PHILADELPHIA — Wedge Recovery Centers, a longstanding provider of behavioral health and addiction treatment in Philadelphia, will close its doors at the end of May, ending a 31-year chapter of service to the city’s most vulnerable residents.
The organization, which operates eight locations across Philadelphia, will begin winding down its operations in the coming weeks. Clients are being transitioned to alternative treatment programs with the assistance of local behavioral health authorities.
In a letter dated May 5 to staff and clients, CEO Jason McLaughlin cited mounting financial pressures as the reason for the closure. “Ultimately, with rising overhead costs, decreased census due to shrinking Medical Assistance enrollment, and lack of ability or interest from local and state entities to provide financial support, we find our position untenable,” he wrote.
Despite efforts to reduce costs, downsize, and explore merger opportunities, the organization has faced three consecutive years of financial losses.
Founded in 1994 by Filipino immigrants Armando and Dr. Minda Magundayao, Wedge began in a wedge-shaped building at 67th Street and North Broad in North Philadelphia. It grew into a vital resource for outpatient mental health care, substance use treatment, and support for individuals with co-occurring disorders.
The organization will end substance use and psychiatric services by May 16. All remaining mental health outpatient programs, including psychiatry, will cease operations by May 30. To prevent gaps in care, clients may be eligible for six-month prescription refills during the transition.
The loss has resonated deeply with former staff and clients. Brennan Jordan, a licensed professional counselor who worked at Wedge from 2011 to 2014, described it as both a professional crucible and a haven. “It felt like home. It was some of the hardest work I’ve done in my career, but also some of the most rewarding,” he said. “It’s really sad… if public mental health programs don’t get more funding, closures like this will just keep on happening. It’s going to hurt everyone.”
Wedge operated under Community Behavioral Health (CBH), the city’s nonprofit that coordinates mental health and substance use services for Medicaid recipients. CBH CEO Donna Bailey confirmed the organization will send notices to clients and collaborate with Wedge to ensure a smooth transition to other providers.
“They have taken a very proactive and aggressive approach to all the steps and transitions,” Bailey said. “Despite the sad circumstances, other programs do have the capacity to take on new clients.”
CBH’s Chief Operations Officer Andrew Devos emphasized the organization’s commitment to helping clients and, in some cases, staff find new placements. “In these scenarios, people will often want to just go where their therapist is going,” he said.
Wedge leaders expressed deep gratitude to the community, clients, and staff in their farewell message. “You are the embodiment of our mission,” McLaughlin wrote. “Our appreciation goes out to all who supported and lived out the mission of the Wedge Recovery Centers — you will remain in our hearts.”
