NeuroPsychiatric Hospitals says leadership changes in 2022 improved care. A WFYI review of records, interviews and filings found patient harm, a death linked in a state review to substandard care, serious safety violations and limited state action.
A family’s lawsuit settled in March 2026 after a state review board concluded the hospital failed to meet the standard of care in a patient’s 2018 death.
WFYI identified allegations of abuse, two federal "immediate jeopardy" findings and other serious safety concerns that occurred after the chain’s 2022 leadership overhaul.
State oversight was limited: inspectors referred 151 complaints to the attorney general’s office but only 11 moved past initial review, and a statutorily created independent investigative office sat unstaffed from 2022 until 2025.
NeuroPsychiatric Hospitals, a for-profit psychiatric hospital chain based in Indiana that treats patients with both medical and psychiatric needs, told reporters its 2022 leadership change produced major improvements. WFYI reviewed inspection records, court filings, police reports and interviewed more than 40 former patients, family members and staff and found significant problems continued after that stated reform.
Pawlus sued the facility in 2020 alleging failures to monitor for sedation and to track fluid and food intake, leading to dehydration, hypernatremia, encephalopathy and death. The lawsuit settled in March 2026. Pawlus also brought her case to the Indiana Patients Compensation Fund. A review board of medical providers unanimously concluded the facility failed to provide the appropriate standard of care based on the submitted evidence.
Allegations and regulatory findings after 2022
WFYI's reporting found additional allegations occurring after the chain's 2022 leadership overhaul. Those included accusations of patient abuse and at least two "immediate jeopardy" findings — the highest deficiency classification used by the Centers for Medicare & Medicaid Services when patients face imminent risk of harm or death.
State oversight and enforcement gaps
NeuroPsychiatric Hospitals serves patients with combined medical and psychiatric needs — a population many psychiatric settings are not designed to treat. Where oversight is limited and serious deficiencies occur, patients with complex needs face elevated risk. Families who reported harm described long delays before action or meaningful state intervention.
Monitor any follow-up inspections, whether the attorney general advances more complaints, and legislative activity proposing concrete oversight or staffing changes for independent investigations. Families and former staff who shared accounts with WFYI said they want clearer enforcement and independent review when allegations arise.
WFYI's investigation shows that despite claims of organizational reform, serious allegations of patient harm and regulatory findings continued at NeuroPsychiatric Hospitals after 2022. State mechanisms intended to investigate and act on those complaints were limited in practice during the period reviewed.
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