Nexus Family Healing, a youth psychiatric care provider, is currently under investigation by the Minnesota Department of Human Services (DHS) following reports of safety violations at its East Bethel facility. The state agency suspended the organization’s license in May 2025, citing concerns over maltreatment, unsafe medication administration, and inadequate supervision, though the provider reports an agreement has been reached to lift the suspension.
Why is the East Bethel facility under scrutiny?
The investigation stems from a pattern of safety concerns and emergency responses at the East Bethel location. East Bethel City Administrator Matt Look reported that the facility generated 178 emergency 911 calls during 2025 alone. According to Look, these calls frequently involved reports of self-harm, physical assaults, and youth leaving the facility without authorization. DHS licensing records confirm that the provider received two correction orders and a maltreatment investigation memo prior to the recent license suspension.
How does the $21 million Hennepin County contract compare?
While the East Bethel site faced state-level investigations, Hennepin County commissioners approved a three-year, $21 million contract with Nexus in October 2024 to operate a Youth Stabilization Center in Minneapolis.
The two projects operate under different regulatory frameworks. Hennepin County officials stated that their contract was awarded through a "structured, competitive process" and noted that the state has taken no licensing actions against the Minneapolis facility. County Administrator David Hough justified the $7 million annual expenditure by citing the high cost of specialized care, which he estimated at a minimum of $2,000 per day per child.
Did you know?
Hennepin County leadership coordinates directly with Nexus on the Minneapolis facility because the program is housed in a county-owned building at 1800 Chicago Avenue.
What is the standard for vetting public contracts?
The discrepancy between the state’s active investigations in East Bethel and the county’s contract award has sparked a debate regarding government oversight. Phil Krinkle of the Taxpayers League of Minnesota emphasized that thorough vetting is essential for any agency handling public funds. He stated that officials must investigate the history of any entity receiving a government contract to identify past malfeasance or operational failures. Hennepin County maintains that it works closely with providers to respond to complaints and monitor service performance.
Frequently Asked Questions
Is the Nexus facility in East Bethel currently closed?
As of late May 2025, Nexus Family Healing announced that it reached an agreement with the DHS to lift the suspension of its license. 5 EYEWITNESS NEWS reports that it is seeking official confirmation from the state regarding the current status of that license.
What specific violations did the DHS document?
According to DHS licensing records, the violations include failure to report suspected maltreatment, unsafe medication administration, and the provision of treatment services without proper supervision.
How does the county justify the $21 million contract?
Hennepin County officials describe the contract as a necessary response to an urgent need, noting that local hospitals often struggle to house youth waiting for behavioral health services.
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