The Maine Department of Health and Human Services (DHHS) recently terminated its service agreement with Portland-based Paradise Residential Services (PRS) following an investigation that found patients in “immediate jeopardy” due to severe health and safety violations.
Disturbing Findings in Patient Homes
The termination, effective March 9, 2026, followed a year-long investigation and credible complaints about the treatment of clients with autism and other developmental needs. State health officials detailed a series of “serious deficiencies” and neglect, including:
- Physical Hazards: Homes were found with broken glass and toxic mold.
- Neglect of Basic Needs: Residents were left unsupervised, and many were found with inadequate food.
- Sanitary Violations: Investigators discovered evidence of resident incontinence being hidden in closets rather than properly cleaned.
- Failure to Protect: The state concluded that PRS failed to protect its vulnerable clients from abuse, neglect, and exploitation.
Financial and Regulatory Scrutiny
While Maine DHHS stated the contract was dropped primarily for safety reasons, the move comes amidst broader scrutiny of MaineCare (the state’s Medicaid program).
Aggressive Billing: PRS reportedly billed taxpayers nearly $16 million over three years, with billing for some patients peaking at over $41,000 per month—more than double the national average for similar services.
Explosive Growth: The company’s client base surged from 12 in 2022 to 237 by 2024, a rapid expansion that coincided with an influx of asylum seekers who were often hired as direct support professionals.
Broader Federal Audit: This action follows a federal audit from the HHS Office of Inspector General which estimated that Maine made at least $45.6 million in improper Medicaid payments for child autism services in 2023 alone.
Patient Transition and Appeals
The state has deployed a Rapid Response Team to transition affected individuals to new group home providers. Although Paradise Residential Services is currently undergoing an appeals process, DHHS is reviewing the relocation of patients weekly to ensure services continue without interruption.
Republican state leaders have cited the case as a critical example of “fraud, waste, and abuse” within the state’s Medicaid system, calling for more rigorous oversight of at-home care providers.