A major milestone was achieved when the last child left the state hospital system in 1987.
There were 292 children living in state hospitals in 1982. The number was reduced to 66 in 1983. Finally, in January 1987, the magic number "zero" was attained. The first priority of plaintiff attorneys in the Welsch case was to ensure that children were the first to move out of the state institutions.
Video: Anne Henry of the Minnesota Disability Law Center worked with Luther Granquist on the Welsch case.
Part 1: Restraint and Seclusion at State Hospitals

The last child left in 1987.
Meanwhile, in the courts, plaintiff counsel assigned to the Welsch case believed further litigation was a certainty. The case was transferred to Judge David Doty and round-the-clock discussions began in March 1987.
The result – a negotiated settlement that would:
- Maintain staff ratios;
- Improve therapy and planning;
- Enable those with the most significant disabilities to leave the institutions;
- Create an Ombudsman office to investigate complaints.
On August 25, 1989, seventeen years after it was initially filed, the Welsch class action lawsuit was dismissed after prompting massive changes in the care of Minnesota's residents with developmental disabilities.

Seventeen years after being filed, the Welsch class action suit was finally settled, prompting massive changes in the care of people with developmental disabilities.
However, a great deal of work remained.
In 1988, Governor Perpich and Department of Health Services Commissioner Sandra Gardebring created a negotiating process to reach consensus about the future of state hospitals. Representatives of all concerned parties met for months.
In September, a proposal was presented that stated all persons with developmental disabilities can be served in the community; all Regional Treatment Center units should be phased out by 1999; and that half of the residents would be served by state-operated services.
In 1989, the Minnesota Department of Corrections began to takeover the Faribault facility.

Governor Perpich pushed for consensus about the future of the state hospital system.