5 EYEWITNESS NEWS is pressing for answers after an organization given millions of dollars is now being investigated.
For weeks now, 5 EYEWITNESS NEWS has been reporting about issues at Nexus Family Healing in East Bethel.
Matt Look, the East Bethel city administrator, spoke with us in May.
“We’re very sympathetic about the situation,” he said. “We’re concerned about the programming that’s gone on there, and the kids and the families affected by this temporary suspension of their license.”
Look noted the youth psychiatric facility had been the source of 178 emergency 911 calls in 2025 alone, and that those calls had started about three years ago.
“There were a lot of calls of self-hurting,” he explained. “ Calls of assaults. Calls of kids leaving the facility.”
The Department of Human Services has been investigating a list of violations, including unreported suspected maltreatment, medications not being administered safely, and treatment services being done without supervision.
DHS says it suspended Nexus’s East Bethel license as of May 15, but late Friday, Nexus Family Healing issued a statement, saying it “has reached an agreement with DHS, and the suspension has been lifted.”
5 EYEWITNESS NEWS is working to see if DHS will confirm that has happened. Earlier, the provider said it was in active discussions with DHS, “with the goal of continuing to serve the youth in East Bethel.”
Hennepin County’s history with Nexus
These new developments come nearly two years after Hennepin County commissioners gave Nexus glowing reviews — and awarded them a contract.
“Nexus is well renowned in the health field, running a lot of great conceptual ideas about residential treatment,” Commissioner Heather Edelson said during an Oct. 29, 2024, meeting.
At that meeting, the commissioners approved a three-year, $21 million contract to Nexus, to run the county’s Youth Stabilization Center in Minneapolis.
RELATED: Youth treatment program in East Bethel under state investigation
A Hennepin County spokesperson says that payout is intended to be temporary, until the state has Medicaid funding in place.
At the time, the need was described as urgent.
“What I can tell you, on any given day, we are seeing a handful, ten to eleven kids that anytime are boarding in local hospitals, they are sitting in emergency departments, they are not getting the care they need,” explained Leah Kaiser, the Director of Behavioral Health for Hennepin County.
David Hough, the County Administrator at the time, didn’t mince words about the cost before the vote.
“Nexus is the vendor we’re recommending to be awarded this contract,” he said. “When you do the math here, $7 million is a lot. But in the reality of things, it costs about $2,000 a day minimum per child in a program like this — the sophistication, and the needed staff and the treatment.”
Records and statements
DHS licensing records show three violations by Nexus at East Bethel, before the Hennepin County contract was approved, including two correction orders and a maltreatment investigation memo.
5 EYEWITNESS NEWS emailed the county, asking if officials were aware of those violations, and if there’s a vetting process.
A spokesperson released a statement explaining that the license at the Minneapolis facility is active and that Nexus was selected following a “structured, competitive process.” The statement said in part:
“We’d reiterate that the state has taken no licensing actions with respect to the Youth Stabilization Center. While Hennepin County does not perform licensing functions or investigations, we work closely with providers regarding their performance, including reviewing and responding to complaints and other issues with respect to contracted services. County staff and leadership follow-up directly with providers on any action steps that might need to be taken. Nexus also operates the Youth Stabilization Center within a Hennepin County-owned building at 1800 Chicago Avenue, which helps allow for significant coordination and communication between Nexus and county leadership and staff.”
“Obviously, vetting is extremely important for any agency with regard to any contract,” notes Phil Krinkle, with the Taxpayers League of Minnesota. “This situation would be no different than any other to thoroughly investigate who the entity is, and if there are any malfeasance or any issues that have occurred in the past.”
Nexus Family Healing also shared the following statement about its Hennepin County service:
“We can confirm that our management and operations costs for the Hennepin Youth Stabilization Center are consistent with those at high-level care facilities, serving youth with complex mental and behavioral health needs. Our contract costs were negotiated and finalized in partnership with the County. We are honored to be building this program with Hennepin County to meet the increasing demand for these services.”
For Related Stories: Department of Human Services DHS East Bethel Minnesota Department of Human Services Richard Reeve Youth