Youth mental health care provider LifeSpan of Minnesota Inc. last week filed for Chapter 7 bankruptcy.
The news comes less than a month after the Burnsville center closed its doors indefinitely. According to a post on LifeSpan’s website, the center’s last day of operation was April 26.
In an email to TCB, CEO Traci Hackmann says it's become more difficult to adapt to "the ever changing market" in the past few years.
"The expense of large buildings, an interplay between the agency and public school districts, and how insurance rates get determined all had an impact on the company closing," she writes.
LifeSpan in 2012 was caught in a legal tangle with public school districts in Minneapolis and St. Paul, which decided to stop paying for students' tuition at the center.
The center at 12425 River Ridge Boulevard served children between ages 5 and 18 with a mental health diagnosis, including ADHD, depression, autism and bipolar. Clients attended the center’s youth transition program for six to nine months, according to LifeSpan’s website.
The center provided day treatment certified by Minnesota’s department of human services. The program was aimed at helping youth develop “adaptive coping, problem-solving, and socially acceptable behaviors so that the clients can regulate their emotions and begin to identify and express feelings more appropriately,” the website said.
Hackmann says there are no plans to reopen the center at this point.