SAN ANTONIO – Nearly 650 employees at a San Antonio behavioral health facility are being laid off later this year, according to a letter obtained by KSAT.

Laurel Ridge Treatment Center, located at 7720 Corporate Woods Drive, was recently cut off from Medicaid and Medicare payments by federal officials over safety violations.

In a letter sent Monday to employees, it states that the layoffs will be effective June 26 and are expected to result in the permanent layoff of around 648 employees at the facility.

Laurel Ridge staff attended a meeting on Monday at which they were informed of the layoffs.

“The day is going to end, I’m going to go home and enjoy myself … it is what it is, bro,” Dmahre Jackson told KSAT.

Jackson kept his spirits high but said he was unsure exactly which staff were facing the layoffs.

“Something with Medicaid, I don’t know. I really don’t understand why the layoff is happening. I got to do my research,” he said.

The letter states that additional information regarding employees’ pay, benefits and state unemployment benefits will be provided in a separate communication.

KSAT has previously followed through on the facility’s violations. A November report described staffing shortages that left mental health patients waiting up to six hours to be checked in, as well as a self-harm incident involving a smuggled razor blade.

That same report cited unsecured items that could be used for self-injury, ligatures, or fire, raising serious questions about patient safety at the facility.

The Centers for Medicare & Medicaid Services will stop paying for patients admitted to Laurel Ridge starting on Thursday, April 30.

KSAT contacted Laurel Ridge leadership for comment, but did not receive a response Monday night.

The letter sent to employees can be read below:

Read also:

Copyright 2026 by KSAT – All rights reserved.

Share.

Comments are closed.