Post updated at 5:36 p.m. Wednesday, May 21:
Nearly every area of Bert Nash Community Mental Health Center will see job cuts, and some employees will see salary cuts between 2% and 15% as the center has “reached the level of a financial exigency,” according to the center’s CEO.
The center is projecting a $3 million loss this year.
Bert Nash will eliminate 6% to 8% of staff positions, and managers will inform individual employees if their jobs have been cut by the end of the week, CEO Patrick Schmitz wrote in an email to staff on Wednesday.
“We’ve been actively working to reduce costs while preserving care, with a focus on long-term sustainability. Put simply, we are experiencing a steady rise in expenses, coupled with shortfalls in revenue and significant loss of grants and other funding sources,” Schmitz wrote.
“It’s become clear that America’s healthcare financing model is not properly aligned with the real and increasing demands on us and countless other safety-net providers.”
In addition, there will be temporary salary reductions for non-union employees: 15% for chief levels, 12% for senior directors, 6% for program managers and directors, 5% for program supervisors and 2% for all others, according to the email.
Bert Nash is Douglas County’s safety-net community behavioral health provider. It serves insured and uninsured clients of all ages with mental health and substance use treatment. It also operates the Treatment and Recovery Center, the county’s 24-hour crisis center, and the Mobile Response Team, and its services include case management and an outreach team that works with people experiencing homelessness.
The center is also offering certain eligible employees voluntary early retirement. The employees have until June 5 to apply, and the last day of employment for those who are accepted will be June 22.
There could also be “potential changes to department structure, service hours, and eligibility for financial assistance programs,” according to Schmitz’s email.
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The center’s workforce has more than doubled in recent years — to 415 staff members last year from 191 in 2018, according to documents Schmitz provided to staff. By those numbers, job cuts will most likely directly affect roughly two to three dozen people.
The center’s total number of clients served also rose to 6,142 in 2024 from 4,689 in 2018 — roughly a 31% increase.
But the center is “navigating significant financial challenges,” according to the documents. Its projected loss for 2024 is estimated at $576,000, pending completion of the center’s annual audit, and that is expected to worsen this year with the projected $3 million loss.
The number of uninsured people the center serves each month increased to 640 early this year, or 27% of total clientele, from 432 in 2023, or 22% of total clientele. “As of May 2025, BNC’s top three payer types include: 37% of clients have commercial insurance, 28% of clients are uninsured, and 27% are covered by Medicaid,” according to the documents.
“Unfortunately, many of our commercial insurance payors do not reimburse anywhere near the cost of providing the care delivered and our clients would struggle to pay their copays and coinsurance if they were not placed on the sliding fee scale,” the documents state. “This need has outpaced the amount of financial support provided for the sliding fee schedule.”
The documents lament Kansas’ failure to expand Medicaid but also say recent federal proposals to weaken Medicaid could further reduce access to care and funding for safety-net providers like Bert Nash.
“We remain concerned about efforts that would limit eligibility, reduce funding, or impose stricter requirements on vulnerable populations,” according to the documents.
In addition, the center has barely received 10% of the funds it recently requested from the state.
“In Fall 2024, BNC requested $998,000 from the State of Kansas, but only received $100,000, which became available in March 2025,” according to the documents. “Additional support is expected but may not arrive until after July 2025.”
The center has seen “significant cost increases” attributed to investments in artificial intelligence tools, which the documentation says are necessary to support staff with documentation, compliance and administrative workflows. Bert Nash has also added team members in “previously neglected areas,” such as finance, human resources and revenue cycle management, according to the documents.
Early this year, the center cut 65% of open positions for a savings of $2.5 million, and in the last three months it hasn’t filled 16 positions across multiple programs. It has also cut 90% of proposed new positions to save $1.5 million, according to the documents.
“We are heartbroken. These changes hurt our team and deprive our community of the critical services we are trusted to provide,” Schmitz wrote in his email to employees. “There will be fewer providers and administrative team members. These changes will have a profound impact — not just on employees and individuals, but on the broader community. We recognize the weight of these changes.”
Jeff Burkhead, a spokesperson for the center, said Bert Nash had no additional comments beyond what was emailed to staff.
Bert Nash executive team members in February told Douglas County commissioners that the center was considering selling its Bridges house, a transitional housing project that had been “very minimally used” at the time. Burkhead said the center is no longer considering selling that property “as it would result in the loss of housing for approximately four individuals.”
The center is celebrating 75 years serving Lawrence and Douglas County this year. An exhibit showcasing its history is on display at the Watkins Museum of History through Saturday, May 31.
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Mackenzie Clark (she/her), reporter/founder of The Lawrence Times, can be reached at mclark@lawrencekstimes.com. Read more of her work for the Times here. Check out her staff bio here.
More coverage:
Nathan Kramer / Lawrence Times
Molly Adams / Lawrence Times
Tricia Masenthin/Lawrence TimesBert Nash announces cuts to staff, salaries; center offering voluntary early retirement
Get mental health help in Lawrence
These resources are available 24/7 if you or someone you know needs immediate mental health help:
• Douglas County Treatment and Recovery Center: 785-843-9192; 1000 W. Second St. in Lawrence; trcdgks.org
• Bert Nash Community Mental Health Center: 785-843-9192; bertnash.org
• HeadQuarters Kansas: 785-841-2345; hqkansas.org
• National Suicide Prevention Lifeline: Dial 988; veterans, press 1
• SAMHSA Behavioral Health Treatment Services Locator and Helpline: 1-800-662-HELP (4357)
Latest Lawrence news:
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