NCG Care Fired Counselors After Client Death, Court Finds
Three substance abuse counselors say they were terminated after fighting to secure inpatient care for a client in crisis. Days after their recommendation was overridden, the client died of an overdose.
In March 2021, three licensed substance use disorder counselors in North Carolina recommended that a client in acute mental distress be moved to inpatient hospitalization. Their supervisor changed the letter from requesting a higher level of care to a different level of care, blocking the transfer. Three days later, the client died of a drug overdose. When the counselors raised concerns to upper management, they were warned to watch what they said. Nine days later, all three were fired. A federal appeals court ruled their lawsuit could proceed, finding they plausibly alleged termination for complying with professional ethics laws.
This case exposes how corporate healthcare structures can override clinical judgment with fatal consequences.
The Allegations: A Breakdown
| 01 | NCG Assistant Director Jessica Tewell changed a treatment recommendation letter from requesting a higher level of care to a different level of care, preventing a client in crisis from accessing inpatient hospitalization. The client died of an overdose three days after the altered letter was sent. | high |
| 02 | Tewell replaced clinical information in the letter with false and inaccurate information, despite having never met the client. She based her edits solely on reviewing the client record. | high |
| 03 | The counselors repeatedly asked Tewell for over a week to approve their recommendation for a higher level of care. Tewell steadfastly refused, even after the client’s probation officer reminded NCG that the client would be ineligible for inpatient hospitalization without this recommended change. | high |
| 04 | After the client’s death, Tewell insisted on completing the incident report herself without any direct knowledge of the client’s condition and without conferring with the counselors who had firsthand knowledge. | high |
| 05 | When clinical supervisor John Szwyd reported Tewell’s actions to Regional Director Ron Ross, Ross responded with a warning: if I were you, I would watch what you say and who you say it to. | high |
| 06 | Nine days after Szwyd told Ross about Tewell’s refusal to approve the higher level of care recommendation, NCG terminated all three counselors. | high |
| 07 | The North Carolina Department of Health and Human Services investigated and found that Tewell failed to demonstrate competency. She failed to sign a letter referencing a need for a higher level of care for seven business days and edited information in the letter with inaccuracies. | high |
| 08 | The state agency determined Tewell recommended a different service that was not recommended by the clinicians, based on edits she made despite never having met the client. | high |
| 01 | The North Carolina Department of Health and Human Services conducted its investigation only after the counselors filed a complaint several months after they were terminated, not in real time when the incident occurred. | medium |
| 02 | The district court initially dismissed the counselors’ lawsuit, analyzing regulations not even cited in their complaint while ignoring the specific North Carolina Substance Use Disorder Professional Practice Act rules they actually invoked. | medium |
| 03 | The at-will employment system in North Carolina allows employers to fire workers for no reason or any reason, creating an uphill battle for employees who claim wrongful termination even when they invoke statutory protections. | medium |
| 04 | NCG’s internal reporting structure allowed management to control official documentation, with the Assistant Director rewriting the incident report to exclude references to wrongdoing despite having no direct patient contact. | medium |
| 05 | The fragmented nature of healthcare oversight in the United States meant that multiple agencies share partial responsibility, creating jurisdictional gaps where serious issues can persist undetected. | medium |
| 06 | Even after the Department found Tewell violated North Carolina law by failing to demonstrate competency, tangible punishment appeared minimal, with no evidence of systemic reforms at NCG. | medium |
| 01 | The change from higher level of care to different level of care was not merely semantic. Higher level of care directly implies the necessity of inpatient admission under American Society of Addiction Medicine guidelines, while different level could mean lateral or even lesser intensity interventions. | high |
| 02 | Without a recommendation for higher level of care, the client could not be moved to inpatient hospitalization, which the counselors believed was clinically indicated and potentially life-saving. | high |
| 03 | The client’s probation officer repeatedly asked for the letter to specify a higher level of care, confirming he was aware that only this specific language would enable the transfer to inpatient treatment. | high |
| 04 | NCG required all letters of this kind to be approved in advance and co-signed by Assistant Director Tewell, giving management control over clinical recommendations that should have been driven by professional judgment. | medium |
| 05 | The counselors were left with no alternative but to send the letter as modified by Tewell, despite believing it would prevent the client from receiving necessary inpatient care. | high |
| 06 | The organizational culture at NCG prioritized managerial approval over front-line clinical expertise, with non-clinical administrators effectively overriding the professional judgment of licensed substance use disorder professionals. | high |
| 01 | The counselors were licensed professionals legally obligated under the North Carolina Substance Use Disorder Professional Practice Act to protect client safety and welfare, employ their knowledge and skills, and maintain accurate records. | medium |
| 02 | By recommending the client receive a higher level of care, the counselors employed their knowledge, skill and proficiencies within their scope of practice as required by state regulations. | medium |
| 03 | The counselors attempted to complete an incident report as required by regulations mandating accurate record-keeping that supports the client’s treatment experience and welfare, but were prevented from doing so. | medium |
