Zen Group, Inc., et al v. State of Florida Agency for Health Care Administra, et al, No. 22-10319 (11th Cir. 2023)
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Zen Group, Inc., is “a Florida Medicaid provider of services to developmentally-disabled minors.” Zen Group alleges that beginning in 2018, the Florida Agency for Health Care Administration wrongfully attempted to recoup payments rendered under the Agency’s “Behavior Analysis Services Program.” Zen Group asserts that the officials made baseless referrals for investigation of fraud and suspended payments to Zen Group in retaliation for the previous exercise of its constitutional rights in an administrative proceeding. Zen Group complained that the officials’ retaliation violated its due-process rights under the Fourteenth Amendment and its speech and petition rights under the First Amendment. The district court dismissed the complaint.
The Eleventh Circuit affirmed. The court held that Zen Group’s due process and First Amendment claims for damages are both barred by qualified immunity. And Zen Group lacks standing to seek injunctive relief. The court explained that Zen Group alleged that it had “completely ceased operations” in June 2020. It did not allege that it had resumed providing services to Medicaid recipients. The court explained that in that context, the most it can fairly infer from the assertion that Zen Group “remains a Florida Medicaid provider” is that Zen Group remains an active corporation authorized by the state to provide Medicaid services, even though it is not currently doing so. The allegations in the amended complaint do not support the inference that Zen Group faces anything more than a speculative risk of future injury if it resumes providing services or the officials decide to engage in retaliatory fraud referrals against an inactive provider with respect to services rendered in the past.
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