Youth psychiatric facility under DHS investigation says deal reached with state, suspension lifted
Nexus Family Healing is under investigation by the Minnesota Department of Human Services (DHS) following reports of safety violations at its East Bethel youth psychiatric facility. The provider, which recently secured a $21 million contract with Hennepin County, faced a license suspension on May 15 due to concerns over suspected maltreatment and medication safety, according to DHS records.
Why is the East Bethel facility under investigation?
The Department of Human Services investigated a series of violations at the East Bethel site, including treatment services performed without supervision and medications not administered safely. DHS also cited unreported suspected maltreatment as a primary concern.
Matt Look, the East Bethel city administrator, stated that the facility generated 178 emergency 911 calls in 2025 alone. Look noted these calls involved assaults, children leaving the facility, and instances of self-hurting.
How does the Hennepin County contract fit in?
On Oct. 29, 2024, Hennepin County commissioners approved a three-year, $21 million contract for Nexus to operate the Youth Stabilization Center in Minneapolis. Former County Administrator David Hough justified the cost by stating that high-level care for these children costs a minimum of $2,000 per day.
Leah Kaiser, the Director of Behavioral Health for Hennepin County, described the need as urgent. Kaiser reported that 10 to 11 children were boarding in local hospitals or emergency departments daily because they lacked necessary care.
Were the safety violations known before the contract?
DHS licensing records indicate Nexus had three violations at the East Bethel location before the Hennepin County contract was approved. These included a maltreatment investigation memo and two correction orders.
A Hennepin County spokesperson stated the Minneapolis facility’s license is active and that Nexus was chosen through a “structured, competitive process.” The spokesperson added that the county works closely with providers to respond to complaints, though the county does not perform licensing functions.
Phil Krinkle of the Taxpayers League of Minnesota stated that thorough investigation of an entity’s past malfeasance is essential for any agency awarding a contract.
What happens next for Nexus Family Healing?
The current status of the East Bethel license remains a point of contention. While DHS suspended the license on May 15, Nexus Family Healing issued a statement claiming it reached an agreement with DHS and the suspension has been lifted.
It is possible that DHS may provide official confirmation regarding the license status. Additionally, the county may continue to monitor the Youth Stabilization Center’s performance, as the $21 million payout is intended to be temporary until Medicaid funding is established.
Frequently Asked Questions
What specific violations did DHS investigate at the East Bethel facility?
DHS investigated unreported suspected maltreatment, the unsafe administration of medications, and treatment services conducted without supervision.
What is the financial scope of the Hennepin County agreement?
Hennepin County approved a three-year contract totaling $21 million for Nexus to run the Youth Stabilization Center in Minneapolis.
Has the license suspension for Nexus been resolved?
Nexus Family Healing claims an agreement was reached with DHS and the suspension was lifted, though official confirmation from DHS is pending.
Do you believe local governments should have more oversight over the licensing history of healthcare contractors?