Special education money flows to for-profit residential treatment centers, despite scrutiny

Many for-profit residential facilities in the so-called troubled teen industry nationwide that claim to treat severe mental and behavioral health issues in children and teens are deftly tapping into taxpayer money meant for students with disabilities.

An Associated Press investigation finds that even amid increasing scrutiny, this money continues to flow given the fractured bureaucracy of the special education system.

The playbook to profits include operating on stand-alone contracts with individual school districts and drawing out-of-state kids.

Both strategies dilute regulatory oversight.

Residential centers also capitalize on a catch-all disability category and rely on a shadow network of educational consultants who help generate business.