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February 27, 2026 Eric Vagle, Authorized Agent Minnesota Adult&Teen Challenge 740 E. 24th Street Minneapolis, MN 55404-3862 License Numbers: 1066304 and 1088843 (245G) Dear Eric Vagle: The Minnesota Department of Human Services (DHS), Division of Licensing, received your request for reconsideration regarding Violations 1 and 10 in the Correction Order issued to you on January 12, 2026. You did not challenge the remaining violations, and those violations are final and not within the scope of this review. Reconsideration Determination Violation 1: The license holder did not meet requirements for receiving public funding reimbursement from the commissioner for services provided. The license holder did not meet the applicable requirements under Minnesota Statutes, section 254B.0507, subdivision 6, for services provided to individuals with co-occurring mental health and substance use disorder problems. There was no documentation of the following: a. Diagnostic assessment completed within 10 days of admission (client files numbered 1 and 3); b. Monthly multidisciplinary case review for the following: i. July 20, 2025, to September 4, 2025 (client file numbered 2); ii. May 16, 2025, to August 4, 2025 (client file numbered 3); and iii. August 8, 2025, to September 22, 2025 (client file numbered 4); and c. Annual 8 hours of co-occurring disorder training for calendar years: i. 2023 (personnel file numbered 2); ii. 2024 (personnel files numbered 1, 2, 7, and 9); and iii. 2025 (personnel file numbered 2, 3, 6, 7 and 9). Applicable Law Under Minnesota Statutes, section 245A.167, an applicant or license holder that has enrolled to receive public funding reimbursement for services is required to comply with the registration or enrollment requirements as licensing standards. Compliance with the licensing standards established under paragraph (a) may be monitored during a licensing investigation or inspection, and noncompliance may result in actions listed in the statute. Under Minnesota Statutes, section 245A.191, when a licensed substance use disorder treatment provider agrees to meet the applicable requirements to be eligible for enhanced funding from the behavioral health fund, the related applicable requirements are also licensing requirements that may be monitored for compliance through licensing investigations and licensing inspections. Noncompliance may result in actions listed in the statute. Your Response You submitted a letter requesting reconsideration along with documents for client 1, multidisciplinary case notes, and explanations for documents that remain unavailable. Reconsideration Determination With regard to the diagnostic assessment for client 1, because the assessment was completed by a Licensed Graduate Social Worker, the documents also required a supervisor’s signature to be considered complete. The supervisor/Licensed Social Worker did not sign the diagnostic assessment until July 8, 2025, which was more than ten days after the date of admission. With regard to the monthly multidisciplinary case review, the documentation was not located in the client file during the licensing review. The licensor advised the program during the exit meeting that documentation could be sent electronically within 24 hours, but no documentation was received during that timeframe. There is sufficient information to support the violation, and it is affirmed. Violation 10: The license holder’s policy governing the plan for transfer of clients and records upon closure did not meet requirements (license numbers 1088843 and 1066304). The plan did not provide for notifying affected clients of the closure at least 25 days prior to closure. Applicable Law Under Minnesota Statutes, section 245A.04, subdivision 15a, paragraph (a), except for license holders who reside on the premises and childcare providers, an applicant for initial or continuing licensure or certification must submit a written plan indicating how the program will ensure the transfer of clients and records for both open and closed cases if the program closes. The plan must provide for managing private and confidential information concerning program clients. The plan must also provide for notifying affected clients of the closure at least 25 days prior to closure, including information on how to access their records. A controlling individual must annually review and sign the plan. Your Response You submitted a letter requesting reconsideration along with the Plan of Closure provided during the licensing visit, and you indicated you highlighted the section cited as missing to confirm that the required language was included and available at the time of the review. Reconsideration Determination Although you provided the facility’s Plan of Closure, the policy contains conflicting information. In Section 5.0, paragraph 2, clauses a and b, the policy specifies that all clients will be sent a letter to their last known address and called at least 25 days prior to closure. Clause c then refers specifically to clients that are currently enrolled in the program and indicates that those clients will be informed of the closure via a written letter. However, clause c does not specify the time period for when the currently enrolled residential clients will be notified and therefore does not meet the requirement of providing for notification to affected clients of the closure at least 25 days prior to the closure. There is sufficient information to support the violation, and it is affirmed. Disposition The Commissioner has reviewed the relevant laws and all the information you submitted in response to the Correction Order. The Commissioner finds there is sufficient evidence to support violations 1 and 10, and the violations are affirmed. This is a final agency decision.  Sincerely, Frances Simon Standing, Attorney Legal Counsel’s Office Office of Inspector General
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