Regulatory Setbacks: Landmark Recovery Denied Reopening of Indiana Facilities
Landmark Recovery, a nationwide addiction treatment provider, is facing a significant legal and operational crisis after an administrative law judge in Indiana upheld the state’s decision to revoke the licenses of three of its facilities. This decision came in response to multiple patient deaths and alleged regulatory violations, further complicating the company’s ability to continue operations at full capacity.
The facilities in question—part of Landmark’s Praxis Recovery Network—were located in South Bend, Bluffton, and Carmel, Indiana. These centers were shut down after the Indiana Division of Mental Health and Addiction (DMHA) cited serious concerns about patient safety. The primary trigger for the revocations was the death of three patients at the Praxis of South Bend facility in Mishawaka within a one-week span between July 3 and July 9, 2023.
Regulators also accused Landmark of failing to report critical incidents to the state in a timely manner, an issue that compounded concerns about its overall compliance with industry safety standards. The judge’s decision to uphold the license revocations effectively prevents the company from reopening these facilities—at least for now.
Landmark Recovery Vows to Fight Back
Despite this ruling, Landmark Recovery CEO Matt Boyle remains defiant, stating that the company intends to fight the decision through further legal avenues. Boyle announced that Landmark would seek a full evidentiary hearing to challenge the DMHA’s findings and argue that the closures were unjustified.
In the meantime, Landmark has pivoted its focus toward its remaining 11 active facilities across the country. Boyle has sought to reassure patients and investors that the company is still committed to its mission of providing accessible addiction treatment, though the legal battles ahead may prove to be a major distraction.
Ohio Facility Under Investigation After Another Patient Death
While the legal fight in Indiana unfolds, another serious incident at a Landmark Recovery facility in Ohio has raised further concerns about the company’s operational oversight.
On August 28, 2023, a patient at the Praxis of the Firelands facility in Willard, Ohio, died following a medical emergency. According to Landmark Recovery, the patient was under supervision, with staff conducting 30-minute checks as part of routine monitoring procedures. However, details regarding the cause of death and whether staff followed all necessary protocols remain unclear.
Local authorities have launched an investigation into the circumstances of the patient’s death, though officials have yet to release any conclusive findings. This latest tragedy casts additional doubt on the company’s ability to ensure patient safety, particularly as it battles regulatory scrutiny in multiple states.
Widespread Layoffs and Operational Fallout
The closure of Landmark Recovery’s three Indiana facilities has had a significant ripple effect on its workforce and overall business operations. At the end of August 2023, the company laid off approximately 300 employees who had been working at the shuttered facilities.
However, the layoffs did not stop there. Internal restructuring efforts have reportedly led to additional job cuts across the organization, including senior leadership positions in human resources and communications. The full extent of these layoffs remains unclear, but the reductions signal Landmark’s ongoing struggles to maintain financial and operational stability amid the closures and legal battles.
Legal Challenges Pile Up: Wrongful Death Lawsuit and Patient Allegations
Landmark Recovery’s legal troubles extend beyond its fight with regulators. In August 2023, the family of one of the deceased patients from the Mishawaka facility filed a wrongful death lawsuit against the company, alleging negligence in the treatment and supervision of their loved one.
Additionally, Landmark faces a growing class-action lawsuit involving nearly 100 former patients who claim they were subjected to unsafe conditions, inadequate medical care, and neglect while in treatment. These allegations raise serious questions about the company’s ability to provide a safe and effective recovery environment for vulnerable individuals seeking help for substance use disorders.
What’s Next for Landmark Recovery?
With multiple investigations underway, ongoing lawsuits, and continued regulatory scrutiny, Landmark Recovery is at a critical crossroads. The company’s leadership remains determined to fight the Indiana facility closures and defend its reputation, but the path forward is fraught with legal, financial, and public relations challenges.
As the evidentiary hearing approaches, industry experts and addiction recovery advocates will be closely watching the outcome. If Landmark fails to overturn the license revocations, it may face further scrutiny in other states, potentially jeopardizing its remaining operations.
For now, the fate of Landmark Recovery hangs in the balance—dependent on its ability to navigate these compounding legal and operational crises while maintaining the trust of its patients, employees, and regulatory bodies.
