provider will begin offering addiction services in the county in September and mental health services in December.
After serving the county for more than 16 years, Lifeways in a Worker Adjustment and Retraining Notification — or WARN — told the county board of commissioners and the Oregon Employment Department’s Dislocated Worker Unit that is expects layoffs to occur between Oct. 13 and Nov. 30, “depending on when the new provider takes over operations.”
“All employees in all job titles and all positions in Umatilla County are affected,” the provider said, estimating the total number of employees to be approximately 100.
The Ontario-based provider, officials have said, employed more than 120 people, most of whom are county residents, and has 11 facilities throughout the county.
The provider says it will “attempt” to retain some county employees “in other positions in other locations.” Some employees may be maintained or recalled by Lifeways, but “no employees who is being laid off should count on being recalled to employment with Lifeways.”
Lifeways officials did not return calls and an email seeking comment prior to press time.
As a nonprofit, Lifeways’ tax filings are a matter of public record. According to Lifeway’s 2019 tax form the most recent filing available via www.guidestar.org, which reports on U.S. nonprofit companies, the company reported net revenue of negative $1.54 million, but total assessment and fund balances in excess of $10.7 million.
In June, after the county board gave the contract to CCS, Lifeways planned to stay in the county by “pivoting its services to retain staff,” Chief Executive Officer Tim Hoekstra said in a press release.
Liz Johnsen, director of Lifeways at the time, however, could not provide specifics at that time about the pivot and what it planned to do with its patients, employees and facilities.
Johnsen said Aug. 18 that she “is no longer with Lifeways.”
In late spring, Lifeways came under scrutiny from officials for its ability to respond when law enforcement requests help during calls for people experiencing mental health issues. In April, the provider again drew attention for the closure of Aspen Springs in Hermiston. The acute care facility provided the highest level of psychiatric care for individuals experiencing a severe mental health crisis before it closed after being open for just seven months. It reopened in May as a secure residential treatment facility, which is a lower level of care.
Lifeways then protested the county’s move to award the contract to CCS, calling the decision “arbitrary and capricious.” Hoekstra claimed at the time that CCS was “underqualified and underprepared to take on the significantly more complex, higher volume work in Umatilla County.”
As of early June, the provider served 184 clients with schizophrenic disorders, 491 clients with major depression, 471 clients with post-traumatic stress disorder, 215 clients with bipolar disorder and more than 2,000 clients with adjustment disorders.