My daughter's calls were supervised and were only 30 minutes a week and, most of the time, were much less than that because of her attitude. It was like that until she got to her third level. Only took her a year to do that. I would get her complaints via letters and when I saw her on my monthly visits. Honestly, supervised phone calls are pretty common.
If you can, try to help Matt understand that the kids are treating him badly because they're afraid of him. It is up to him to show he is at least a little more stable. Give them time and they will forgive. There was a girl at my daughter's Residential Treatment Center (RTC) who broke one girl's arm and a staff member's nose in a rage. She also broke a window in the dead of a New England snow storm, punched holes in the walls, the whole 9 yards. She was hospitalized and allowed to return. The girls really were afraid of her but it did give her a very valuable lesson that her rages did affect others even if she had no control over them (she had some before the rage started but she refused to use her tools to help deal with her anger). I think that in the long run her having to earn back everyone's trust and truly seeing for the first time that her behavior affected others and that the rest of the world was not as forgiving as parents helped her. She did learn to walk away until she was under control no matter how provoked she was and there was no question that some of the girls went out of their way to try to provoke her -- they wanted her gone. Hopefully, Matt will learn this skill while he is there. It may be the greatest tool he takes away from any place he is in.
Hon, they haven't said they're giving up on Matt. Actually, it seems like they're saying the exact opposite. Even though they have some real fears, they're working with him and trying to help him. Hopefully, the docs will find the right medication mix to help him.
There was a time or two that I was extremely dissatisfied at what was going on with my daughter. One was when her therapist wasn't returning my calls. I called the director of the school and seriously vented. Amazingly, the therapist called me the next day. So, if you can't get the answers you need, don't hesitate to skip a few steps and go right to the top. Many of these places really aren't used to parents who are actively involved.
Sorry, I keep doing these long posts to you, but it is just that I do understand some of your pain and frustration and I'm hoping I'm helping a little. HUGS