CCHR Calls for More Oversight after Recent Addiction Treatment Center Closures

Mar 13, 2023

With $42 billion invested in the addiction treatment industry, CCHR says the closure of 16 facilities warrants more government oversight and stronger penalties for fraud.

Los Angeles, United States - March 13, 2023 /PressCable/ —

After the closures of 16 addiction treatment centers in the wake of government healthcare fraud investigations, mental health industry watchdog, Citizens Commission on Human Rights (CCHR) International calls for more oversight with stronger penalties for fraud and for endangering patients.[1] The addiction treatment industry is rife with what CCHR calls “psych drug rehab fraud.” The market increased from about $35 billion in 2015 to $42 billion in 2020 and the fraud schemes abusing this have increased exponentially—federal legislation has had the effect of flooding the addiction treatment industry with more patients and more money.[2]

Fraud schemes have involved billing for services not delivered for the time specified—for example, a 45-minute counseling session sometimes only lasted five or ten minutes, according to a report from the U.S. Department of Justice.

A shuttered Milwaukee addiction center allegedly ordered refills of naltrexone, a psychiatric drug used to treat addiction, in the names of former—not current—patients, while also selling to patients for $1,000.

The Food and Drug Administration (FDA) advises that patients taking naltrexone, “be warned of the risk of hepatic [liver] injury.”[3] Other potential side effects include depression and suicidal ideation or attempts, anxiety, panic attack, nervousness, fatigue, frequent headaches, and so-called “posttraumatic stress disorder” and “obsessive compulsive disorder.”[4] In other words, the drug can cause “psychiatric conditions,” requiring additional treatment.

Addiction psychiatrists claim they can help prevent overdose deaths by expanding their practices to assess for and treat substance use disorder. In 2020, the National Drug Control Budget sought $34.6 billion for drug control, including prevention, and treatment. In 2022, some $10.7 billion was given to the federal Department of Health and Human Services that included funding to expand access to substance use prevention, treatment, harm reduction, and recovery support services.

CCHR says Americans should expect a good return for taxpayer dollars spent on this—at least a reduction in drug abuse. However, this has not been forthcoming.

· According to the Substance Abuse and Mental Health Services Administration, more than 18 million people ages 12 and older have used prescription drugs for nonmedical reasons in the previous year. That’s more than 6% of the U.S. population.[5]

· Some 614,000 teens aged 12-17 admit to using a stimulant prescribed to treat Attention Deficit Hyperactivity Disorder for nonmedical reasons. Abuse of the drug leads to almost 1,500 emergency room visits every year, and serious side effects include stroke.[6]

· The Centers for Disease Control and Prevention reports more than 106,000 persons died from drug-involved overdose in 2021. Of these, 32,537 involved stimulants, including cocaine or psychostimulants with abuse potential—up 5,848% from 547 in 1999.[7]

Former Congressman Ronnie Shows wrote about “eliminating wasteful spending” and Medicare fraud, stating: “Sadly, when it comes to healthcare fraud, mental health and drug treatment programs are some of the worst actors.”[8]

Add to this a New York Attorney General’s comment when sentencing a psychiatrist to 7½ years in jail for indiscriminately dispensing psychiatric drugs: “There are few things more pathetic than a crooked doctor, particularly one who uses his office like a drug dealership.”

CCHR maintains a psychcrime database of such cases.

As for their expertise in treating addiction, psychiatrists are among the top three healthcare professionals that have higher rates of drug misuse.

