Minnesota Terminated Two Medicaid Care Centers
The state department removed two agencies from the Medicaid program amid ongoing fraud investigations.
Updated on Sept. 21, 2026 in Child Care
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The Minnesota Department of Human Services has terminated Milestone Development Center and Spectrum Therapy Center from the Medicaid program. Both agencies are currently facing fraud investigations initiated by the state.
Why it matters
The terminations stem from the Minnesota Revalidate 2026 process, which ensures that state-funded service providers maintain the necessary professional credentials and regulatory compliance.
The Minnesota Department of Human Services conducted these actions through the Minnesota Revalidate 2026 process. This protocol requires providers to verify credentials and adherence to both state and federal regulations.
The players
Minnesota Department of Human Services
This state agency oversees public assistance, health care programs, and child care licensing across Minnesota.
Nimco Ahmed
She serves as the CEO of the Milestone Development Center.
Peggy Flanagan
She is the lieutenant governor of Minnesota who is currently running as a Democratic candidate for the U.S. Senate.
Grant Morgan
He is a former employee who worked as a therapist at the Milestone Development Center.
The details
Grant Morgan, a former therapist who worked at Milestone for two months in late 2023, reported providing care six days a week. While Milestone CEO Nimco Ahmed has denied allegations regarding a lack of professional oversight, both centers have filed appeals against their program terminations.
Timeline
Peggy Flanagan began serving as lieutenant governor in 2019.
Grant Morgan worked at Milestone Development Center for two months in late 2023.
The Minnesota Revalidate 2026 process was conducted in 2026.
Culture Shift
These terminations reflect a broader tightening of oversight within the state-funded care sector as agencies prioritize regulatory compliance. This effort aligns with the implementation of the Minnesota Revalidate 2026 process, which serves as a standardized filter for service provider eligibility.
Families relying on these centers for care services may need to seek alternative providers while the legal appeals proceed. The state's ongoing investigation may result in additional operational changes for service agencies operating within the region.
The takeaway
The integrity of state-funded programs relies on strict adherence to credentialing and regulatory standards. Families are encouraged to verify the current status of their service providers to ensure consistent access to care.
Further reading
For more information on state oversight, visit the Minnesota Child Care section.
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