Compass Health cuts child and family therapy services in Everett

EVERETT — Compass Health is shuttering its child and family outpatient therapy program in Everett, the nonprofit confirmed this week.

Compass Health will stop the program at 4526 Federal Ave., CEO Tom Sebastian said, but plans to continue providing outpatient therapy for families at other sites across Snohomish County. The nonprofit also plans to help Everett clients via telehealth.

The move is part of a company-wide reorganization due to rising service costs, Sebastian said. Compass Health, like other health care nonprofits across the state, has struggled to overcome a workforce shortage, poor insurance reimbursement rates and high client need.

The changes will affect 16% of Compass Health clients and 6% of its workforce — or 37 employees — the nonprofit said in a statement. Aside from the Federal Avenue location, the nonprofit confirmed its reducing staff and services at other sites but declined to share specifics.

Compass Health announced the news, along with layoff notices, to Everett employees at an emergency staff meeting Tuesday, said one worker, who requested anonymity for fear of retribution. The worker said she received a layoff notice after six years with the nonprofit.

The Everett team served about 300 families, she said, with some therapists taking on 50 clients at a time.

“This is the hub for Compass Health services in the county,” she said. “It’s baffling.”

Compass Health is working to help Everett families relocate to other therapy sites, Sebastian said, and is adding staff positions at those sites. Workers laid off from the Everett site are encouraged to apply for other positions, he said.

The worker said the location shift is a huge barrier for families, as Lynnwood and Smokey Point are the closest child and family outpatient therapy sites to Everett.

“A lot of our clients don’t have working vehicles, they don’t have money for gas, they’re single parents,” she said.

And even if families can get around, she said, most outpatient therapy programs are “overflowing” to the point they’re either closed to new clients or have a waitlist.

“There is nowhere else to go,” she said.

All other services at the Federal Avenue campus, including the intensive family outpatient program known as WISe, will continue, Sebastian said. Those services have more sustainable reimbursement rates, he said, and benefit from an annual fundraising event. The nonprofit plans to expand its intensive therapy services for children and adults, including new spots for laid-off workers.

‘Fundamentally flawed’

In 2022, Snohomish County named mental health care access and childhood trauma prevention as two of five top health care needs in the county. Nearly a quarter of students in the county have experienced Adverse Childhood Experiences, or “potentially traumatic” childhood events, according to a county health assessment published last year.

But while Compass Health seeks to provide crucial mental health support for families, its financial deficit is getting worse. The nonprofit saw an operating loss of $169,000 in 2022, and confirmed its total loss was $1.8 million in 2023.

Office space costs hamper the nonprofit’s ability to afford services, Sebastian said. By embedding clinicians at other sites, Compass Health “eliminates much of that burden,” he said.

“We’re just trying to find the most efficient way to keep services open,” he said.

To reduce gaps in access, Compass Health only provides care for families on Medicaid. But the state’s current reimbursement model for behavioral health programs is “fundamentally flawed,” Sebastian said.

Right now, the reimbursement model is fee-for-service, where providers are paid for each service performed. That means a program can only bill for specific services, and billing doesn’t guarantee payment. In particular, outpatient therapy services have strict billing regulations, Sebastian said.

For the past seven years, Compass Health has advocated for the certified community behavioral health center model. In this model, the state pays providers based on a predetermined, fixed amount. Several states have piloted the model with positive results. The Federally Qualified Health Center of Snohomish County uses a similar payment plan.

“It would allow us to project our costs over the next year to keep our doors open,” Sebastian said.

In 2020, Compass Health closed three outpatient sites in Marysville, Monroe and Snohomish after a drop in client visits due to COVID-19 precautions. And in 2022, the nonprofit closed the only behavioral health crisis center in the county, cutting 29 jobs and leaving 254 clients to seek support elsewhere.

Last October, the nonprofit began construction on a $68.5 million intensive behavioral health facility in Everett to replace the crisis center. The new facility is part of Compass Health’s three-phase plan to transform the 3300 block of Broadway into a regional center for health care and low-barrier housing.

The worker argued Compass Health should focus more of its money and efforts on children, because mental health intervention at a young age is “crucial.”

“We’ve had kids coming here since they couldn’t see above the (welcome) desk,” she said. “Now they’re displaced.”

Those experiencing a mental health, substance use or suicidal crisis can find services by calling or texting 988, or calling the Crisis Services Line at 800-584-3578.

Sydney Jackson: 425-339-3430; sydney.jackson@heraldnet.com; Twitter: @_sydneyajackson.