Just weeks after Minnesota regulators determined children at a Nexus Family Healing psychiatric treatment facility faced an “imminent risk of harm,” the nonprofit has been allowed to resume operations under a settlement agreement with the state.
According to Minnesota Department of Human Services (DHS) licensing records, Nexus East Bethel Family Healing currently holds an active license to operate its Psychiatric Residential Treatment Facility in East Bethel.
The facility is licensed to serve up to 40 youth ages 10 through 21.
The reinstatement follows a June 12 settlement agreement that lifted DHS’s temporary immediate suspension order against the facility.
As Alpha News previously reported, DHS suspended the facility after citing numerous deficiencies, including failure to protect residents’ basic rights, failure to report suspected maltreatment, unsafe medication administration, inadequate staffing and supervision, poor responses to safety risks, and insufficient monitoring of safety policies.
“This action is based on a determination that children served by your program are at an imminent risk of harm,” DHS wrote in its suspension order.
The facility housed 21 youth at the time the suspension was issued.
The East Bethel facility has been subject to state enforcement actions in the past. Public licensing records show multiple maltreatment investigative memorandums, correction orders, and fine orders dating back to 2024.
Those records remain publicly posted on the state’s licensing website alongside the settlement agreement and the amended suspension order.
Alpha News asked DHS what changes led the agency to allow the facility to resume operations, whether it continues to stand by the findings in its suspension order, and how many licensing and maltreatment investigations remain open.
DHS told Alpha News it continues to stand by the findings that led to the temporary immediate suspension.
“The [suspension] order details the reasons for the temporary immediate suspension,” a DHS spokesperson said. “Based on the findings, DHS could not ensure the health and safety of the children served at the time.”
The agency said the suspension was lifted after Nexus implemented corrective measures and agreed to the terms of the settlement.
“The license holder’s implementation of steps to enhance resident health, safety and supervision, and their agreement to the terms of the settlement were sufficient to lift the temporary immediate suspension,” DHS said.
DHS declined to disclose how many licensing or maltreatment investigations remain open, citing data privacy laws. However, DHS appeared to imply that investigations are ongoing, saying any further licensing action “will depend on the outcome of the investigations.”
Alpha News first learned of the facility’s reinstatement from Nexus Family Healing. In an email to Alpha News about reinstatement, a spokesperson for Nexus Family Healing wrote “I have no other details at this time.”
Hennepin County center under the microscope
The development comes as Nexus remains under scrutiny over its sister operation in Minneapolis — Hennepin County’s Youth Stabilization Center — where questions continue to swirl about the facility’s costs and funding model.
Earlier this month, Alpha News reported that Hennepin County committed roughly $21 million over three years to Nexus Family Healing’s new Youth Stabilization Center, despite the county initially allocating just $1 million per year for the project.
In recent weeks, an X account known as “Minnesota Staff Fraud Reporting Commentary,” which describes itself as representing more than 1,000 concerned Minnesota state employees, has challenged the contract’s expansion and asserted there were no internal DHS discussions about Medicaid reimbursement.
The account challenged statements made by Hennepin County Commissioner Jeff Lunde, who previously said county taxpayers are covering $6 million of the contract’s roughly $7 million annual sum due to Medicaid reimbursement delays at DHS.
In Minnesota, Medicaid is administered by DHS.
“… at MN DHS, we have had NO discussions about Medicaid reimbursing Hennepin County for their Youth Stabilization Center,” the account posted on X.
Who is telling lies here? Jeff Lunde, Leah Kaiser, others at Hennepin County telling lies?
Jeff Lunde claims "We are missing $6 million a year for Medicaid reimbursement eligibility due to the delays in MN DHS acting. The missing $6 million is being covered by Hennepin County… https://t.co/ZtR3iTtmEQ
— Minnesota Staff Fraud Reporting Commentary (@Minnesota_DHS) June 17, 2026
The account also claims to have reported the matter to State Auditor Julie Blaha and called for an independent investigation the matter.
Current State Auditor Julie Blaha: You asked us to report concerns to you. Now, you have received our emails.
The public will be watching closely how you respond to the problems regarding Hennepin County's Youth Stabilization Center with multiple concerns about children's safety… https://t.co/Lxj9V7POis
— Minnesota Staff Fraud Reporting Commentary (@Minnesota_DHS) June 16, 2026
Alpha News asked Blaha whether her office is investigating claims surrounding the Youth Stabilization Center.
A spokesperson for the Office of the State Auditor declined to say whether an investigation is underway, citing Minnesota law governing investigative data.
“Under Minn. Stat. § 6.715, all data related to a matter are not public until either a final report is released or the matter is no longer being actively pursued,” the office said in a statement. “For this reason, we cannot share information regarding this matter at this time.”
The statement leaves open the possibility that the auditor’s office is reviewing the matter, although officials would not confirm that to Alpha News.
Jenna Gloeb
Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.