| 04 | Failure to comply with the professional requirements could lead to discipline by the state board, including the potential loss of the counselors’ professional licenses. | medium |
| 05 | Regional Director Ross’s warning to watch what you say and who you say it to created a climate of intimidation, discouraging employees from reporting patient safety concerns. | high |
| 06 | The suspicious timing of the terminations, nine days after raising concerns to upper management, suggests retaliation for fulfilling professional and ethical obligations. | high |
| 07 | The three counselors lost their employment, their livelihoods, and potentially their professional reputations after advocating for a vulnerable patient, while the supervisor who altered the treatment recommendation remained employed. | high |
| 01 | The client was experiencing extreme mental distress in March 2021 and was not following her prescribed treatment program when the counselors developed a crisis prevention and intervention plan. | high |
| 02 | When the client refused to comply with the initial crisis prevention plan requiring immediate intensive outpatient treatment, the counselors reassessed and determined she needed to be moved to inpatient treatment. | high |
| 03 | The counselors were acting as first responders for a client in crisis, developing crisis prevention and intervention plans that included assessments of the necessary level of care. | medium |
| 04 | Three days after the altered letter was sent recommending only a different level of care instead of a higher level, the client died of a drug overdose. | high |
| 05 | The counselors were concerned that Tewell’s refusal to approve the letter recommending a higher level of care may have contributed to the client’s death because this omission prevented her from being moved to inpatient hospitalization. | high |
| 06 | Substance use disorder patients requiring heightened monitoring and interventions need Level III care, which denotes inpatient treatment, while Level II care refers to intensive outpatient treatment like that provided by the counselors. | medium |
| 07 | The client was also engaged with the criminal justice system through a probation officer, making her among the most vulnerable populations who rely on ethical, quality care from licensed professionals. | medium |
| 01 | The district court initially dismissed the case, finding the counselors failed to adequately plead their claim despite agreeing that the North Carolina Substance Use Disorder Professional Practice Act constitutes express public policy. | medium |
| 02 | The district court analyzed whether the counselors stated a claim under two regulations not even referenced in their complaint, while never analyzing the claims under the rules they actually specified. | medium |
| 03 | NCG’s corporate structure allowed management to shield questionable decisions by controlling official documentation, with internal managers rewriting crucial documents like incident reports. | medium |
| 04 | The Fourth Circuit Court of Appeals reversed the dismissal, finding the counselors plausibly alleged they were terminated in retaliation for complying with their professional obligations under state law. | medium |
| 05 | NCG advanced its own reasons for termination, such as performance issues or restructuring, which the employees viewed as pretext overshadowed by the suspicious timing. | medium |
| 06 | The appeals court rejected NCG’s attempt to justify dismissal by asking the court to consider its proffered reasons for terminating the counselors, noting that courts must not entertain factual disputes on a motion to dismiss. | medium |
| 01 | NCG owns and operates multiple facilities in North Carolina that provide mental health counseling and substance use disorder treatment and recovery services, affecting communities across the state. | medium |
| 02 | The three counselors worked together to provide services at several NCG facilities in western North Carolina, meaning their terminations disrupted care across multiple locations. | medium |
| 03 | When local organizations terminate highly qualified professionals, patients and families lose key resources, and the continuity of care critical for people undergoing substance use treatment is interrupted. | medium |
| 04 | A patient’s death by overdose affects not only the immediate family but also intensifies broader public health concerns in the community struggling with substance abuse issues. | high |
| 05 | Each whistleblower who is fired, marginalized, or leaves the field represents a loss to the community’s healthcare capacity, especially in substance use disorder counseling where specialized training is in short supply. | medium |
| 06 | Stories of retaliation against conscientious employees can deter other professionals from speaking out in their own workplaces, eroding trust in healthcare institutions and harming the public interest. | medium |
| 01 | The Fourth Circuit Court of Appeals found the counselors plausibly alleged NCG terminated them in retaliation for complying with their professional obligations under the North Carolina Substance Use Disorder Professional Practice Act. | high |
| 02 | The court recognized that North Carolina statutes and attendant regulations constitute the express public policy of the state, and terminating employees for following such policies violates wrongful termination protections. | medium |
| 03 | The case illustrates how corporate healthcare structures can override clinical judgment when profit margins or risk management concerns overshadow patient welfare. | high |
| 04 | The court reversed the district court’s dismissal and remanded for further proceedings, allowing the counselors’ wrongful termination claims to move forward. | medium |
| 05 | This case serves as a warning that front-line healthcare workers who champion patient safety may face swift retaliation unless stronger whistleblower protections and enforcement mechanisms are established. | high |
| 06 | The tragedy underscores that when employees who fulfill their professional and legal obligations are punished rather than praised, vulnerable patients pay the ultimate price. | high |
Timeline of Events
Direct Quotes from the Legal Record
“if I were you, I would watch what you say and who you say it to”
💡 This quote shows how NCG Regional Director Ross allegedly intimidated the clinical supervisor who raised concerns about patient care, creating a climate of fear for employees who speak up.
