One of Minnesota’s largest peer recovery service providers shut down this fall amid fraud allegations, leaving roughly 1,000 clients — and hundreds of staff — in the lurch.
State officials and providers across Minnesota are racing to fill the gaps left by the abrupt closure of Minneapolis-based Kyros. The for-profit technology company had a staff of hundreds of peer recovery specialists who lived through addiction and provided services, including one-on-one mentoring and helping people access resources — ranging from housing to employment.
“I am really worried about the people who are going to fall through the cracks here,” said Philip Rutherford, who helped start peer recovery in the state a decade ago and works at the National Council for Mental Wellbeing.
Kyros also offered telehealth services and virtual substance use assessments — a first step in getting someone Medicaid-covered treatment. Many other recovery organizations relied on the company’s digital platform to run their businesses.
The state Department of Human Services (DHS) inspector general said this year that the department was investigating Kyros and an affiliated nonprofit, Refocus Recovery. Kyros clients said their insurance was billed for services they did not receive, and a KARE 11 series put a spotlight on questionable practices at the company.
Refocus Recovery submitted claims for 1,418 clients for July and August, the DHS said.
The department halted payments to the nonprofit. Refocus Recovery has suspended work and “our whole mission set is up in the air right now,” said Matt McLane, the nonprofit’s managing and interim executive director.
He said the nonprofit has canceled its service agreement with Kyros and has been an “open book.” He said Refocus Recovery has long cooperated with the state but that DHS did not work with the service to ensure an orderly outcome.
According to a voicemail at Kyros’ office, the company closed its Minneapolis headquarters Sept. 19. Its website also lists a program in Ohio.
“This decision did not come without concern for our assessors, peers and the clients we serve. The impact to lives with this decision breaks our heart,” the automated message says.
DHS has created a list of support resources to help former Kyros and Refocus Recovery clients, and is talking with the organizations’ lawyers about how to help clients transition to new providers, a department spokesman said. DHS is also making a long-term plan for supporting people affected by the sudden closure.
(Source: Star Tribune)
