civus
Hearing video

ZBA Hearing - April 24, 2024

Philadelphia Zoning Board of Adjustment (ZBA)Apr 24, 20246h 7m

false claims lawsuit that was from 2021, in which he's, as we go through the complaint,

Similar wording

we'll see the references to various practices that Mr. Devaney contributed to that were part

Similar wording

of the false claims. There was billing, false billing, that was basically defrauding Medicare

Similar wording

out of significance of money.

Similar wording

Money was a $15 million settlement

Similar wording

that was reached in that case.

Similar wording

So we have the complaint.

Similar wording

Is he asking a question?

Similar wording

This is what he's going through the exhibits, right?

Similar wording

I thought this was cross.

Similar wording

If he's asking a question, let him ask a question.

Similar wording

Right.

Similar wording

I think that's fair.

Similar wording

If you have something you want to ask,

Similar wording

if you have something you want to ask them,

Similar wording

please ask them.

Similar wording

and if you use that as a backup that's so uh mr devaney um in paragraph 115 of the complaint it

Similar wording

states on june 11th 2018 uh this has to do with miss spruel um on the same day she emailed you

Similar wording

expressing frustration over being forced into a position and being demoted to a therapist

Similar wording

do you recall um do you recall um this this email and and and these these allegations that the

Similar wording

government made against objection it's beyond direct objection it's not how to be on direct

Similar wording

he said that he is a qualified person and we're now seeing that he's involved

Similar wording

listen listen to me listen to me you gotta stop number one this was a lawsuit am i correct steve

Similar wording

this was a prosecution by the department of justice and by the state of delaware but but not

Similar wording

not criminally individuals criminally this was the institution they were suing right no no they

Similar wording

also named various um they named people but what i'm saying it wasn't a criminal charge am i right

Similar wording

no this was civil and it was settled by the department of justice as a that's what i'm

Similar wording

saying it's all civil okay right you can ask him a question about something you see in there

Similar wording

but move on with that please okay mr mr devaney you see the in the green the green highlighted

Similar wording

areas where your name is is um is indicated as being part of the of the of the activities that

Similar wording

happened around this lawsuit is that correct i do okay and are you aware that you that that

Similar wording

organize that your organization had to enter into a settlement uh and pay 15 million dollars to the

Similar wording

department of justice i actually did not know that they entered into a settlement okay you're aware

Similar wording

that you were part of that that you were listed in the complaint is that true what's i'm i mean

Similar wording

my name is throughout is in that document but i was not individually named in any complaint

Similar wording

right in in paragraph 188 it says that you repeatedly pressured the employees to meet

Similar wording

their billing targets and demanded detail plans how they were going to meet their targets

Similar wording

in 190 it says that you gave the act one team in newark until the end of the day to add your

Similar wording

June hours, the team was instructed to go back

Similar wording

into Lynx and their schedules to review

Similar wording

their June hours and add what they may have missed.

Similar wording

Mr. Chairman, again,

Similar wording

right? These statements

Similar wording

that he's saying in a

Similar wording

complaint...

Similar wording

Does he want to respond to what you just read?

Similar wording

I mean, instead of just going over...

Similar wording

All right, Mr. Devaney,

Similar wording

do you have a response to

Similar wording

these actions

Similar wording

being listed in the

Similar wording

complaint for

Similar wording

the false claims,

Similar wording

the fraudulent billing of Medicare and Medicaid payments.

Similar wording

give me a delaney i'm here i'm thinking about how to respond to this okay sure sure um excuse me

Similar wording

can i sorry can i interject um mr masters was i know this was civil litigation but was mr delaney

Similar wording

individually named or part of the settlement that that came out of these complaints he his mother

Similar wording

was and two other principals were um mr mr devaney was he so so here's here's the relevance um members

Similar wording

of the board mr devaney is saying that he is a good manager he's going to take this program which

Similar wording

doesn't exist at all and he's going to make he's going to build it into a great a great program

Similar wording

um in his past it's very important to to note that he was part of a corrupt organization that

Similar wording

defrauded medicare and medicaid of millions and millions of dollars he then was part of the

Similar wording

organization that engaged in right okay um so the the crux of the matter is he worked at a place

Similar wording

that the justice department sued right sued for civil litigation that they were doing some things

Similar wording

wrong whether it was billing drugs or whatever and the that institution then settled not him

Similar wording

but the institution right but it's it's more your mr chair it's more than he worked at a place

Similar wording

he was the coo he was the number i understand i understand i understand yeah yeah so so now he