“[Tewell] failed to demonstrate competency – she failed to sign a letter for [the Client] that was requested by probation and forwarded to her by Substance Abuse Intensive Outpatient Program (SAIOP) staff referencing a need for a higher level of care for 7 business days, from 3/22/21–4/2/21 and edited information in the letter; the edited information included inaccuracies regarding lack of progress in the program, and a recommendation for a different service that was not recommended by the clinicians; [Tewell] based her edits upon review of the client record. She had never met [the Client].”
💡 The official North Carolina Department of Health and Human Services investigation confirmed that the supervisor who overruled the counselors violated state law by altering their clinical recommendation despite having no direct patient contact.
“Tewell modified the treatment recommendation for the Client from a ‘higher level of care’ to a ‘different level of care.'”
💡 This seemingly small edit prevented the client from qualifying for inpatient hospitalization, which the counselors believed was clinically necessary and potentially life-saving.
“to safeguard the public health, safety, and welfare, to protect the public from being harmed by unqualified persons, to assure the highest degree of professional care and conduct on the part of credentialed substance use disorder professionals”
💡 This is the stated purpose of the North Carolina Substance Use Disorder Professional Practice Act, the law the counselors were following when they were allegedly fired.
“there can be no right to terminate [an at-will employee] for an unlawful reason or purpose that contravenes public policy. A different interpretation would encourage and sanction lawlessness, which law by its very nature is designed to discourage and prevent.”
💡 The North Carolina Supreme Court established that even in an at-will employment state, firing someone for following the law is wrongful termination.
“At the very least public policy is violated when an employee is fired in contravention of express policy declarations contained in the North Carolina General Statutes.”
💡 This principle from North Carolina case law forms the basis for why the Fourth Circuit allowed the counselors’ lawsuit to proceed.
“if Deerman, as alleged, was terminated for meeting the minimum requirements of the practice of nursing as established and mandated by the NPA and regulations thereunder, then such termination violated the public policy of this state to ensure the public a minimum level of safe nursing care.”
💡 The Fourth Circuit applied this precedent from a nearly identical nursing case to find that the counselors plausibly alleged wrongful termination for complying with professional standards.
“Without a recommendation for a ‘higher level of care,’ the Client could not be moved to inpatient hospitalization, which the Counselors believed was clinically indicated.”
💡 This shows the direct link between the supervisor’s language change and the client’s inability to access potentially life-saving treatment.
“Three days after Shook sent the letter, the Client died of a drug overdose.”
💡 The client died just 72 hours after the modified letter was sent, underscoring the urgency of the counselors’ original recommendation.
“Shook was precluded from completing an incident report, however, because Tewell insisted upon completing the incident report herself. Tewell did so without any direct knowledge of the Client’s condition and without conferring with Shook or the other Counselors.”
💡 This shows how NCG management controlled official documentation to potentially minimize corporate liability, preventing the only employee with firsthand knowledge from filing the required report.
“The Counselors plausibly allege NCG terminated them in retaliation for complying with their professional obligations under SUDPPA and its attendant regulations.”
💡 The Fourth Circuit’s finding validates that this was not just a personnel dispute but a case where corporate interests allegedly overrode legally mandated patient care standards.
“employ their knowledge, skill and proficiencies within their scope of practice”
💡 This regulation required the counselors to use their professional judgment to recommend appropriate care, which is exactly what they did before being fired.
“The distinction between a ‘higher level of care’ and ‘different level of care’ is an obvious one—’different’ can also mean a lower level of care—but also, inpatient hospitalization would only be available under a higher of level of care in accordance with the standards established by the American Society of Addiction Medicine.”
💡 The court recognized this was not a semantic quibble but a clinically significant change that determined whether the client could access inpatient treatment.
“the Counselors attempted repeatedly for over a week to persuade Tewell to approve their recommendation of a ‘higher level of care’ for the Client. Tewell steadfastly refused”
💡 This shows the counselors made sustained efforts to secure proper care for their client, demonstrating their commitment to professional ethics before being terminated.
“We also reject NCG’s attempt to justify dismissal of the Counselors’ case by asking us to consider its proffered reasons for terminating the Counselors. This we cannot do. It is well-established that courts must not entertain factual disputes on a Rule 12(b)(6) motion to dismiss.”
💡 The appeals court refused to let NCG use alternative explanations for the terminations to dismiss the case at this early stage, requiring the claims to be heard on their merits.
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