Michigan spent more than $13 million on out-of-state placements for youth mental health treatment in fiscal 2025, compared to $9.7 million the previous year, according to a Michigan Department of Health and Human Services report.
As of September, 152 youths in Michigan’s direct placement program were living in out-of-state facilities, including sites in Nevada, Arizona, Texas and Hawaii. Kent County accounted for the largest number of out-of-state placements, with 67 youths placed out of state, followed by Berrien County with 25 and Ingham County with 10.
The state’s child caring institution bed count has fallen more than 60% since the pandemic, dropping from 1,200 beds to fewer than 400 beds, CBS affiliate WSBT reported May 12. Fourteen facilities also had their licenses revoked by the department, including several for abuse or neglect.
State Rep. John Roth, R-Interlochen, said staffing shortages and state regulations tied to restraint and seclusion policies have contributed to facility closures and reduced bed capacity. The policies were implemented after 16-year-old Cornelius Fredericks died during a restraint incident at Kalamazoo Lakeside Academy in 2020.
Michigan officials said the state has increased investments in behavioral healthcare infrastructure. Grand Rapids-based Pine Rest Christian Mental Health Services recently opened a pediatric health center backed by $50 million state investment that added 66 inpatient beds for children and adolescents. Gov. Gretchen Whitmer’s fiscal 2027 budget also includes $8.3 million for additional psychiatric residential treatment facilities expected to add 50 transitional beds statewide.
A $383 million state-funded psychiatric hospital under construction in Northville Township is expected to open this fall and will include 72 beds for youths.
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