Nevada Health Officials Resume Inspections Despite Legal Disputes

Nevada health officials have initiated inspections at facilities operated by Moriah Behavioral Health and its subsidiaries, Ignite Teen Treatment LLC and Eden Treatment LLC, following a recent court ruling. District Judge Jennifer Schwartz dissolved a temporary restraining order on November 20, 2023, allowing the Nevada Department of Human Services and the Nevada Health Authority to proceed with their inspections. The clinics’ attorney, Mark Hutchings, contends that the inspections are both unlawful and overly broad, asserting that they threaten the viability of these mental health services.

The inspections resumed after Hutchings filed a detailed complaint on November 3, alleging that the state’s extensive inquiries led to retaliatory measures that significantly disrupted patient intakes and jeopardized the clinics’ ability to maintain necessary licenses and receive Medicaid funding. In a phone interview, Hutchings expressed his profound disappointment with the judge’s decision, arguing that the state’s actions have already inflicted considerable financial and operational harm on his clients.

The lawsuit names several state entities and officials, including the Nevada Health Authority, its director Stacie Weeks, and social services chief Michael Gorden, as well as the Nevada Department of Human Services and its director Richard Whitley. Additionally, multiple state inspectors are also listed as defendants.

Concerns Over Investigative Practices

According to the complaint, state investigators have conducted unannounced visits to Moriah facilities from late 2024 to mid-2025 in an intimidating manner. Hutchings alleges that state officials refused to clarify the purpose of their visits while demanding access to patients, staff, and confidential records. He argued during the hearing that these tactics violate the Fourth Amendment of the U.S. Constitution, which protects against unreasonable searches and seizures.

In response, Deputy Attorney General Abigail Pace defended the state’s actions, emphasizing the need for rigorous oversight of licensed medical facilities. She noted that complaints had been filed against Moriah and its subsidiaries involving allegations of physical and sexual abuse, neglect, and inadequate supervision. Pace pointed out that facilities like Moriah, having accepted specific terms for licensing, are subject to heightened scrutiny to ensure compliance with state regulations.

Ongoing Legal and Business Challenges

Weeks, the director of the Nevada Health Authority, stated in an email that she cannot comment on the specifics of the ongoing litigation but expressed satisfaction with the recent court ruling. “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,” Weeks said.

The legal disputes have broader implications for Moriah’s operations beyond Nevada. Hutchings indicated that the state’s actions could potentially threaten Moriah’s facilities in other states, such as Illinois and Iowa. He warned that continued regulatory pressure could lead to the closure of Moriah’s facilities. Hutchings stated, “Part of this lawsuit is that we are suing the state for recovery of the destruction of the business.”

The administration of Governor Joe Lombardo recently restructured Nevada’s health oversight framework, separating the former Department of Health and Human Services into the Nevada Health Authority and the Department of Human Services. The lawsuit occasionally refers to the agencies by their previous designation, highlighting the ongoing complexities in the state’s health oversight landscape.

The outcome of this legal battle holds significant implications not only for Moriah Behavioral Health but also for the mental health services landscape in Nevada, as stakeholders continue to navigate the challenges of compliance and oversight in a sensitive sector.