Nevada cuts institutional placements of children with behavioral health needs

Nevada announced a substantial fall in the proportion of Medicaid-eligible youth with serious behavioral health disabilities who are placed in psychiatric residential treatment facilities, dropping from 35% to 16% according to state health data. The change comes after a Department of Justice settlement that found the state was unnecessarily segregating these children in out-of-state institutions. Ann Jensen, the state's Medicaid administrator, described the outcome as a "big win" while stressing that further improvements are needed.

Over $100 million has been allocated to boost reimbursement for rural and in-home services, specialized foster care and complex residential treatment. The state also introduced a short-term therapeutic home model, offering one-to-three-month stays in a homelike setting staffed by behavioral health professionals. This intermediate option is intended to bridge the gap between outpatient care and highly restrictive facilities, without replacing the latter entirely. Officials say the settlement runs for five years but could end early if compliance is achieved.