AUSTINTOWN, OHIO (WCMH) — The local drug treatment center that is the focus of a federal investigation is laying off nearly all of its employees.
That bombshell came without warning Monday for many Braking Point Recovery Center employees. Employees across the state got a letter with the announcement that the center is laying off “virtually all of our employees” because the state is suspending its Medicaid contract.
Investigators wouldn’t say exactly why they were raiding the treatment centers, including one in Whitehall last week. The raids included the home and office of Ryan Sheridan, the executive director of the company. The FBI, IRS and DEA are among the agencies investigating.
The letter dated Monday said the layoffs are effective immediately.
The letter said the company can’t bill for services because the Ohio Department of Medicaid suspended its Medicaid contract. The letter was signed by Sheridan. He said he doesn’t know if the layoffs will be temporary or permanent.
On its Facebook page last Wednesday, the day of the raids, Braking Point said treatment and care would still continue and said “this is an administrative issue.”
The company hasn’t said if these layoffs mean treatment will stop at the centers. A rally was held in support of Sheridan on Friday.
Braking Point is based in Youngstown, with a location in Whitehall and on its website said a Wooster location is opening soon.