Nevada health officials have reinstated inspections at facilities operated by Moriah Behavioral Health and its subsidiaries, Ignite Teen Treatment LLC and Eden Treatment LLC. This decision follows a ruling by District Judge Jennifer Schwartz on November 20, 2023, which dissolved a temporary restraining order that had previously halted extensive state inquiries into the clinics. The inspections are part of the Nevada Department of Human Services and the Nevada Health Authority’s efforts to ensure compliance with regulations governing licensed medical facilities.
Attorney Mark Hutchings, representing Moriah and its affiliates, expressed deep disappointment in the judge’s ruling. He contends that the state’s actions have caused significant financial harm to the clinics, disrupting patient admissions and jeopardizing their ability to maintain licenses and receive Medicaid funding. Hutchings filed a comprehensive 48-page complaint on November 3, 2023, alleging that the state’s broad and aggressive demands have resulted in retaliatory sanctions against his clients.
The renewed inspections were communicated to the clinics on the same day as Schwartz’s ruling. Hutchings described the state’s tactics as “intimidating and demeaning,” claiming that investigators have routinely appeared without notice and demanded access to staff, patients, and records without providing clarity on their purpose.
Legal and Regulatory Context
During the hearing on November 20, Hutchings argued that these practices violate the Fourth Amendment of the U.S. Constitution, which protects individuals against unreasonable searches and seizures. In response, Abigail Pace, a deputy attorney general representing the state, stated that the inspections are necessary to enforce state regulations, particularly in light of complaints regarding allegations of abuse and neglect at Moriah’s facilities.
Pace emphasized the importance of rigorous oversight for licensed businesses, noting that Moriah had previously agreed to regulatory terms when it sought licensure in Nevada. “There is a comprehensive regulatory scheme that describes all of the duties of a provider,” she remarked, underscoring that inspections should be limited in scope to violations of statutes and the licensed premises.
State’s Position and Clinic Response
Following Schwartz’s ruling, Stacie Weeks, director of the Nevada Health Authority, expressed satisfaction with the decision, highlighting the agency’s commitment to ensuring safe and quality care for vulnerable children served by these facilities. The Nevada Department of Human Services’ spokesperson, Nathan Orme, declined to comment on the ongoing litigation.
Despite the state’s claims, Hutchings maintains that there have been no documented complaints against Moriah for care deficiencies. He voiced concerns regarding the state’s approach, suggesting that the investigatory practices infringe upon the rights of the clinics and their operations. “Their position is that they can just have plenary access to the facilities, to the staff, to the patients, to the medical records and the billing records,” Hutchings stated.
The administrative conflicts have broader implications for Moriah’s operations beyond Nevada, impacting its facilities in states like Illinois and Iowa. Hutchings warned that the continuing state actions could threaten Moriah’s viability, potentially leading to closures. “Part of this lawsuit is that we are suing the state for recovery of the destruction of the business,” he explained.
As the situation develops, the conflict between state oversight and the operational autonomy of mental health providers remains a critical issue for stakeholders in the healthcare sector. The outcome of this legal battle may set important precedents regarding the balance between regulation and the rights of healthcare providers.
