An October 28, 2026, KGW investigation by reporter Evan Watson raises serious questions about financial oversight and patient treatment at Medicine Wheel Recovery Services, an Oregon nonprofit providing addiction and mental health treatment. According to KGW, the organization billed Medicaid more than $14 million during 2024 and 2025, while Portland officials allege that it continued discharging Native American patients onto city streets, sometimes leaving them far from their homes without transportation back.

CharityWatch CEO, Laurie Styron, reviewed the organization’s tax filings for the investigation. “This is really a governance black hole,” Styron told KGW. “There’s no independent, audited financial statements. There’s really just a complete, almost a total lack of governance here to ensure that charitable dollars are being used properly … that’s really unusual for an organization of this size.”

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Medicaid Revenue Surges Alongside Executive Compensation

KGW found that Medicine Wheel’s revenue increased dramatically as the organization shifted from relying primarily on contributions and grants to Medicaid payments. Meanwhile, annual compensation for cofounders Tana Howtopat and Pamela Councell rose from $143,075 and $146,800, respectively, in 2022, to more than $260,000 each in 2025.

“It’s highly concerning when you see these kinds of pay jumps because nonprofit salaries are supposed to be based on the skills that you need to do the job competently,” Styron said. “When there is such a huge jump, the obvious question becomes, did you suddenly become that much better at your job?”

KGW also reported that Medicine Wheel’s tax filings did not indicate that its executive compensation was supported by independent review, comparative compensation data, or documented board approval.

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CharityWatch Raises Concerns About Independent Governance

Medicine Wheel’s leadership structure also underwent significant changes. According to KGW, the organization’s seven directors and officers other than its two cofounders were unpaid in 2022. By 2025, those individuals had been replaced, and six of the seven new directors and officers were receiving compensation ranging from $13,000 to more than $81,000.

“A charity’s board members, that’s generally an unpaid role because people understand that when you are being paid to make governance decisions, it’s difficult to be independent in those decisions,” Styron said. “In this case, you don’t have an independent board of directors. So, there’s really nobody watching the store.”

Medicine Wheel also reported that it did not obtain independent financial statement audits for 2022, 2024, or 2025. “This organization, you almost couldn’t design a charity less conducive for accountability than what I have seen with this one,” Styron said. “The lack of policies, audits, independent governance … this is an organization where the foundation is essentially conflicts of interest.”

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Oregon Officials Investigate Patient Discharges

Beyond the financial concerns, KGW reports that Portland officials believe Medicine Wheel may have continued sending former patients to Portland despite a cease-and-desist letter and the organization’s assurances that it had stopped. The investigation describes Native American patients brought to Oregon for treatment who subsequently found themselves homeless and far from their communities.

The Oregon Health Authority is investigating the organization, while city officials continue seeking answers about its discharge practices. KGW reported that Medicine Wheel did not respond to its repeated requests for comment.

The allegations underscore why financial accountability and independent nonprofit governance matter. Organizations entrusted with charitable resources and taxpayer funding must be accountable not only for how they spend money, but also for how they treat the vulnerable people they exist to serve.

Read the full investigation: KGW, “Six-figure raises, millions in Medicaid: Why city leaders believe Medicine Wheel is still ‘dumping’ patients in Portland” (October 28, 2026).

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