Aurora Mental Health & Recovery announced April 30 that it will eliminate 111 positions, roughly 14% of its workforce, and close several programs after state and federal funding shifts left a $13 million-plus hole in its budget. Most of the affected roles are administrative and support positions, the nonprofit said, with only a small number of clinical jobs included. The reductions are scheduled to take effect June 30, and AMHR said it will work to avoid gaps in client care.
In a statement on its website, Aurora Mental Health & Recovery said state reimbursement changes and federal Medicaid reductions add up to about $6.5 million in lost revenue and a $7.2 million reconciliation payment that together create the shortfall. “AMHR is taking this action with a heavy heart,” CEO Kelly Phillips-Henry said. The organization said it has filed a Worker Adjustment and Retraining Notification with the state and will provide affected employees with 60 days' notice, severance and outplacement services.
Programs and positions affected
The nonprofit said it will close programs that no longer have sustainable funding, including behavioral health services at Mrachek House, the Youth Leadership Academy, adult-education offerings and victim-assistance services at its Cultural Development & Wellness Center, as part of the staffing reductions, according to Colorado Politics. That report notes the cuts are primarily administrative and support roles and says AMHR has initiated a formal dispute with the state's Medicaid agency over the reimbursement changes.
Budget shock behind the cuts
State budget moves this spring put added pressure on safety-net providers: the Joint Budget Committee trimmed Medicaid provider payments as lawmakers worked to close a multi-hundred-million-dollar shortfall, The Colorado Sun reported. Those reductions, combined with federal changes, left organizations that operate on thin margins with little cushion for unexpected reconciliation payments or rate drops.
Support for staff
AMHR said it tried to contain costs first, including leadership furloughs, a hiring freeze, and cuts to administrative spending, and that those steps preserved the equivalent of 22 positions but still did not close the gap. In its statement, Aurora Mental Health & Recovery said affected employees will receive severance, outplacement services, and the opportunity to apply for remaining openings for fiscal 2027.
Local outlets quickly picked up the announcement; as reported by CBS News Colorado, the cuts affect an organization that provides crisis and addiction services to Aurora residents, and leaders said they will try to preserve core clinical services where possible. Community advocates warn layoffs at major safety-net providers can ripple into courts, hospitals, and shelters that rely on their services.
Legal note
AMHR said it filed a WARN notice with the state and will give a 60-day notice period to affected employees; that aligns with Colorado's implementation of the federal WARN Act, which generally requires employers to provide 60 days' advance notice for covered mass layoffs, per the Colorado Department of Labor and Employment. Workers and local rapid-response teams can access reemployment and training assistance under those procedures.
What to watch next
Advocates and trade groups say AMHR's move is part of a broader strain on the safety net: Colorado Politics cites a March survey showing a majority of community behavioral-health providers are operating at break-even or a loss and many are scaling back services. AMHR said it will continue to press payers and policymakers for changes that would restore stability and protect access to care for Aurora residents.
