The Senate will introduce a bill sponsored by Sen. Ron Wyden to strengthen federal oversight of residential treatment centers after a Senate probe found evidence some operators put profits ahead of child safety. The proposal would require HHS to publish a national dashboard tracking restraints, seclusion, accreditation, staffing and inspection outcomes, tighten state investigation timelines, and close an accreditation-to-licensing loophole used in 21 states. It also includes higher hiring standards and student loan assistance for Medicaid-funded facility staff, while directing GAO and the HHS inspector general to investigate marketing and out‑of‑state placements.
Senate Bill Would Require HHS Dashboard, Tighten Oversight After Abuse Allegations At Youth Treatment Centers
Sen. Ron Wyden, D-Ore., and his staff led a two-year investigation into residential treatment facilities. (Heather Diehl / Getty Images)
New federal legislation introduced by Sen. Ron Wyden (D-Ore.) would expand oversight of residential treatment centers that care for foster children and youth with behavioral or mental health needs after a Senate investigation found evidence that some operators prioritized profits over safety.
What the Bill Would Do
The proposal would direct the Department of Health and Human Services (HHS) to create a national, publicly accessible dashboard with standardized data on residential treatment facilities. The dashboard would report metrics including rates of restraints and seclusion, accreditation and state licensure status, staffing levels and credentials, facility charges, and the results of recent inspections.
Under the bill, states would be required to investigate significant complaints within two days. If a complaint is substantiated, states must complete broader examinations of the implicated facility and any sister facilities that share ownership within 30 days.
Karlena Hamblin, who had been placed at a youth residential treatment facility, reacts to remarks by Sen. Ron Wyden at a news conference in Washington in June 2024. (Nathan Howard / Getty Images)
The measure would also close a licensing loophole used in 21 states that lets some facilities bypass parts of state licensing if they hold private accreditation (for example, from The Joint Commission or CARF). It would raise hiring standards, create a student loan assistance program for staff at Medicaid-funded facilities, and incentivize better credentials for caregivers.
Federal Reviews and Accountability
The bill directs the Government Accountability Office (GAO) to study corporate marketing practices for these facilities and orders the HHS Office of Inspector General to investigate how often states place children across state lines. If enacted, the legislation would increase federal scrutiny of the so-called troubled-teen and private residential treatment industries.
Sen. Ron Wyden: “Young Americans who are struggling with their mental health or who are in foster care deserve far better than what they’re getting right now. This bill will give watchdogs the tools to spot and stop abuse quickly.”
Evidence and Concerns
Last year, the Senate Finance Committee published a 130-page report drawing on internal documents and state inspection records. The report described instances in which staff allegedly administered sedative drugs to children, dragged or threw minors, and engaged in sexual misconduct. NBC News investigations also found that some for-profit operators continued to secure government or school contracts despite past inspection findings and lawsuits.
Sen. Ron Wyden speaks alongside youth residential treatment activists and abuse survivors at a news conference at the U.S. Capitol in June 2024. (Nathan Howard / Getty Images)
Sarah Font, Washington University: “I worry that if oversight is overly punitive without investment in quality providers, we risk losing clinicians willing to do this difficult work. Residential care can be beneficial when it is done well.”
Child-welfare advocates say the bill is a constructive step to close gaps in the patchwork of state regulations, though they emphasize it is not a complete solution to deeper problems in the system.
Next steps: The bill was set to be introduced on Thursday. If passed, it would prompt new federal reporting and investigations and could change how states license and monitor residential treatment facilities.
This article was originally reported by NBC News and has been edited for clarity and structure.
