Minority-owned healthcare provider files emergency motion as State's collection actions threaten critical mental health services

BALTIMORE, Maryland - Today, Healthcare Living for Families Inc. (HCLF), a minority-owned mental health provider serving Baltimore's most vulnerable populations, filed an emergency motion for a temporary restraining order against the State of Maryland to prevent its imminent collapse due to aggressive collection actions. The motion comes amid a series of lawsuits alleging systematic discrimination in Maryland's Public Behavioral Health System.

In both its complaint and emergency motion, HCLF, which provides essential services including medication management, psychiatric rehabilitation, and substance use disorder treatment, reports that Maryland's Central Collection Unit (CCU) has been withholding 100% of its weekly federal vendor payments since October 24, 2024. These withholdings are based on disputed debt calculations stemming from estimated payments issued in 2020 during Optum Maryland's problematic rollout as the state's Administrative Service Organization.

"The CCU's actions threaten to force the closure of vital treatment programs serving hundreds of patients in the midst of an ongoing opioid crisis," said Jordan D. Howlette, Managing Attorney at Justly Prudent. "HCLF has already been forced to lay off more than 80% of its staff, and without immediate court intervention, this essential community healthcare provider faces complete shutdown within weeks."

The emergency motion alleges that neither Optum Maryland nor the CCU has provided sufficient documentation validating the claimed debt despite HCLF's repeated challenges. The withholdings have escalated since October, totaling over $48,000 in blocked payments for services already rendered to Medicare and Medicaid patients.

This case is one of multiple recent lawsuits filed by Justly Prudent revealing what appears to be a pattern of discriminatory practices affecting minority-owned healthcare providers in Maryland. The lawsuits allege that while minority-owned facilities face systematic barriers and aggressive collection actions, similarly situated white-owned providers receive more favorable treatment.

The case is Healthcare Living for Families Inc. v. Optum, Inc., et al. (Case No. C-24-CV-24-004408), filed in the Circuit Court for Baltimore County, Maryland.