During a 2017 House hearing, hedge fund billionaire Steven Cohen proposed a plan to open a chain of free mental health clinics nationwide for veterans and backed the initiative with $275 million. However, the initiative has not proved as successful as originally believed, according to a joint investigation by Fortune and ProPublica.
Here are seven things to know about the Cohen Veterans Network, which formed in 2016:
1. During the hearing last year, the Cohen Veterans Network said it aims to "provide a desirable alternative" to the healthcare services offered by the U.S. Department of Veterans Affairs. However, internal documents, emails and interviews with current and former employees obtained by ProPublica and Fortune reveal the organization suffers from mismanagement and is only able to provide treatment services to a handful of veterans.
2. The Cohen Network opened its first clinic in Los Angeles in mid-2016. Internal reports and records suggest the clinic began suffering from problems almost immediately after the staff was hired. The facility consisted of a shared hallway in a Los Angeles-based USC dermatology department facility and only had three therapy rooms for six therapists.
3. A February 2017 internal review also found "ongoing clinical data errors" in the clinic's medical records system. The review found that within six months of opening, the clinic saw 116 patients, which cost the clinic $10,282 per patient, as patients were not made to pay for services.
4. In June 2017, Cohen Veterans Network President and CEO Anthony Hassan emailed staff to inform them of the clinic's closure, which abruptly cut off some patients' treatment, despite Mr. Hassan's insistence that no patient's treatment was interrupted, according to the report.
5. The Cohen Network initially told employees the clinic would reopen, but it never did. The location was eventually scrubbed from the network's website.
"We just ghosted. We just split town, and what about all of these patients? The really bad part is, nobody seemed to care," a former employee told ProPublica and Fortune reporters.
6. Officials at the organization claimed the network should receive funding from the VA for services it provided veterans. When no funding became available, officials crafted a bill to let the VA pay for veterans to obtain services from private mental health providers like the Cohen clinics. However, the bill raised objections from several major veterans organizations that oppose privatizing the VA. The VA also highlighted several concerns regarding the bill, including that it carved out a new private care program that conflicted with other laws on eligibility and funding, the report states.
7. However, despite the backlash, the Cohen Veterans Network remains committed to its original goal. It recently opened its 10th clinic and plans to have a total of 25 facilities by 2020. Mr. Cohen is reportedly considering even more funding to the venture, the report states.
To access the report, click here.