Nevada cuts psychiatric residential placements for children from 35% to 16%

Residential placement is used for children who are unsafe at home due to emotional, behavioral, and psychiatric issues.

Alternatives to psychiatric residential placement include Partial Hospitalization Programs (PHP), Intensive Outpatient Programs (IOP), and outpatient care, which allow for varying levels of support while enabling the child to remain at home. These alternatives can provide structured treatment without the need for full residential care.

https://www.beckersbehavioralhealth.com/care-coordination/nevada-cuts-psychiatric-residential-placements-for-children-from-35-to-16/

Nevada cuts psychiatric residential placements for children from 35% to 16%

Ella Ruder    |    August 14, 2026

Nevada reduced the percentage of children with behavioral health disabilities placed in psychiatric residential treatment facilities from 35% to 16% since January 2025, The Nevada Independent reported Aug. 13.

The decline comes as the state works to comply with a five-year settlement agreement with the Department of Justice, signed Jan. 2, 2025, after findings that Nevada violated the Americans with Disabilities Act. The state has also invested more than $100 million in children’s behavioral healthcare through Nevada Medicaid.

Here are five things to know:

1. Among youth covered by Nevada Medicaid who are tied to the settlement agreement, 404 youth out of a population of 1,147 were placed in psychiatric residential treatment facilities at 35%, compared with 382 youth out of a population of 2,408 at 16%.

2. In fiscal year 2020, more than 1,700 Nevada children were admitted to psychiatric hospitals and more than 480 children were admitted to psychiatric residential treatment facilities. Children remained in those facilities for an average of nine to 12 months, with about 27% staying more than a year.

3. Nevada is launching a short-term therapeutic home model intended to provide an intermediate, community-based residential treatment option. The goal is for stays to last between one and three months.

4. The state has invested more than $100 million in children’s behavioral healthcare through Nevada Medicaid. The funding will help raise reimbursement rates for rural and in-home therapy services, specialized foster care services and residential psychiatric treatment for children with complex needs.

5. Ann Jensen, administrator of Nevada Medicaid, said a day at a psychiatric residential treatment facility costs the state between $800 to $950 per child. Ms. Jensen said inpatient care for children is more expensive than offering community-based outpatient services.