Nevada health officials have resumed inspections at facilities owned by Moriah Behavioral Health and its subsidiaries, Ignite Teen Treatment LLC and Eden Treatment LLC. The inspections follow a ruling by District Judge Jennifer Schwartz on November 20, 2023, which dissolved a temporary restraining order that had prevented state agencies from conducting what the clinics describe as unlawful and excessively broad searches.
The renewed inspections, according to attorney Mark Hutchings, who represents the clinics, stem from a 48-page complaint filed on November 3, 2023. Hutchings alleges that the state’s inquiries have led to retaliatory sanctions, disrupting patient intakes and jeopardizing the clinics’ ability to maintain licenses and secure Medicaid funding.
Hutchings expressed deep disappointment with the court’s ruling, stating, “There has been significant financial harm and business harm to my client because of the state’s actions already.” The lawsuit names several defendants, including the Nevada Health Authority, its director Stacie Weeks, and the Nevada Department of Human Services, led by director Richard Whitley.
Claims of Intimidation and Misconduct
According to the complaint, from late 2022 to mid-2023, state investigators visited Moriah facilities “unannounced” and in an intimidating manner. The complaint alleges that state workers failed to provide reasons for their visits and demanded access to facilities, staff, and medical records.
Hutchings contended during the court hearing that these actions violate the Fourth Amendment of the U.S. Constitution, which guards against unreasonable searches and seizures. However, a representative from the office of Nevada Attorney General Aaron Ford argued that the state’s actions were necessary to enforce regulations that protect vulnerable populations, particularly regarding allegations of abuse and neglect against Moriah’s facilities.
Deputy Attorney General Abigail Pace emphasized that licensed facilities are subject to rigorous scrutiny to ensure compliance with state regulations. She noted a previous settlement involving Moriah concerning licensing issues and reiterated that inspectors are tasked with ensuring the health and safety of patients.
State Officials Respond to Litigation
In an email, Weeks conveyed that while she could not comment on ongoing litigation, her agency was “pleased” with the court’s decision. “Our main goal and priority is to ensure safe and quality care for children and youth served by these facilities that are licensed by the state of Nevada,” she stated.
The Nevada Department of Human Services declined to comment further, with spokesman Nathan Orme citing the ongoing legal proceedings. Hutchings, in contrast, expressed that to date, he has seen no documented complaints against his clients concerning care deficiencies.
He criticized the state’s approach, claiming that investigators demand broad access under what is known as a “general warrant,” allowing them to operate without providing specific justifications for their actions.
Governor Joe Lombardo restructured Nevada’s health system in July 2023, dividing the former Department of Health and Human Services into the Nevada Health Authority and the Department of Human Services. The lawsuit occasionally refers to these agencies using their former titles.
The ongoing disputes have significant implications for Moriah and its subsidiaries, which continue to operate while engaging with state authorities to resolve the matter. Hutchings warned that the state’s actions could threaten operations not just in Nevada but also in other states where Moriah operates.
“Part of this lawsuit is that we are suing the state for recovery of the destruction of the business,” Hutchings stated. He added that without a resolution, the ongoing regulatory actions could ultimately lead to the closure of Moriah’s facilities.
