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State denies treatment provider’s license application

Posted on November 7th, 2025 By: Conor Wilson

The Washington Department of Health has denied the application of a Pierce County substance use treatment provider to become a credentialed behavioral health agency.

A notice from DOH accuses Peninsula Counseling, which appears to have close links with Rainier Recovery and operates locations in Gig Harbor and Edgewood, of violating a prior agreement by allowing a former CEO to oversee its day-to-day operations. Following an investigation last year, the department alleged that Rainier Recovery engaged in unethical practices motivated by financial gain.

The four-page notice dated Oct. 15 alleges Rainier Recovery founder Jeremiah Dunlap remained active in hiring, submitting insurance claims and other practices for Peninsula Counseling. DOH barred Dunlap from those activities last year.

Frank Ameduri, a spokesperson for the DOH, said the agency had about 10 more days to appeal the decision.

Gig Harbor Now was also unable to reach Dunlap for comment Thursday. He told the Tacoma News Tribune that he had sold the agency months ago, moved out of state and no longer works in the industry. He went on to call the DOH “lazy” and said it did not “look for facts or evidence.”

Rainier Recovery and Peninsula Counseling

Rainier Recovery ran three locations in Pierce County, including one at 3214 50th Street Ct. in Gig Harbor. Peninsula Counseling now occupies that location.

It shuttered operations after DOH suspended its licenses in December 2024. DOH investigators accused Dunlap and leadership in a 25-page investigation of hiring unqualified staff and frequently asking them to falsify clients’ treatment plans. Dunlap denied those charges.

DOH allowed Rainier Recovery to reopen, but placed it on prohibitionary status for at least a decade. The department ordered Rainier to pay a $10,000 fine, submit a plan of correction and hire a consultant to assist with an operational overhaul. Dunlap, originally from Gig Harbor, was also barred from remaining in charge of day-to-day operations.

Licensing

According to the DOH’s denial notice, Peninsula Counseling’s Behavioral Health Agency license expired in February 2024. The agency dissolved, briefly pausing care starting in November 2024. Patient services resumed in January of this year, the same month Peninsula Counseling submitted a license renewal application.

DOH denied that request, citing a May site visit and interview with a staff member. The department alleges that Dunlap was still involved in operations until a clinical supervisor was hired in April. The staff member told investigators the facility received payments and reimbursements through a bank account associated with Dunlap.

Online business records from the state Department of Revenue list Sherilyn Finlayson as the registered owner of Peninsula Counseling.

Owner respopnds

Sherilyn Finlayson, owner of Peninsula Counseling, denies the claims made by DOH. Finlayson said she purchased the agency from the previous owner in May of 2025. She said it has and remains its own entity and never been Rainier Recovery.

“I received a letter for intent to deny the application based off objective assumptions that previous ownership was involved in day-to-day operations, which is untrue,” she wrote in an email.

Finlayson said she and her staff have been making executive decisions for Peninsula Counseling. She also said she would cooperate with DOH officials with anticipation that an appeal would be approved and allow Peninsula Counseling to continue providing services.