Layoffs and Closures in Youth Behavioral Health: A Growing Trend
Staffing Adjustments at Comprehensive Life Resources, Newport Healthcare, and Clarvida
By Chris Larson | October 2, 2026
A recent wave of layoffs has hit the youth behavioral health sector, with several programs announcing closures and significant staffing cuts.
Comprehensive Life Resources, Newport Healthcare, and Clarvida:
- Comprehensive Life Resources is closing its Pearl Youth Residence in Tacoma, Washington, on November 21, impacting 78 staff members.
- Newport Healthcare's teen residential facility in St. Cloud, Minnesota, has already closed, resulting in the termination of 149 staff as of October 1st.
- Clarvida will close two Project RENEW locations: one in Anaheim and another in Santa Ana, California, on November 1st, affecting a total of 60 employees.
Challenges and Factors:
According to a statement from Comprehensive Life Resources, the Pearl Youth Residence has faced economic challenges, including:
- Unrealized facility expansion.
- Constrained public funding since 2018.
- Increasing patient acuity and wage inflation driven by COVID.
The competition with nearby state hospitals offering higher wages has also contributed to the turnover issues.
Shifting Trends in Youth Treatment:
These closures reflect a broader trend towards treating youth in home, community, or outpatient settings. The statement from Comprehensive Life Resources highlights their advocacy for more cost-effective, community-based care options.