Similar wording

now he's the general manager of of um let's let we'll move on to to um to american treatment

Similar wording

centers mr uh mr devaney um isn't it true that american treatment centers is operates a hundred

Similar wording

percent uh outpatient facilities there's no residential treatment that you provide

Similar wording

well first it's american treatment network so i i don't want the anyone to be mistaken by the name

Similar wording

okay okay thank you uh yes right now what we do is outpatient services you have no residential

Similar wording

facilities not at the time have you ever had residential facilities not at american treatment

Similar wording

network no sir right okay so you also um in the last hearing there was testimony that there's a

Similar wording

contract between american treatment network and this new uh entity that you now are going to be

Similar wording

the the director of apparently to can you describe what the terms of that contract are objection

Similar wording

what's the objection this goes into the financial interest that he's testifying exactly that he's

Similar wording

making money on this transaction and this is a zoning hearing not a financial uh uh uh witch hunt

Similar wording

so mr chairman mr masters have constantly taken a position that this that this application

Similar wording

isn't financially viable that is that that is so un-american because as you sit here

Similar wording

that is not for the board to decide if we mr harrow the question i asked wasn't about whether

Similar wording

is viable we we i wasn't you just he just used the words of financial interest i want to know

Similar wording

i want to know what his financial interests are in the exactly you just used the words again

Similar wording

he you're still mr devaney you're still going to be with american treatment network is that correct

Similar wording

that's correct right so what is the contract what is the amount of money

Similar wording

that American Treatment Network

Similar wording

is receiving an industry entity.

Similar wording

There is a contract.

Similar wording

That's what has been testified.

Similar wording

That's what's been placed there.

Similar wording

It's apparent he has a contract, Steve.

Similar wording

He still works for the other company.

Similar wording

He's going to go here,

Similar wording

the way I understand it,

Similar wording

and be the interim head

Similar wording

to get this place open.

Similar wording

Mr. Devaney,

Similar wording

will you still also be employed

Similar wording

by American Treatment Network

Similar wording

at the same time

Similar wording

that you're at this new facility?

Similar wording

the the agreement is between uh american treatment network and and the company that

Similar wording

owns this property i'm uh so my role this will be part of my role in my function and duty at

Similar wording

american treatment network right so you are you are the general manager of american treatment

Similar wording

network and this facility is going to be somehow related to your operations is that is that what

Similar wording

you're saying to help get it open and started okay so you're kind of incubating it or or cure

Similar wording

incubating it or or cure or or basically helping to to launch it it he asked he already answered

Similar wording

or or basically helping to

Similar wording

that okay he's the interim head he'll be the interim head so you're so there is a financial

Similar wording

you confirm there is a financial relationship and you are benefiting financially from already

Similar wording

relationship with with the american treatment network he has it chris steve he has a he has a

Similar wording

contract. All right. Does American Treatment Network currently have any contracts for Medicaid

Similar wording

funding from CBH? Yes. Objection, because this is beyond the scope of direct. The American

Similar wording

Treatment Network isn't filing for an application. The only extent that the question should be is

Similar wording

that, is there a relationship between American Treatment Network? And that's it. But to start

Similar wording

peeling back, I'm not finished my objection, but to start peeling back as to whether American

Similar wording

Treatment Network can work, does have the ability to be financial, that's beyond the scope of

Similar wording

free direct steve mr devaney said to us that he is confident that he can build up this new facility

Similar wording

and he works with cbh and he understands how medicaid funding works obviously he was involved

Similar wording

with the medicaid fraud in the past but now he says that he knows how it works uh correctly and

Similar wording

steve steve listen he said you can ask them about cbh and that so ask the question that you want

Similar wording

Right. All right. Mr. Devaney, you you're saying that that you have a contract with CBH for outpatient services with Medicaid. Is that correct?

Similar wording

That's correct.

Similar wording

Do you have any contracts with with CBH for inpatient for for residential treatment of with Medicaid?

Similar wording

No, sir.

Similar wording

Do you do you agree that there are different standards and different and different levels of regulation that have to do with Medicaid funding for residential versus outpatient?

Similar wording

Yes. Okay. So you don't have any direct experience with Medicaid funding for residential

Similar wording

in Pennsylvania. Is that correct? That's correct. All of the residential that you did was way back

Similar wording

in the past and it was in Delaware or in Maryland. Is that correct? That's correct.

Similar wording

Okay. So you now want to take over a facility that's a residential facility in Pennsylvania,

Similar wording

but you've never had any experience with residential treatment in Pennsylvania up till now.

