I think that kids need to own up to what they have done, and sometimes it is when they end up in a place they don't want to be that they awaken. In some cases they need to be on the right medication to have a fully successful awakening and to start walking the walk they need in order to begin their life again. The structure in residential will certainly help, but might not be the total key to solving the puzzle.
Does he have a diagnoses of any sort, or has he had evaluations done? Is he on any medications right now?
