Medicaid cuts force healthcare-for-homeless program to close shelter, lay off staff

Looming Medicaid cuts are forcing a healthcare program for homeless residents of Boston to shut down one of its facilities and lay off staff. 

The organization, Boston Health Care for the Homeless Program, is expected to dismiss 25 workers on Oct. 10, including those serving in addiction recovery. In an announcement, the union representing the workers noted that recovery services are crucial to curb substance abuse in the area.

The group is a nonprofit charity; however, it requires paid staff to remain operational. Its CEO, Stan McLaren, told the Boston Globe that layoffs were announced internally earlier this month. Cuts include not only administrative and support staff but also clinicians who provide direct care to patients. 

Along with the staffing cuts, the program is shuttering a respite facility in Jamaica Plain, Massachusetts, referred to as the Stacy Kirkpatrick House. The facility has 20 beds for homeless individuals, and gives them a place to stay if they’re injured or sick and in need of supportive healthcare services. 

Of the 25 people set to lose their jobs, 18 worked at the Stacy Kirkpatrick House, reporters confirmed. In totality, the layoffs represent 4% of Boston Health Care for the Homeless’s workforce. Notably, the charity said it does not expect further cuts; however, it was only able to offer current employees a menial cost of living raise. 

The Boston Globe reported that 75% of operations are funded by Medicaid, and Boston Health Care for the Homeless is expected to lose $7 million next year.

Medicaid cuts exceeding $800 billion were part of the One Big, Beautiful Bill Act, signed into law by President Donald Trump in July. The act will gradually cut federal Medicaid spending by reducing provider taxes, which are used to fund state programs. 

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