Maryland’s Chestnut Lodge Psychiatric Hospital Closes its Doors

April 30, 2001 Maryland's Chestnut Lodge Psychiatric Hospital Closes its Doors Chestnut Lodge in Montgomery County, Maryland closed its doors on April 27, 2001 following a last-ditch effort this spring to keep it alive. The Montgomery County Council voted down a $3 million bailout measure which was designed to keep the mental hospital open. CPC Health Inc., which runs the 132-bed hospital, filed for bankruptcy in October 2000 after accumulating $11 million in debt.  The psychiatric hospital, founded in 1910, was nationally recognized for inpatient, outpatient and assisted-living programs. It served about 3,000 patients a . . .