After months of pressing the issue, Nye County is suddenly no longer in such a hurry to sell off its shuttered Pahrump Medical Center. Not to the highest bidder, and not to embattled Silver State Health Services and its partner Freedom Medical Group.

With little discussion Tuesday, the Nye County Commission decided to pull the agenda item to discuss and deliberate over the bids for the county-owned property at 1501 and 1503 Calvada Blvd. After months of being pressed by Commissioner Leo Blundo to sell the building, the near-silence on the subject speaks volumes.

Following the meeting, Nye County Manager Tim Sutton kept his comments brief.

“After consultation with the district attorney’s office, it was determined that there were irregularities in our auction procedures,” Sutton said. “So, therefore, we won’t be moving forward with the auction at this time.”

All registered bidders will have their deposits refunded, Sutton added, noting the item will be brought forward on a future agenda possibly early next year.

That might not be enough time to gather facts from Blundo’s efforts to push his friends at Silver State Health Services and Freedom Medical Group to the front of the line of those interested in obtaining the medical building.

After the meeting, the usually outspoken commissioner took a more balanced tone, telling Pahrump’s KPVM-TV that the decision to pull the agenda item was made out of an abundance of caution and due diligence, which is refreshing considering the speed with which the board appeared to be moving to sell the building to scandalized Silver State.

“One of my objectives is to get that (property) into the hands of medical providers to be able to bring more medical services to service the good people here in Nye County,” Blundo said. “However that is achieved, the end goal is I want more medical services. The people deserve it.”

If that’s the case, there’s still some due diligence left to do on Silver State Health Services.

The medical not-for-profit appeared to be the odds-on favorite until recent revelations about its management history, which include luxury automobiles being lavished on managers and the, the specter of millions in Medicaid overbilling, and the suspicious purchase and attempted bankruptcy of a Desert Inn Road mansion once owned by the late Nevada casino titan William Bennett.

In February, Silver State was awarded a $4 million federal grant to support mental health services. The status of that grant is clouded by an ongoing investigation by the US Department of Health and Human Services (HHS), which appears focused on the actions of one of the nonprofit’s managing members, Rick Saga, who is one of the mansion’s owners along with current Silver State CEO Mark Miyaoka.

This week, multiple sources with knowledge of Silver State’s inner workings confirmed they have spoken with an HHS investigator, the FBI, and the state attorney general’s office. Saga’s attorney Ogonna Brown declined to comment on the status of the HHS investigation. 

Although the commissioner has denied that his wife, Assembly candidate and No Mask Nevada PAC founder Melissa Blundo, profited from her role as “Regional Director, Nye County” at Silver State, her name is printed on a voided check dated Feb. 12 from its partner Freedom Medical Group for $1,985.38. Sources report the Blundos were visitors to the Saga’s mansion.

This month, the Silver State board voted to leverage the equity in its property at 2965 S. Jones to meet a $200,000 payroll deficit. In the meeting, according to a recording, Miyaoka expressed confidence that the hamstrung federal grant would be reinstated. Miyaoka blamed the shortfall on the nonprofit’s previous officials, two of whom managed to justify the purchase of two Teslas for their personal use without a vote of the board.

Whether current management is paying the price for the failings of previous executives remains in much dispute.

On Nov. 18, a civil suit was filed in Clark County District Court on behalf of former Silver State CEO Roosevelt Daymon, Jr., and his son, Roosevelt Daymon III, against the not-for-profit, Saga, Steven Lai and Francisco Moreno. The suit alleges wrongful termination and breach of contract against Daymon Jr., and assault, battery and false imprisonment against Daymon III. In the complaint, which has not yet been served, Daymon attorney Trevor Hatfield alleges Daymon Jr. “was terminated for his knowledge of, and objections to, and reporting of, the misdirection of the assets of Silver State to fund improper investments and self-dealing.”

At this rate, “improper investments and self-dealing” at Silver State Health Services may be only the beginning.

John L. Smith is an author and longtime columnist. He was born in Henderson and his family’s Nevada roots go back to 1881. His stories have appeared in Time, Readers Digest, The Daily Beast, Reuters, Ruralite and Desert Companion, among others. He also offers weekly commentary on Nevada Public Radio station KNPR.