Shipowick-Smith Counseling Closes Abruptly Amid Allegations of Fraud
Former patients say they had less than 24 hours notice and former employees have yet to receive their final paychecks
*Note: Some of the names of the subjects in this story have been changed at their request due to fear of reprisal.
When Shipowick-Smith Counseling LLC in Wenatchee abruptly closed at the end of April it left patients and staff members confused and frustrated.
And in a region where it can take six to eight months to get an appointment with a mental health care provider, it put even more strain on an already-stressed system. According to the Chelan-Douglas Health District, the ratio of average citizens to mental health care providers is 190 to one in Chelan County and 1580 to one in Douglas.
However Shipowick-Smith’s closure is notable not only because of the impact it has on the rest of North Central Washington’s mental health system, but also because of the way it was unexpectedly shuttered.
Multiple patients said they received less than 24 hours notice that their appointments were cancelled and the business would be closing.
Jaylah Young said that while she was at work on Monday, April 21 she got a voicemail from her counselor who said they would have to cancel their appointment for the following day, and that the business was closing by the end of that week.
“The even more frustrating thing about this whole thing is that I had just switched over my medical insurance to specifically see that therapist I was seeing at Shipowick,” Young said.
Another patient who asked to remain anonymous recounted a similar experience.
“I just randomly got a call on a Sunday afternoon, pretty late in the day,” she said. “Just letting me know they were shutting down.”
It had taken that patient, who we’ll call Victoria, about six months to get to a place where she was ready to seek counseling for her PTSD. Her condition stems from trauma she endured in a car wreck and she has had trouble riding in vehicles since then, especially if someone else is driving. Therapy helped her get to the point where she can drive herself around. Now she’s not sure what she’ll do.
Former employees describe the firm’s owner, Melissa Payne, as unstable, unqualified, abusive and dishonest. They say Payne’s financial problems and inability to manage the business started coming to a head late last year – when their paychecks started bouncing.
The receptionist sold her car to pay rent and other employees said it made holidays difficult. When they did get paid it was via personal checks.
They also said Payne was behind on rent and utilities for the office space at 11 Spokane Street and is being sued by Heritage Bank for defaulting on a more than $200,000 business loan.
As of mid-May all the former employees I spoke with have yet to receive their final paychecks.