AUSTINTOWN, Ohio (WYTV) – Braking Point Recovery Center is laying off virtually all of its employees, according to a letter obtained by WKBN.
The letter, written by Braking Point’s Executive Director Ryan Sheridan, says the step is necessary due to the Ohio Department of Medicaid suspending its contract with the facility. The layoff notice was issued on Monday.
The Medicaid suspension came after a raid of Braking Point in Austintown last week as well as Sheridan’s Leetonia home. Agents also raided another home in Austintown and a Columbus-area Braking Point facility.
They are investigating charges that may be related to Medicaid fraud, and the recovery center is no longer permitted to treat Medicaid patients.
“As a result, we will no longer be able to bill for services provided and a layoff of virtually all of our employees is necessary. We are giving less than 60 days’ notice of this action because the Department’s suspension of our Medicaid contract was sudden, dramatic, unexpected, and outside of our control,” the letter from Sheridan reads.
The letter goes on to say that the length of time for the layoffs is unknown at this time.
WYTV is working to get more information on the reported layoffs from the company. Check back here for updates.