Substance use disorder (SUD) treatment provider BrightView Health has made the difficult decision to shut down nine of its facilities across two states, Massachusetts and Arizona. This closure marks a significant shift for the company, which has been expanding its reach and increasing its network of treatment centers across the U.S. over the past several years. The decision to close these centers is due to the challenging operating environments in both states, which BrightView says do not align with its goals and mission to provide evidence-based care for those battling substance use disorders.
The closure of these centers, scheduled for late 2024 and early 2025, has raised concerns among patients, healthcare providers, and local communities about the potential impact on treatment access for individuals struggling with addiction. With over 80 facilities across seven states, BrightView has become a major player in the SUD treatment landscape, providing a range of services such as medication-assisted therapy (MAT), psychotherapy, withdrawal management, and peer support. However, the company’s decision to close these facilities highlights the difficulties facing the SUD treatment industry, where financial challenges, regulatory hurdles, and other external factors can disrupt the delivery of care.
In this blog post, we will explore the reasons behind BrightView Health’s closure of its Massachusetts and Arizona centers, the implications for SUD treatment in these states, and the broader challenges facing the addiction treatment industry as a whole.
The Reason for the Closures: Challenging Operating Environments
BrightView’s decision to close its two Arizona locations by December 31, 2024, and its seven Massachusetts facilities by February 17, 2025, stems from what the company describes as “challenging operating environments.” In a statement to Behavioral Health Business, BrightView CEO Chad Smith explained that the company had made the difficult decision to close these centers in order to focus on states where it can provide the most effective and sustainable care for its patients. The company cited the need for alignment between its evidence-based, comprehensive care model and the long-term viability of support for its programs in these states.
For BrightView, the goal is to operate in states where they can ensure high-quality care and build a strong foundation for future growth. The closure of these facilities reflects the difficulties BrightView has faced in adapting to the local regulatory and financial environments in Massachusetts and Arizona.
Massachusetts and Arizona: Unique Challenges in SUD Treatment
While Massachusetts and Arizona have both been grappling with addiction issues, they each present unique challenges that make them difficult environments for SUD treatment providers to navigate.
Massachusetts has been struggling with a surge in opioid addiction, particularly in the wake of the opioid epidemic. According to the Massachusetts Department of Public Health, there were 2,000 confirmed opioid-related overdose deaths in the state in 2022 alone. In response, the state has made significant strides in developing a comprehensive approach to addiction treatment, including increased access to MAT, harm reduction programs, and other public health initiatives.
However, despite these efforts, Massachusetts’ addiction treatment system faces a number of challenges. One major issue is the ongoing shortage of healthcare providers in the state. With a shortage of addiction specialists and the increasing demand for services, providers are often stretched thin, resulting in long wait times for patients seeking care. Additionally, the state has faced challenges with insurance reimbursement rates for addiction treatment, which have made it difficult for providers to remain financially sustainable.
In Arizona, the situation is similarly complicated. The state has seen a sharp rise in opioid and fentanyl-related deaths in recent years. In 2022, Arizona experienced a record number of drug overdose deaths, with the majority involving opioids. The state has made efforts to address the crisis through increased access to MAT and other treatment options, but like Massachusetts, it has faced challenges related to workforce shortages, regulatory hurdles, and financial constraints. Arizona’s Medicaid system, in particular, has been cited as a barrier to expanding access to addiction treatment services, as reimbursement rates are often insufficient to cover the full costs of care.
In both states, BrightView has found it difficult to operate within these challenging environments while maintaining its commitment to delivering comprehensive, evidence-based care. By shifting its focus to states where the regulatory and financial landscapes are more supportive, BrightView aims to ensure that its resources are used effectively to provide high-quality care for those in need.
Continuity of Care for Patients Affected by the Closures
One of the most pressing concerns about BrightView’s decision to close its facilities in Massachusetts and Arizona is the potential disruption to care for the patients who rely on these centers for treatment. The closure of nine facilities will inevitably impact hundreds, if not thousands, of individuals who are currently receiving treatment for substance use disorders.
In response to these concerns, BrightView has emphasized its commitment to ensuring continuity of care for its patients. The company is working with other SUD treatment providers in both states to ensure that patients can transition smoothly to other facilities and continue receiving the care they need. In Massachusetts, for example, BrightView has partnered with CleanSlate, a Tennessee-based SUD treatment provider, to offer an expedited transfer option for patients who will be affected by the closures.
Additionally, the Massachusetts Department of Public Health has sent out notifications to other SUD treatment providers in the state, alerting them that BrightView patients may be seeking care following the closures. This proactive approach is intended to minimize any disruptions in care and help patients find alternative treatment options as soon as possible.
The Broader Impact of BrightView’s Decision
BrightView Health’s decision to close its centers in Massachusetts and Arizona is part of a larger trend of consolidation and closures in the addiction treatment industry. While there has been an increased demand for SUD treatment services in recent years, many providers are struggling to keep up with the rising demand due to financial pressures, workforce shortages, and regulatory challenges. As a result, providers are being forced to reevaluate their operations and make difficult decisions about where to focus their resources.
For patients, this means that access to care may become even more limited, especially in states with already strained treatment systems. Although BrightView is working to ensure that patients can transition to other providers, there is no guarantee that other centers will have the capacity to accommodate the influx of patients. As more treatment centers close or consolidate, it becomes increasingly important for policymakers and healthcare providers to address the structural issues facing the addiction treatment industry, including workforce shortages, reimbursement rates, and the need for comprehensive, integrated care.
The Role of Private Equity in the SUD Treatment Industry
BrightView’s expansion and subsequent closures also highlight the role of private equity in the addiction treatment industry. In 2017, Chicago-based private equity firm Shore Capital Partners invested in BrightView, and the company has since acquired several facilities through mergers and acquisitions (M&A). While private equity investments have allowed BrightView to expand its footprint and scale its operations, they have also introduced pressures related to profitability and financial sustainability.
In the highly regulated and often underfunded field of addiction treatment, balancing financial goals with the mission to provide quality care can be challenging. Private equity-backed providers like BrightView may face particular challenges in navigating the financial constraints and reimbursement issues that have plagued the addiction treatment sector. As BrightView has learned, the pressure to remain financially viable can sometimes lead to difficult decisions, such as closing centers in certain states.
Moving Forward: The Need for Systemic Change
The closure of BrightView’s Massachusetts and Arizona facilities underscores the need for systemic changes in the addiction treatment industry. While there is a growing recognition of the need for evidence-based, comprehensive care for substance use disorders, many treatment providers are facing significant barriers to sustainability and growth. Addressing issues such as workforce shortages, inadequate reimbursement rates, and regulatory constraints is essential to ensuring that patients can access the care they need.
BrightView’s decision to focus on states where the operating environment is more conducive to its model of care is a necessary step for the company, but it also serves as a reminder of the challenges facing the addiction treatment industry as a whole. As the opioid crisis and other substance use disorders continue to impact communities across the country, it is essential that policymakers, providers, and payers work together to create a more sustainable and effective system for delivering addiction treatment.
In conclusion, BrightView Health’s decision to close its centers in Massachusetts and Arizona highlights the complex challenges facing the addiction treatment industry. While the company’s focus on ensuring continuity of care for its patients is commendable, the closures underscore the need for systemic change to address the financial, regulatory, and workforce-related issues that continue to impact the availability of treatment services. Moving forward, the industry must prioritize the integration of evidence-based care with the necessary resources and support to ensure that individuals struggling with substance use disorders can access the treatment they need.
