Minnesota Terminated Two Therapy Centers From Medicaid
The state removed Milestone Development Center and Spectrum Therapy Center from the Medicaid program amid fraud 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 its Medicaid program. These agencies are currently under state investigation for potential fraud.
Why it matters
The termination changes how families in Minnesota access therapy services through Medicaid, as both providers have appealed the state decision. These actions are part of the state's ongoing oversight to ensure agencies meet regulatory and credentialing standards.
The Minnesota Department of Human Services terminated these two entities as part of its Revalidate 2026 process. This state verification effort requires agencies to prove they hold the necessary credentials and maintain full compliance with both state and federal healthcare regulations.
The players
Minnesota Department of Human Services
The state agency responsible for overseeing public health programs and ensuring providers comply with Medicaid regulations.
Nimco Ahmed
The CEO of Milestone Development Center who has denied allegations of missing professional oversight.
Peggy Flanagan
The lieutenant governor of Minnesota and a Democratic candidate for the U.S. Senate.
Grant Morgan
A former therapist who worked at Milestone Development Center for two months in late 2023.
The details
The state's revalidation process is a regulatory mechanism designed to screen agencies for legitimacy and required professional oversight. Following the termination of Milestone Development Center and Spectrum Therapy Center, the state initiated fraud investigations to review the entities' business and clinical practices. Both centers have officially challenged the state's termination, keeping the legal status of these providers in flux.
Timeline
Peggy Flanagan has served as Minnesota lieutenant governor since 2019.
Grant Morgan worked as a therapist at Milestone for two months in late 2023.
The Minnesota Revalidate 2026 process occurred in 2026.
Health Landscape
This enforcement action sits within the broader scope of the Minnesota Revalidate 2026 process, which aims to tighten oversight of state-funded therapy services. It follows a pattern of increasing scrutiny toward pediatric and development therapy agencies across the state.
Families currently using these facilities for therapy services should consult with their primary care physician to discuss alternative providers while these legal appeals are processed. If you are concerned about billing or service access, contact your state Medicaid representative to verify your current coverage options.
The takeaway
Ongoing state investigations into agency billing and oversight highlight the importance of regularly reviewing the status of your healthcare providers. If you notice inconsistencies in the therapy services provided to your family, speak with your doctor about identifying accredited alternative options.
Further reading
For more on finding reliable care, visit the Minnesota Child Care section.
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