Wyden calls for investigation of youth residential treatment centers over 'rampant abuse'

Sen. Ron Wyden (D-Ore.) called for the Department of Justice (DOJ) to investigate youth residential treatment facilities operated by multiple national health care companies, alleging evidence of civil rights violations and Medicaid fraud.

In two letters to Attorney General Merrick Garland, Wyden claimed evidence showed "civil rights violations of children and young people" as well as "abuse, neglect, and fraud" carried out by four operators of youth residential treatment facilities: Universal Health Services, Acadia Healthcare, Devereux Advanced Behavioral Health and Vivant Behavioral Healthcare.

The Senate Finance Committee, which Wyden chairs, released a report earlier this year titled "Warehouses of Neglect: How Taxpayers Are Funding Systemic Abuse In Youth Residential Treatment Facilities."

The report resulted from a two-year investigation carried out by the Finance Committee and the Senate Committee on Health, Education, Labor and Pensions. It alleged that these treatment facilities were rampant with multiple forms of abuse, unsanitary conditions and an operating model that incentivized profits over health care.

Apart from Devereux, all the companies named in Wyden's letters are for-profit companies.

Wyden also alleged these facilities take in billions in Medicaid dollars while failing to adhere to regulations set by the Centers for Medicare and Medicaid Services.

"Recently, deficiencies similar to those presented in my report were the basis of a $20 million settlement between the DOJ and Acadia Healthcare in which it was alleged that the company made baseless admissions to its adult facilities, failed to provision services to patients in its care, and chronically understaffed its facilities, leading to patient injury and death," Wyden wrote, referring to a recent settlement in which Acadia admitted to no wrongdoing.

The Oregon senator referred the findings of this report to the DOJ, asking that the agency look into whether these companies are failing to adhere to Medicaid requirements, billing Medicaid for substandard care and if they are violating Title II of the Americans with Disabilities Act.

When reached by The Hill, Universal Health Services called the Senate report's findings "incomplete and misleading."

"We acknowledge that there have been isolated incidents over our many years of dedicated service at some of the facilities where the treatment of a resident has not met our expectations," said the company. "Such incidents belie the commitment of these facilities to provide a safe and therapeutic environment as well as the policies, procedures, protocols and training for the facilities."

Devereux Advanced Behavioral Health said in a statement, "It’s unfortunate Devereux continues to be lumped together with a group of for-profit corporations, which may not operate in a similar manner to us."

"But the facts tell the truth about our organization, a truth which is reinforced by today’s letter itself. Of the 50 incidents cited by Senator Wyden in his letter, which he says illustrate his concerns and calls for action, not a single one occurred at Devereux," the statement continued. "We are saddened that neither Senator Wyden, nor a single member of his staff or the staff of the Senate Finance Committee, have ever visited a Devereux location. We hope they will take us up on the offer and get to know our organization."

Updated at 8:54 p.m. EST.