Suspected unlicensed health care institution faces fines and cease and desist order

In Tempe, Arizona, a hotel property is currently under investigation by the state due to its suspected involvement in a scheme targeting Native Americans struggling with addiction. Unlicensed providers are utilizing the property to house victims and exploit Medicaid benefits and taxpayer dollars. The Navajo Nation Police Department is leading an operation to address the fallout of this scam and has been conducting surveillance at the property. Despite the property owner’s refusal to comment, court records reveal that their franchise agreement with Ramada was terminated. The property is suspected of running an unlicensed health care institution, violating health care standards, and engaging in fraudulent billing. As a result, the Department of Health Services has issued a cease and desist order and fines amounting to $141,000. The investigation is ongoing, and serious concerns about billing practices and the welfare of children at the property have been raised.

Background Information

In Tempe, Arizona, a hotel property has come under state investigation due to its involvement in a scheme that specifically targets Native Americans battling addiction issues. Unlicensed providers have been using the property to house victims and capitalize off Medicaid benefits and tax dollars. This alarming situation has caught the attention of the Navajo Nation Police Department, who are leading Operation Rainbow Bridge to confront the fallout of this scheme. The police department has been conducting surveillance at the hotel property to gather evidence and investigate the extent of the issue.

Hotel Property Profile

The hotel property in question closely resembles a Ramada Inn and is located on Scottsdale Road near Arizona State University. One notable observation made by Harland Cleveland, the special operations coordinator with the Navajo Nation Police Department, is the high foot traffic of Native Americans in the area. This suggests that the property may be attracting vulnerable individuals who are in need of behavioral health services. The property’s appearance as a typical hotel, combined with the constant influx of Native Americans, raises suspicions about what may be happening inside.

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Franchise Agreement Termination

When attempting to gain more insight into the situation surrounding the hotel property, investigators discovered that the owner of the property refused to comment on record. However, court records have revealed that the franchise agreement between the owner’s company and Ramada was terminated in February of 2022. This termination suggests that there may have been issues surrounding the operation and management of the property.

Suspected Violations

The hotel property is suspected of several serious violations, including running an unlicensed health care institution, violating health care standards, and conducting fraudulent billing. These allegations are particularly concerning, as they indicate that the property may have been engaging in illegal activities that endangered the lives and well-being of vulnerable individuals. The full extent of these violations is currently being investigated by law enforcement authorities.

Cease and Desist Order

In response to the suspected violations at the hotel property, the Department of Health Services has issued a cease and desist order. This order restricts the property from continuing its operations as an unlicensed health care institution and imposes fines totaling $141,000. This action by the Department of Health Services aims to put an immediate stop to any illegal activities and protect the welfare of those who may have been affected by the scheme.

Occupancy Status

Despite the cease and desist order and the fines imposed on the property, it is still occupied by the company that owns it. This lack of compliance with the order demonstrates a disregard for the law and a willingness to continue operating in violation of health care regulations. As a result, a notice of intent to revoke has been issued, indicating that further actions may be taken to shut down the property and hold those responsible accountable for their actions.

Ongoing Investigation

The investigation into the hotel property is still ongoing. Law enforcement authorities are diligently working to gather evidence, interview individuals involved, and uncover the full extent of the scheme. Serious allegations have been made regarding the property’s billing practices and concerns have been raised about the welfare of children who may have been living at the property. It is crucial that a thorough investigation takes place to ensure that justice is served and that those affected receive the necessary support and care.

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Conclusion

The situation surrounding the hotel property under investigation is deeply concerning and carries serious consequences for the suspected unlicensed health care institution. The scheme’s targeting of Native Americans battling addiction underscores the vulnerability of this community and the need for comprehensive support systems. The potential impact on the Native American community cannot be understated, as individuals struggling with addiction require appropriate treatment and care to overcome their challenges. As the investigation continues, it is important for the authorities to uncover the truth, bring justice to those involved, and provide support to the victims affected by this scheme. We eagerly await further updates from the ongoing investigation, in the hopes that justice will be served and the welfare of those affected will be safeguarded.