• DHS can confirm the existence of an ongoing investigation regarding NUWAY Alliance, an SUD treatment provider that offers residential and outpatient treatment options in five regions throughout Minnesota.
• As noted in a Feb. 15 court filing from the Attorney General’s Office on behalf of DHS, the department issued a notice of payment withhold to NUWAY on Feb. 29, 2024, for the provider’s outpatient programs based on a credible allegation of fraud.
• A payment withhold alone does not prohibit a provider from holding a SUD treatment license or otherwise operating the program.
• DHS extended the deadline several times to allow additional time for NUWAY to plan for the implementation of the payment withhold, including a plan for recipients to transition to new providers and avoid service disruption should NUWAY cease operations.
• Recently, NUWAY requested that a federal judge issue a temporary restraining order to prevent the implementation of the payment withhold, which was set to go into effect on Feb. 21, 2025. The judge denied their request.

Here are the latest updates about the status of NUWAY operations and the steps DHS is taking to provide for continuity of services for NUWAY clients:

• DHS acknowledges media reports that state NUWAY is laying off 174 of its Intensive Outpatient Treatment staff at the end of April.
• DHS was informed of a planned change in operations of NUWAY’s four non-residential sites in greater Minnesota: Waite Park, Duluth, Rochester, and Mankato. DHS is working with NUWAY and an existing, licensed SUD treatment provider, Partners Behavioral Healthcare (PBH), to facilitate a change in ownership and operation of these four sites in greater Minnesota. As a result, NUWAY closed its licenses for these sites on March 8, 2025, and PBH assumed operations on March 10, 2025. DHS Licensing worked with both providers on approving variances to provide a seamless transfer of staff and clients from NUWAY to PBH that does not jeopardize health and safety of clients.
• NUWAY is communicating with DHS Licensing as it determines next steps with its remaining Intensive Outpatient Treatment programs.
• DHS continues to communicate with the counties where NUWAY’s Intensive Outpatient Treatment programs are located, which it started doing in early 2024, informing them about a possible action that could affect the housing and SUD treatment services of people in their region. DHS and counties have been working closely to gather resources and prepare for care coordination.
• On Feb. 25, DHS also met with the Metro Urban Indian Directors (MUID) group to brief them on the situation and solicit possible resources.
• DHS has also engaged with the Minnesota Department of Corrections about the potential impact on DOC clients who had been receiving services through NUWAY.

DHS has also been developing materials to help clients who may experience a service disruption. DHS has:

• developed a webpage that shares a variety of resources across the state should someone experience a disruption to their SUD treatment or housing. A print version is also available.
• developed a webpage with resources specific to American Indian communities. A print version is also available.
• created an email box – dhs.sud.housing@state.mn.us – for affected clients to share their information with DHS so staff can refer them to counties, Tribes or other organizations that can connect them to resources in their area. In the email, clients should include their name, what services they need, and the county or Tribe where they’d like to receive services.

DHS knows that time is of the essence in this situation, and we are working urgently to help our partners make needed service connections for people in need.

DHS is committed to supporting a statewide system that meets the critical housing and treatment needs of people with substance use disorders, while maintaining the integrity of Minnesota’s Medicaid program. DHS is deeply grateful for the hard work and dedication of providers in both the SUD treatment and the housing stability communities. Your partnership will be key in navigating this situation successfully for those affected.

DHS will continue to provide updates to this situation as we are able.