Caring for our children’s psychological needs has to be a top priority. That’s why we were relieved to learn that residential treatment centers in Colorado won’t be forced to close in January because of a government mishap. Forty-two centers were scheduled for shutdown after federal officials said the state had been billing Medicaid improperly for more than a decade.
The Centers for Medicare and Medicaid Services granted a six-month extension so Colorado can find other types of Medicaid-approved care for the 1,500-plus emotionally disturbed and mentally ill children and teen-agers cared for at the centers. We applaud all those who worked to get an extension. Now, state officials must work diligently to resolve the funding.
Federal officials had warned Colorado in the past about improper billing, and in August Washington threatened to withdraw funding. For example, centers that pair teens and horses had billed for animal therapy, which Medicaid doesn’t accept. Some centers don’t have doctors on site and so are not considered Medicaid eligible.
It all added up, and Gov. Bill Owens requested an extension.
“We now have the ability to work with the legislature and the treatment providers to develop a seamless transition to an alternative system before July of next year,” Owens said. The centers house children who stay from a few days to more than a year and receive counseling and other therapies.
Psychological Residential Treatment Facilities are one of the Medicaid-eligible alternatives state officials have in mind. Colorado law doesn’t currently recognize such facilities, which are nationally accredited, so the legislature will have to change the law in the coming session. The state’s residential treatment centers also will have to meet a higher standard of care to win national accreditation. Many already do. But state officials have acknowledged that it’s possible some of the centers might have to be downsized or closed. We hope it doesn’t come to that. Other centers likely will need additional money to hire psychiatrists and nurses and meet federal guidelines.
For now, the state has time to plan its next move, and children and teens can continue receiving care. The federal folks deserve recognition for their flexibility.



