Congress approved Medical Assistance for Intermediate Care Facilities in 1971 and the Fergus Falls State Hospital was the first in the state to be certified to receive federal funds.
Within four years, all state hospitals were certified and Minnesota became the first state to use Medicaid to fund community group homes.
Group homes were opening around the state to allow parents and guardians to choose care that was close to home.
Another state-run facility, the Gillette Hospital, had served children with physical disabilities under the aegis of the Department of Public Welfare for decades. In 1973, it was transferred to a new, quasi-public authority. It continues to be one of Minnesota's premier rehabilitation hospitals.
In 1973, Gillette Hospital no longer operated as part of the state's Department of Public Welfare.
Care standards for people with developmental disabilities reached a critical juncture on August 30, 1972. On that day, Richard Welsch filed a complaint with federal courts criticizing the physical condition, care, treatment and training residents received at Minnesota's regional treatment centers.
Welsch, whose daughter had lived at Cambridge State Hospital since she was seven years old, alleged that conditions at the facility and the treatment provided did not meet constitutional standards of due process. Attorney Neil Mickenberg led the class action suit.
Video: Eleanor Welsch, mother of Patty Welsch,whose parents filed the landmark federal suit over lack of are at Cambridge State Hospital.
Part 1: The Beginning of the Welsch Case from a Mother’s Viewpoint
A lawsuit filed by Richard Welsch criticized resident care at Minnesota institutions.