Minnesota Medicaid Terminated Two Therapy Centers
The state has terminated Medicaid contracts for Milestone Development Center and Spectrum Therapy Center amid ongoing investigations.
Updated on Sept. 21, 2026 in Child Care
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The Minnesota Department of Human Services has officially terminated Milestone Development Center and Spectrum Therapy Center from the Medicaid program. Both agencies are currently appealing the termination decisions while state fraud investigations remain open.
Why it matters
These terminations directly impact family access to therapeutic services and highlight the state's rigorous credential verification efforts. The actions follow the Minnesota Revalidate 2026 process, which ensures healthcare providers meet all necessary state and federal standards.
The Minnesota Department of Human Services removed the two centers as part of the Minnesota Revalidate 2026 process. This verification program ensures agencies maintain required credentials and regulatory compliance.
The players
Minnesota Department of Human Services
The state agency responsible for overseeing public healthcare programs and ensuring provider compliance with Medicaid regulations.
Nimco Ahmed
The CEO of Milestone Development Center who has publicly denied allegations of insufficient professional oversight at the facility.
Peggy Flanagan
The Minnesota lieutenant governor serving since 2019 and a current Democratic candidate for the U.S. Senate.
Grant Morgan
A former therapist who worked with clients at Milestone Development Center for two months in late 2023.
The details
The termination process occurred as part of the Minnesota Revalidate 2026 program, a regulatory review designed to verify agency credentials. Through this system, the state confirms that providers are in full compliance with all federal and state mandates. While Nimco Ahmed, CEO of Milestone, has denied allegations of missing oversight, the centers remain under active state fraud investigation.
Timeline
2019: Peggy Flanagan began her tenure as Minnesota lieutenant governor.
Late 2023: Grant Morgan was employed as a therapist at Milestone Development Center for two months.
2026: The state conducted the Minnesota Revalidate 2026 credentialing process.
The Home Front
This state-level enforcement follows a trend of stricter oversight for healthcare providers receiving public funding. It highlights the role of the Minnesota Revalidate 2026 process in maintaining regulatory standards for essential family services.
Families currently receiving services at these centers should contact the Minnesota Department of Human Services to verify coverage status or identify transition options for ongoing therapy. Regularly review your child's provider status on the official state portal to ensure continued eligibility.
The takeaway
The termination of these centers emphasizes the importance of verifying that your chosen therapy provider maintains valid state credentials. Families should proactively confirm their provider's status with the Minnesota Department of Human Services to prevent sudden gaps in care.
Further reading
Families seeking alternative care options can review state-approved providers through Child Care.
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