Nevada health officials have resumed inspections at facilities operated by Moriah Behavioral Health, a Las Vegas-area mental health provider. This decision follows a court ruling that dissolved a temporary restraining order against the Nevada Department of Human Services and the Nevada Health Authority, allowing them to pursue inspections and demands for records deemed “overly expansive” by the mental health clinics involved.
The ruling by District Judge Jennifer Schwartz on November 20, 2023, lifted the restrictions previously imposed on the state agencies. According to attorney Mark Hutchings, who represents Moriah and its subsidiaries, this development has caused significant disruption to their operations. Hutchings stated that the state’s actions have resulted in retaliatory sanctions that hinder patient intakes and jeopardize the clinics’ licensing and eligibility for Medicaid funding.
Following Schwartz’s ruling, the state notified the clinics that inspections would proceed on November 21, 2023. Hutchings expressed his disappointment with the court’s decision, 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. Multiple investigators from state agencies are also listed.
Concerns Over Inspection Practices
The complaint alleges that from late 2024 to mid-2025, state investigators regularly conducted unannounced inspections at Moriah facilities in a manner described as “intimidating and demeaning.” According to the complaint, state workers often refused to disclose the purpose of their visits and demanded access to staff, patients, and sensitive records.
Hutchings argued during the court hearing that these inspections violate the Fourth Amendment of the U.S. Constitution, which protects against unreasonable search and seizure. In response, a deputy attorney general from the office of Aaron Ford stated that the inspections were necessary to enforce state regulations, citing complaints against Moriah regarding allegations of physical and sexual abuse, neglect, and inadequate supervision.
Deputy Attorney General Abigail Pace emphasized that licensed facilities like Moriah are subject to heightened scrutiny to ensure compliance with regulations required for receiving Medicaid funding. She noted a prior settlement involving Moriah when the state sought to revoke the license of its group home.
Implications for Business Operations
Weeks, director of the Nevada Health Authority, expressed support for the court’s ruling, stating the agency is “pleased” with the decision to maintain oversight of facilities that care for vulnerable children. The agency’s primary goal, she indicated, is to ensure safe and quality care in the state.
Despite ongoing disputes, Hutchings highlighted that the state’s actions have far-reaching implications beyond Nevada, adversely affecting Moriah’s operations in other states, including Illinois and Iowa. He remarked, “Part of this lawsuit is that we are suing the state for recovery of the destruction of the business.”
The lawsuit aims to address the broader impact of the state’s regulatory actions on Moriah’s ability to operate effectively, with Hutchings warning that continued illegal regulatory practices could lead to the closure of the business altogether.
As the legal proceedings continue, both the state and Moriah Behavioral Health remain entrenched in a complex dispute over regulatory practices and operational integrity, with significant implications for the future of mental health services in Nevada.
