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LOUISVILLE, Ky. (WDRB) -- "The Lighthouse" -- a lifeline for teens suffering from drug and alcohol addiction -- will soon end its service.
It marks the latest loss for financially fluxed Seven Counties Services.
"It's just a perfect storm of things coming together that have forced us to make an unfortunate decision," said Kelley Gannon, COO of Seven Counties Services.
Leaders say the lighthouse is roughly $500,000 in the hole. Changes in Medicaid made reimbursements harder to get. So one of the only teenage drug and alcohol residential rehab centers in Kentucky -- the only place housing teenage girls -- is closing July 13.
"I was very shocked to see the decision, frustrated for all the teens who will struggle, and incredibly sad because this program was powerful," said Jenni Garmon, a Lighthouse social worker.
It's the latest in a series of losses for Seven County Services.
The state's leading mental health and social service rehab agency filed for bankruptcy, stopped contributing to workers' state pensions, and just this week, revealed some accounting positions would be outsourced.
Mangers blame healthcare reform and changes in the state legislature.
"We'll look at each piece of our business process and find out where we can find efficiencies and be better in the business part of the world," said Abby Drane, CFO of Seven Counties Services. "Historically we have not had to do that with Medicaid because it was so easy to bill. That's why they put managed care in place: to better manage the business of healthcare."
Former lLighthouse client Andrew Davis said, "I've got a healthy relationship with my family and friends today, and I am truly grateful for everything the Lighthouse has done for me."
The Lighthouse has had 600 graduates over the last 20 years. Seven Counties plans to launch an intensive outpatient program to replace the 24/7 teen rehab house.