A: CHN does pay for medically necessary services including residential treatment for children and adolescents who are members with a covered diagnosis and in need of this level of care. Philosophically, we support keeping the youth with his family through the use of intensive community based services, prior to the consideration of residential treatment. Residential treatment is typically used when less restrictive services have been demonstrated to be ineffective. An evaluation by the local CMHC and a multidisciplinary staffing with representation from the CHN Service Center is required when residential treatment is being considered.