Nevada Cuts Youth Institutional Placements by More Than Half, Launches New Community-Based Mental Health Model

NEVADA, August 4 - Carson City, Nev. — The Nevada Health Authority today announced major progress under its settlement agreement with the U.S. Department of Justice, reporting a dramatic drop in youth institutional placements and a shift toward community-based care. Building on this progress over the past two years, Nevada Medicaid is launching a new short-term Residential Rehabilitative Mental Health Care model, supporting youth and adults with serious behavioral health needs in home-like, community-based settings.

The model delivers intensive therapeutic support in a home-like environment, helping individuals stabilize while staying connected to their support networks. It builds on Nevada's settlement agreement with the U.S. Department of Justice, which calls for reducing reliance on long-term institutional psychiatric treatment and expanding community-based behavioral health services for children and youth.

"Every child deserves to grow up at home, surrounded by their family, attending their school, and connected to their community, rather than living in an institution because the system failed them,” said Governor Joe Lombardo. “Over the past two years, my administration has reduced institutional placements by more than half as part of our commitment under the DOJ Agreement to deliver meaningful, community-based mental health care for Nevada's children. This is more than a talking point. More kids are getting the care they need at home - where they belong. It is a promise made and a promise kept, and we are just getting started."

Data reported by the Nevada Health Authority to the U.S. Department of Justice shows the rate of youth under the Settlement Agreement who were placed in psychiatric residential treatment facilities dropped from 35% to 16% since the agreement was signed. More children are also receiving care at home or in their communities, averaging 11.6 visits per child, per quarter, over the past year.

This progress reflects more than $100 million in new state investments in children's behavioral health care through Nevada Medicaid — including new coverage for family and youth peer supports, and reimbursement increases or rural and in-home therapy services, psychiatric care, specialized foster care services, and residential psychiatric treatment for children with complex needs. The state is also working with federal partners to add Medicaid coverage for respite care, wraparound coordination services, and first-episode psychosis treatment."

The recent progress Nevada has made in children’s behavioral health care is a testament to what happens when families, providers, counties, and community partners refuse to accept the status quo. Together, we have moved the needle — but there is still work to be done to ensure all children have access to these services when they need them,” said Ann Jensen, Nevada Medicaid Administrator. "As we work to grow our provider network, we encourage providers to help expand access to children’s behavioral services including this new step-down, short term residential model."

Providers who are interested in learning more about the residential home-like model can reach out BehavioralHealth@nvha.nv.gov. Families, community members, and providers who are interested in providing feedback on children’s behavioral health transformation work can learn and join ongoing Working Group meetings here.

Children's behavioral health remains a top priority for Nevada Medicaid under Governor Lombardo's leadership, as the state continues expanding community-based care and safe transitions home.

About Nevada Medicaid

Nevada Medicaid, a division of the Nevada Health Authority, provides health coverage to eligible low-income individuals and families statewide, partnering with providers, managed care organizations, and community agencies to ensure access to reliable, high-quality care.