Federal health officials are preparing to cut off Medicare and Medicaid payments to Laurel Ridge Treatment Center, the campus-style psychiatric and addiction hospital on San Antonio’s North Side. The Centers for Medicare & Medicaid Services plans to end the provider agreement on April 30, 2026, which would stop federal payments for patients admitted on or after that date. Patients admitted before April 30 may remain covered for a short transition period. Laurel Ridge, for now, says it is open and continuing care for current patients.
What CMS ordered
In a formal termination notice from the Centers for Medicare & Medicaid Services, the agency says Laurel Ridge has not “substantially comply[ed]” with Medicare and Medicaid health and safety requirements and that the provider agreement will end on April 30, 2026. The notice names the center’s campus and states that Medicare will not make payment for services furnished to residents admitted on or after that date. For patients admitted earlier, federal payment may continue for up to 30 days after April 30, giving a narrow window for any transition.
Center pushes back
Laurel Ridge leadership insists the campus remains open and that staff are continuing to care for patients while the facility responds to regulators’ concerns, according to KSAT. CEO Ashley Sacriste told reporters the center is “hopeful that we can work collaboratively with CMS to clarify the basis for its findings and to demonstrate the facility’s ongoing compliance.”
Safety problems preceded the action
The federal move did not come out of nowhere. It follows months of reporting and inspections that cited staffing shortages and unsafe conditions. As detailed by the San Antonio Express-News, three patients died at Laurel Ridge in 2025, and investigators documented instances where staff failed to make required checks, including one period that stretched nearly an hour when state guidance called for checks every 15 minutes.
What patients and payers should know
According to the CMS notice, Medicare will not pay for services furnished to residents admitted on or after April 30, 2026, and federal financial participation for Medicaid residents will not apply for admissions on or after that date. For residents admitted before April 30, federal payment may continue for up to 30 days. That limited grace period could mean transfers, new billing arrangements or both for some patients. The termination notice includes agency contact information and the formal record of the action for providers and beneficiaries who want to review the details.
Leadership turmoil and past allegations
The facility has also been dealing with leadership turmoil. Its former CEO, Jacob Cuellar, was arrested in 2024 on charges of sexually abusing a juvenile, reporting from KSAT shows, and Sacriste took over afterward. That high-profile episode, followed by the inspection findings, has only increased scrutiny on how Laurel Ridge operates.
Next steps and resources
Laurel Ridge says it will keep working with federal regulators while continuing to treat patients currently on campus. Families and patients with questions about coverage, possible transfers or payment should contact the facility or their insurer. Laurel Ridge lists admissions contact information on its website, and the CMS termination notice is available online with details about the effective date and transition rules. The campus is listed at 17720 Corporate Woods Dr., San Antonio, TX 78259.
