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Important Update: Program Closures

To our Partners, Stakeholders, and Supporters,

We want to begin by expressing our deep gratitude to our staff and their unwavering dedication and commitment to our mission of serving underserved and unfunded youth. They have been the heart and soul of our organization, and their hard work has made a profound impact on countless lives.

Phoenix House Texas has been unsuccessful in negotiating sustainable rates with HHSC that would allow us to continue program operations on the treatment side. Over the last several years, the number of unfunded youth we serve has continued to grow, and we have adjusted to work to meet the need of unfunded and underfunded youth specifically over youth with alternate treatment options. Despite our best efforts to balance staff compensation and reduce overhead costs, the current financial landscape poses insurmountable challenges.

We want to thank all of the representatives, organizational leaders, and individuals that have been actively involved in the work with HHSC on rate increases and have shared the stories of their programs and challenges. We are hopeful that a finalized and sustainable rate is offered for providers continuing services.

It is with heavy hearts therefore that we share the board and organization’s decision to close all treatment programming (residential, outpatient, and assessments) by the end of September 2023. Our organization has always prioritized serving the underserved and unfunded youth, and we are committed to our mission. However, the financial constraints imposed by these reimbursement rates leave us with no viable path forward to continue offering services at such a substantial loss.

The board and organization are fully committed to prevention services and want to invest in models that are financially sustainable to ensure that Phoenix House Texas can continue to have a positive impact on Texas communities for years to come.

We understand that this decision will have a significant impact on the youth in need of treatment and the partners that we work with. We are working around the clock to ensure a smooth transition of all current patients, and we are working to coordinate plans for referrals moving forward with providers who are able to step up to take these youth. We are so grateful for the countless leaders, representatives, and providers that have stepped up to help ensure this process is as smooth as possible.

Thank you to all who have volunteered their time, helped a patient in need, or collaborated with us for a larger youth recovery and treatment effort across Texas. Although it is heartbreaking to see these 28 long years of programs come to an end, we are optimistic and fully engaged in expanding and supportive our prevention services.

With warm but sad regards,


Drew Dutton, President & CEO
MEd, MBA, MAPP, LPC-S, LCDC, ACPS Phoenix House Texas

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