Similar wording

That's correct, right?

Similar wording

In Pennsylvania, yes, that's correct.

Similar wording

And you agree that the regulations and the rules in Pennsylvania are different than Delaware and Maryland?

Similar wording

Yeah, I mean, yes.

Similar wording

Yes, I mean, ASAM is not used in Pennsylvania, for example, whereas in Delaware it was.

Similar wording

for licensing

Similar wording

do you do you know that i i know that ddap is adopting and has put out a literature

Similar wording

about comparing their current levels of care with 3.1 and 3.5 but but pennsylvania doesn't use the

Similar wording

asam um he just not in their not in their licensure standards that's correct right they don't so you're

Similar wording

now going into a jurisdiction that you've never

Similar wording

worked in before in terms of residential

Similar wording

and you're acknowledging that this

Similar wording

is the first that you're going to be doing this?

Similar wording

In Pennsylvania,

Similar wording

yes, sir. Okay.

Similar wording

Do you, have you spoken

Similar wording

to CBH about

Similar wording

how to get a contract for Medicaid

Similar wording

funding for people coming

Similar wording

to this residential facility?

Similar wording

Objection. Asking about

Similar wording

financial issues?

Similar wording

No.

Similar wording

I guess the question is, he's asking, did you do this because that's the way, are you going to try to run the place like that?

Similar wording

Are you bringing people? He hasn't said anything about financial.

Similar wording

I just said, he said, did you talk to CBH about how you could get people in here? That's all.

Similar wording

Right. I thought he said, excuse me, I thought he said, did you talk to CBH about contracting with them to get Medicaid?

Similar wording

CBH is only about Medicaid funding. That's all they do. Yeah. Yeah. And I heard the word

Similar wording

contracted. Uh-huh. So, Mr. Devaney, have you spoken to CBH about sourcing people to come into

Similar wording

your program on Moore Street? No, that would be premature. Okay. Do you understand that CBH has

Similar wording

Okay. Do you understand that CVH has no active RFPs out looking for new partners with residential treatment?

Similar wording

no active RFPs out looking

Similar wording

Objection.

Similar wording

I don't understand the relevance.

Similar wording

You don't understand the relevance?

Similar wording

Yeah, watch your mouth, Steve.

Similar wording

Well, the relevance is that he wants to run a program and he needs people in order to treat.

Similar wording

all right so so mr devaney where if you don't get if you don't get um clients from cbh do you

Similar wording

have a plan today that that that is is um is showing where your clients are going to come

Similar wording

from objection that's speculation i don't think that's appropriate well you don't think it's

Similar wording

appropriate for him to have a plan as to how he's going to to know what i don't think is appropriate

Similar wording

is saying that, hey, if you don't get a contract,

Similar wording

nobody can predict the future.

Similar wording

Neither can you, Steve.

Similar wording

All right, Steve, either move on or either.

Similar wording

Mr. Devaney, in terms of your thinking right now

Similar wording

as the interim director,

Similar wording

where are the clients going to come from for this program,

Similar wording

this residential treatment program?

Similar wording

I mean, I think I answered that earlier.

Similar wording

Are they coming from American Treatment Network?

Similar wording

No, I didn't say that.

Similar wording

So will you summarize where you think that the clients are coming from?

Similar wording

They're going to come from...

Similar wording

They're going to step down out of inpatient treatment units.

Similar wording

They're going to come from emergency rooms.

Similar wording

They're going to come from the community.

Similar wording

Okay. So you did talk about places where you were going to attempt to relate, to connect with different providers to see if you could encourage them to send people to your program.

Similar wording

um the the the demographics of the people in your program are they the same people

Similar wording

who would are they choosing between your residential facility and the betty ford center

Similar wording

or other other high-end programs that are available in devon for example

Similar wording

no i don't know what you mean by that yeah and i think i want to object because i think he

Similar wording

answered the question saying he will go go and seek out um but then i think you're asking

Similar wording

i'm asking whether these people have private insurance or whether they don't have private

Similar wording

insurance and are and are you are you do you have a strategy i don't understand the relevance of

Similar wording

that right and my objection still stands because it gets into a financial issue i i agree steve

Similar wording

try to move on from this okay um all right we'll we'll have we'll have our expert um address it

Similar wording

then um um mr devaney you testified that there's going to be up to 30 staff required at this

Similar wording

facility yes i said there were going to be 30 staff needed to operate the facility right

Similar wording