Landmark Recovery, a Nashville-based addiction treatment provider, has reached a settlement with the Indiana Division of Mental Health and Addiction (DMHA), allowing the company to resume operations in the state after a turbulent period that included license revocations, public scrutiny, and financial difficulties. This settlement is a critical step for the company, but it comes with stringent conditions designed to ensure improvements in its operations, compliance, and patient care. The goal is to ensure that Landmark can continue its mission of addiction treatment recovery in a way that meets the needs of the community and regulatory requirements.
The Struggles of Landmark Recovery: A Year of Crisis
In the summer of 2023, Landmark Recovery found itself at the center of controversy after the DMHA revoked the licenses of three of its four addiction treatment facilities in Indiana—located in Mishawaka, Carmel, and Bluffton. The revocations followed a series of tragic events, including the deaths of three patients at the Mishawaka facility. Reports surfaced about severe understaffing, unsanitary conditions, and frequent police responses to the locations. These incidents, combined with public outcry over the state of care provided, prompted state regulators to take action.
The Mishawaka facility was the epicenter of the scrutiny, with reports indicating that patients were not receiving the appropriate level of care, supervision, and support. As the public became aware of the circumstances, the pressure on Landmark Recovery intensified. In addition to the deaths, there were claims of poor working conditions, underqualified staff, and inadequate resources to provide the necessary treatment for individuals struggling with addiction. These issues raised significant concerns about the effectiveness of addiction treatment recovery in the affected facilities.
In response to the license revocations, Landmark Recovery faced a wave of operational and financial difficulties. The company laid off nearly 1,000 employees as a result of the loss of its facilities, signaling the severe impact the closures had on its workforce. As if the operational challenges weren’t enough, the company also faced mounting financial stress, including eviction from two of its facilities for failing to keep up with rent payments. Public court records reveal that Landmark settled a dispute with Waterstone Properties, the landlord of several of its facilities, over non-payment. As part of the settlement, management of the facilities transitioned to another company, effective May 1, 2025.
Beyond the operational and financial troubles, Landmark Recovery was also embroiled in legal disputes. In one high-profile case, a former employee filed a lawsuit accusing the company’s owner, Cliff Boyle, of sexual harassment. This legal battle added to the company’s already tarnished reputation, further complicating its efforts to regain credibility and trust in the addiction treatment recovery industry.
A Path Forward: The Settlement Agreement
Despite the challenges and setbacks, the settlement agreement reached between Landmark Recovery and the DMHA represents a glimmer of hope for the company’s future operations in Indiana. The agreement, signed on April 18, 2025, allows Landmark Recovery to begin the process of reopening its facilities and expanding its footprint in the state, but it comes with numerous conditions that must be met before the company can fully resume operations. These measures are aimed at ensuring that addiction treatment recovery is provided in a safe, compliant, and effective manner.
1. Demonstrating Adequate Staffing and Compliance
One of the most significant requirements of the settlement is that Landmark Recovery must demonstrate its ability to meet staffing requirements and comply with all state regulations before applying for new facility certifications. The company has faced significant criticism for its staffing shortages, which were blamed for many of the issues at its facilities, including patient deaths and inadequate care. As part of the settlement, Landmark will need to prove that it has the necessary staff in place to meet state standards before reopening or expanding its operations in Indiana. This is an important step in ensuring that addiction treatment recovery services are adequately staffed and available to those who need them most.
2. The Fate of the Closed Facilities
The revocation of Landmark’s licenses in Mishawaka, Carmel, and Bluffton was a turning point for the company. However, as part of the settlement, Landmark is required to forfeit its appeals to reopen these facilities. Instead, the company must reapply for certifications to operate these locations, subject to the strict compliance requirements outlined in the agreement. Importantly, Landmark cannot apply for certification for the Mishawaka facility until one year after the settlement’s effective date. This waiting period reflects the seriousness with which the DMHA is treating the company’s past failures. The focus will be on creating a fresh start for addiction treatment recovery in these communities.
3. Restrictions on New Facility Applications
Landmark Recovery will be limited in its ability to expand its operations in Indiana. The company can only apply for new facility certifications once every six months, and any new facilities will be restricted to 32 beds initially. If Landmark can demonstrate sufficient staffing, it may be allowed to apply for additional beds, but any facility that applies for 100 or more beds must have an on-site physician. This requirement ensures that Landmark’s larger facilities will have the medical support necessary to provide comprehensive care to patients. The primary goal here is to provide a safe and effective environment for addiction treatment recovery.
4. Ongoing Compliance Reporting
To ensure that Landmark remains compliant with the terms of the settlement, the company will be required to submit compliance reports every two weeks for any new facilities for up to one year after the settlement’s effective date. This bi-weekly reporting is a significant obligation that will help state regulators closely monitor the company’s progress. Furthermore, for the next two years, Landmark will not be allowed to apply for new certifications unless its existing facilities have met or exceeded the compliance requirements for the previous three months. Regular compliance checks are vital in ensuring the company’s commitment to addiction treatment recovery.
5. Community Feedback Requirement
As part of the settlement, Landmark Recovery will be required to provide documentation of feedback from community groups where it plans to open new facilities. These groups include local elected officials, emergency responders, hospital systems, and regional recovery hubs. This provision aims to ensure that Landmark’s operations are aligned with the needs and concerns of the communities they serve, and it gives local stakeholders a voice in the process. This community involvement is crucial for fostering trust and transparency as Landmark works to improve addiction treatment recovery services in Indiana.
6. Structural Changes at the Indianapolis Facility
The settlement also includes provisions for changes at the facility located at 6330 Digital Way in Indianapolis. While this facility was not affected by the license revocations, it will undergo structural ownership changes as part of the agreement. The new ownership structure is a key term of the settlement, and Landmark must ensure that these changes are implemented smoothly to maintain its operations at the Indianapolis location.
7. Deficiency Notices and Corrective Action Plans
Landmark will be prohibited from applying for new certifications if any of its facilities receive a deficiency notice that includes 10 or more “materially different statutes.” In such cases, Landmark will be required to demonstrate six months of compliance with a corrective action plan before it can apply for new certifications. This provision further emphasizes the importance of maintaining high standards of care and compliance across all of Landmark’s facilities, ensuring that addiction treatment recovery is not compromised.
A Fresh Start: Landmark Recovery’s Future in Indiana
The settlement agreement represents a significant turning point for Landmark Recovery, but it also comes with a clear message: the company must prove its ability to operate safely and effectively before it can resume full operations in Indiana. Landmark Recovery must now focus on meeting the stringent conditions laid out by the DMHA in order to regain the trust of both state regulators and the communities it serves. If Landmark can successfully demonstrate its commitment to providing high-quality addiction treatment recovery services, it could regain its standing in Indiana and continue offering support to individuals struggling with addiction.
The company’s future in Indiana hinges on its ability to address past shortcomings, including staffing issues, patient safety concerns, and compliance with state regulations. If Landmark can meet these requirements, it may be able to rebuild its operations and continue providing addiction treatment recovery services to individuals in need. The road ahead will be challenging, but the company has a chance to prove that it can make a positive difference in the lives of those seeking help.
