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State suspends treatment provider’s license
The Washington Department of Health has again denied the application of a Pierce County substance use treatment provider to become a credentialed behavioral health agency.
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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. A voicemail left on the Peninsula Counseling’s general line and an email from Gig Harbor Now both went unanswered Thursday.
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 Rainier 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.
