After FBI raid on Youngstown schools and QUICKmed, we take a look at the contracts between the two

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Multiple FBI raids took place in the Valley on Wednesday, including at QUICKmed offices in Youngstown and CEO Lena Esmail’s home. Also questioned by the FBI were multiple Youngstown City School administrators, including superintendent Jeremy Batchelor.

Sources familiar with the FBI investigation told 21 News the FBI was seeking information about contracts the district had entered into with the businesses, including some owned by Esmail, going back as far as 2021. At the time, the district was being run by CEO Justin Jennings, who had control over the academically struggling district, which had been under state control since 2015.

While it is important to note, we don't know specifically what the Feds are looking into involving these contracts or if there is any evidence of criminal activity. 

What we do know is how the district spent money with QUICKmed, which totaled more than $5 million over the last three years. The district provided 21 News copies of its contracts with QUICKmed. Most of these contract services were paid from the $78 million of federally provided funds the district received to help schools recover during the pandemic.

Jennings, who started with the district as CEO in 2019, had total control over the contracts he entered into without the need to get the school board's approval, and he wasn't required to inform them of his decisions either. By July 2022, Jennings was then named superintendent and the board retained its supervision over the district.

Jennings resigned in June of 2023 after widespread attention following a 21 News Watch Dog Report investigation that revealed mismanaged funds of Federal funds, including $5 million for a failed citywide wi-fi system, more than $3.6 million spent purchasing COVID-19 tests for students during a time when they were offered for free and more than $385,000 for a paperless payroll plan that was not compatible with the districts computer system.

During Jennings's tenure, he entered multiple contracts with QUICKmed for a wide range of services, including healthcare facilities inside three of the district’s school buildings, P. Ross Berry, McGuffey, East, and Chaney. The district also laid off three full-time employees at the Choffin Career and Technical Center and then entered into a contract for its dental services to use QUICKmed employees to run the program.

The district also invested in two healthcare RVs that would provide portable dental, hearing, and eye care services to students throughout the district. The Audiology/Ophthalmology cost the district $1,159,030.45, while the Dental RV was $999,881.88.

21 News has looked into the QUICKMed contracts, what each covers, and the cost. Here is what we found:

CONTRACTS WITH QUICKMED UNDER JENNINGS

Note: all contracts have a line that automatically renews for one year for the initial term of each contract unless notified in advance of the cancellation.

• Nov. 1, 2021: 5-year contract for Services for YCS staff to use the YOUCare/QUICKmed Schools Clinics at East and Chaney, with the contract stating “Company shall provide Contractors (QuickMed Urgent Care) one thousand five hundred dollars ($11,000) monthly…”
• Nov. 1, 2022: Three-year Clinical Facility Use Agreement. Work with the Adult Education program at Choffin for dental. No cost was listed in the contract provided.
• Nov. 23, 2021: Ophthalmology Program. YCSD paid a one-time fee of $662,500 for the setup of the initial program, with a minimum commitment of three years allowing QUICKMed to bill insurance for eye exams and eyeglasses. All without insurance would be seen at no charge. Approved by Jennings on Nov. 19, 2021.
• February 1, 2022: 10-year Mental Health Care Services contract. Cost: One-time cost of $462,500. District to reimburse QuickMed for startup costs, hiring of staff, credentialing costs and administrative development of a system-wide operation. Signed by Jennings on Oct. 14, 2021. Option to terminate after the second year.
• Aug. 27, 2021: Covid Crisis Plan. Cost: $1,780,000, including staffing and supplies. COVID clinics were to convert to permanent YOUCare clinics by March 22 at no additional cost to the district. Agreed to by Jennings.
• September 1, 2022: 1-year Dental Care Services. Cost: $900,000 after the first year, and may bill Medicaid or insurance. Services are to be offered to the school in an RV purchased by the school. Operated for two years at the district's expense; after Sept. 1, 2024, QuickMed will bill insurance. The contract was signed by Jennings on September 18, 2021.
• Sept. 1, 2022: Two-year Applied Behavior Analysis Services. Cost: $740,000 total for two years. Entered into by Jennings on May 10, 2022.
• June 1, 2022 through July 31, 2025: Athletic Training Services. Provides exclusive training services to the school with four trainers, which was at the same cost as the amended contract below, $440,000.
• June 1, 2023 through May 31, 2024: One-year contract for Athletic Training Services (amended), for four trainers. Cost: $440,000. No reason was given for the overlapping dates with the previous contract, and 21 News has reached out to the treasurer’s office for clarification but did not receive an answer before
• The district also leased space to QUICKMed for its facilities inside P. Ross Berry, McGuffey East, and Chaney for $1 per year. 

CONTRACTS WITH QUICKMED UNDER BATCHELOR

• Nov. 1, 2023: QUICKmed permanent, full-time nurse for the school year 2023-24. Cost: $29,400. Approved by district treasurer Bryan Schiraldi on Nov. 17, 2023.
• Nov. 1, 2023: Two LPNs to provide support for YSCD Clinics, at a total cost of $27,900.

OTHER EXPENDITURES BY THE DISTRICT WITH QUICKMED

The district also spent other funds with QUICKMed, including:

• May 21, 2021: 5,500 promotion totes, 5,500 folders and 5,500 care kits. $36,673
• September 13, 2021: 1,754 promo totes, $38,427
• July 1, 2023: Open purchase order for QuickMed, cost: $132,000
• Aug. 1, 2023: Vaccinations and testing for students, $5,050.

The district, in a press release stating it is cooperating with the authorities, and QUICKmed CEO Lena Esmail, issued a statement Wednesday in part saying, "QUICKmed Urgent Care continues to deliver service at all its locations following its cooperation this morning with federal agents.”

Today, the district has a little over $2 million of its Federal ESSER funds left. With these renewable contracts comes the question of how the district plans to pay for the services once the federally provided funds are gone after this year.

The recently released audit of the district showed it was projected to have a $16 million deficit by 2028.