Oregon loses 29 residential beds as Letty Owings Center shuts down

The Letty Owings Center in northeast Portland will close its doors at the end of October, removing 29 residential treatment beds for pregnant and parenting people from Oregon’s healthcare system. This closure concludes a year in which the state lost approximately 20% of its total capacity for this specific population, according to estimates from InvestigateWest.

Letty Owings operated for 37 years as Oregon’s largest residential facility for women with substance use disorders who were also raising children under the age of five. The center was co-founded in 1989 by Nancy Anderson and Letty Owings, a former teacher, to ensure mothers could receive care without being separated from their infants. Central City Concern, the nonprofit that has managed the program since 1997, cited a growing financial deficit and the cost of necessary building repairs as the primary reasons for the shutdown.

Dr. Andy Mendenhall, chief executive officer of Central City Concern, stated that restructuring operations to meet rising client needs would have increased annual costs by $2 million. The organization projected a $1 million deficit for 2027, a figure that made continued operation difficult alongside infrastructure upgrades. Mendenhall noted that the state does not specifically track beds for pregnant individuals, though a 2024 analysis by HealthShare of Oregon estimated that roughly 550 pregnant people in the Portland area required treatment for psychosis, stimulant, or opioid use disorders that year.

Health officials warn that the reduction in availability will force more families into the foster care system and increase maternal mortality risks. Diana Louise Smith, a clinical lead for Project Nurture, said the center’s closure will likely result in deaths because patients are currently giving birth without a designated place for postpartum treatment. She noted that substance use and mental health are the leading causes of maternal deaths in Oregon during pregnancy and the first year postpartum.

Leaders from three other similar programs have raised alarms with the Oregon Health Authority regarding funding cuts and aging infrastructure. A spokesperson for Gov. Tina Kotek confirmed the governor has directed the health authority and the Department of Human Services to form a cross-agency team to address these issues. Kim Lippert, a communications officer for the Oregon Health Authority, said the team will begin meeting this month to identify practical recommendations for immediate risks and systemic funding gaps.

Central City Concern is also closing Laura’s Place, a transitional housing facility that housed approximately 16 women and their children annually after they completed treatment at Letty Owings. Tina Bialas, the center’s director, will be laid off at the end of November. She described the facility’s funding as a patchwork of Medicaid billing, grants, and community donations, including quilts and Christmas gifts from local churchgoers.

The state has worked to expand treatment capacity since 2023, creating more than 200 new beds with another 400 in development. However, officials remain uncertain how federal healthcare cuts will impact these efforts. Overdose deaths in Oregon began to decline in 2024, but the state’s rate of substance use disorders continues to exceed the national average.