Landmark is reopening two Indiana Medicaid facilities

I am being told Landmark is reopening Praxis of Fort Wayne by LR in May. LR is planning on reopening Praxis of Carmel by LR in November. Apparently Matty claims LR will have all of their medical contracts back.

Here is the full text from Matty’s email:

Team,

It is with great joy that I can announce we have reached a settlement agreement with Indiana’s Department of Mental Health and Addiction (DMHA) concerning the revocation of our licensure last summer. We have been cleared to reapply immediately for licensure at our locations in Bluffton and Carmel. Assuming we reopen these buildings and demonstrate compliance with Indiana’s regulations, we will be able to reapply for licensure at Mishawaka one year from today.

Many of you know we have been in discussions with DMHA since last December. I would be remiss not to mention that these discussions commenced after DMHA’s surprise visit to IND last September. The department took note of the monumental changes we had made as an organization in the changes we had made as an organization in the wake of the events at Mishawaka, and were incredibly pleased with the level of care provided by Nicole Carter and the team at IND. That survey gave us an audience to outline in detail all of the changes we made last fall to improve safety, staffing, and patient care. DMHA was further pleased with our presentation last December, and we quickly reached terms to reopen within the state. The delay since then is related both to DMHA’s political commitments during the Indiana legislative session, which ran from January to March, and internal debate at DMHA over if and how we should issue a press release concerning the reopenings. Ultimately, we mutually agreed not to make a statement to the press or external parties, although we remain free to discuss both internally and to external referral partners.

It has been an arduous year. We have shrunk considerably, both at the Facility Support Center and in terms of the number of facilities we operate. While this has been painful, it has been necessary to achieve a sustainable company that can operate profitably, grow slowly, and continue our mission to save a million lives in the next hundred years. We save a million lives in the next hundred years. We have cut our central overhead by 75%, which allows us to breakeven at 75% occupancy. We have shifted from a business that aimed to achieve 50/50 balance between commercial insurance and Medicaid to one that primarily focuses on Medicaid. I believe that is where the mission is, as that population is severely underserved. It also allows more predictable census at lower marketing spend. We have abandoned a strategy of rapid expansion for a more sustainable business plan of opening 4-5 great facilities per year. The net of these decisions is to remove substantial financial pressure and allow us to operate sustainably in the long term. We have shrunk to grow back better.

I understand many of us have sacrificed quite a bit to get to this point. It has been bumpy, and I cannot say the bumps are over yet, but the future is bright. DEN has been a bright spot, maintaining a wait list for the patients they can safely serve. They have made great strides in hiring and should be able to expand sometime in the next 30-45 days. PLIT has obtained Medicaid contracts and will be able to start seeing more patients in May. The Business Development Team has made great strides in April, winning back key accounts in Kentucky and Ohio winning back key accounts in Kentucky and Ohio and seeing a notable increase in census at those facilities. As a result of these victories, our outlook as a company remains stronger than ever, and I expect you will notice a difference come June. It has been a long and painful road, but, as a result of your hard work and dedication, it will have been worth it.

In terms of Indiana, we expect to get our licenses within 30 days, and then to obtain payer contracts $60-90$ days after that. Our plan is to reopen PFWA sometime around Labor Day, and then to reopen PIND around Thanksgiving. We also have two buildings to open in the Columbus area, another building in Colorado Springs, and one in Pittsburgh. We will pace ourselves and open responsibly, with timing determined by what the organization can handle, rather than forcing the organization to handle a preconceived opening pace. Beyond these buildings, any future expansion will be considered carefully, focused on growing density within states we know well and limiting entrance to new states. We do not have to be the biggest, but we will be the best.

Above all else, I want you to know I see you, and I appreciate you. Keep your heads held high. Be proud of the impact you have on our patients day after day. I am proud to have the privilege to lead this organization. It has not been easy, but the payoff is nearly here, and the mission is alive and well. I could not have gotten here without you, and for that I am forever grateful. May you celebrate this victory with your teams tomorrow, and let’s have a great Friday!

Best,
Matt

Matt Boyle
Chief Executive Officer
Cell: 469.394 .9083 Admissions: 855.950 .5035
Email: Matt.Boyle@LR.com
Address: 720 Cool Springs Blvd. #500 Franklin, TN 37067

Update April 21, 2024

Landmark reached a deal with the state of Indiana to surrender its right to appeal the state’s revocations. Landmark can apply for new certificates to operate Praxis Treatment of Fort Wayne by LR and Praxis of Carmel by LR. Landmark has to wait a year before applying for Mishawaka’s certification. The agreement limits the census to 32 beds. If LR wants to increase the limit, they have to submit evidence they have hired the equate number of staff to accommodate the requested count. In order to have over 100 patients, LR has to demonstrate they have a full-time onsite physician. These facilities can only accept Medicaid.

Another interesting item is LR advised about a change of ownership regarding the LR of Indianapolis facility. One person commented that Cliffy is attempting to sell his stake in the company. Cliffy is making keeping Matty on as CEO as a part of the agreement.