Psychiatrists’ role in the opioid epidemic is also telling. According to a study published in the Journal of the American Board of Family Medicine, adults diagnosed with a “mental illness” receive more than 50% of the 115 million opioid prescriptions in the U.S. annually. Nearly 19% of Americans labeled with a mental health disorder use prescription opioids compared to only 5% of those without a mental health condition.[9]

Much of the fraud occurs because of the Diagnostic and Statistical Manual for Mental Disorders (DSM), known as psychiatry’s “billing bible.” DSM lists more than 50 billing codes for substance abuse disorders alone. According to a study in PLoS Medicine, 70% of the psychiatrists involved in determining mental disorders to be included in DSM-5 were financially affiliated with drug companies.[10]

Dr. Tana Dineen, Ph.D., with over 30 years of experience as a psychologist, states: “It seems that, whatever the results, addiction treatment,” in the mental health industry’s hands, “is identifiably a business that ignores its failures. In fact, its failures lead to more business. Its technology, based on continued recovering, presumes relapses. Recidivism is used as an argument for further funding….”

CCHR encourages people to report fraud and abuse in the mental health industry.

Read the full article here.

[1] Hayley DeSilva, “15 addiction treatment centers close following CEO fraud charges,” Becker’s Behavioral Health, 3 Mar. 2023, www.beckersbehavioralhealth.com/behavioral-health-addiction-treatment/15-addiction-treatment-centers-close-following-ceo-fraud-charges.html

[2] Dan Munro, “Inside The $35 Billion Addiction Treatment Industry,” Forbes, 15 Apr. 2015, www.forbes.com/sites/danmunro/2015/04/27/inside-the-35-billion-addiction-treatment-industry/?sh=6c948dc617dc; John LaRosa, “$42 Billion U.S. Addiction Rehab Industry Poised for Growth, and Challenges,” Market Research.com, 5 Feb. 2020blog.marketresearch.com/42-billion-u.s.-addiction-rehab-industry-poised-for-growth-and-challenges; Zachary Rothenberg, “Trends in Combating Fraud and Abuse in Substance Use Disorder Treatment,” Journal of Health Care Compliance, Sept.-Oct. 2018, www.nelsonhardiman.com/wp-content/uploads/2018/09/HCCJ_0910_18_Rothenberg.pdf

[3] www.cchrint.org/2017/01/31/risky-pills-for-a-weighty-problem/, citing: Hubert, Susannah K., MPH. “NDA 021897, Vivitrol® (naltrexone for Extended-release Injectable Suspension).” Letter to Nancie A. Zecco, Senior Regulatory Associate. 04 Nov 2010

[4] “Naltrexone Side Effects,” Drug.com, www.drugs.com/sfx/naltrexone-side-effects.html; www.psychiatryadvisor.com/home/conference-highlights/apa-2019/naltrexone-xr-may-be-associated-with-dysphoria-suicide-ideation/

[5] www.webmd.com/mental-health/addiction/abuse-of-prescription-drugs; www.samhsa.gov/data/report/2017-nsduh-detailed-tables

[6] drugabusestatistics.org/

[7] nida.nih.gov/research-topics/trends-statistics/overdose-death-rates

[8] www.cchrint.org/2017/10/03/largest-psychiatric-hospital-chain-patient-sexual-assault-abuse-violence/; Ronnie Shows, “Dear GOP: Eliminate Waste And Fraud To Help Pay For Healthcare Bill,” The Daily Caller, 29 June 2017, dailycaller.com/2017/06/29/dear-gop-eliminate-waste-and-fraud-to-help-pay-for-healthcare-bill/

[9] www.cchrint.org/2019/07/29/psychiatric-industry-and-behavioral-centers-profit-from-opioid-crisis/; khn.org/news/patients-with-mental-disorders-get-half-of-all-opioid-prescriptions/

[10] Katie Moisse, “DSM-5 Criticized for Financial Conflicts of Interest,” ABC News, 13 Mar. 2012, abcnews.go.com/Health/MindMoodNews/dsm-fire-financial-conflicts/story?id=15909673

Contact Info:
Name: Amber Rauscher
Email: Send Email
Organization: Citizens Commission on Human Rights International
Address: 6616 Sunset Boulevard, Los Angeles, California 90028, United States
Phone: +1-323-467-4242
Website: https://www.cchrint.org

Source: PressCable

Release ID: 89091813

If you detect any issues, problems, or errors in this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 8 hours.

More News

Gillingham waiting on McManus fitness after Ireland outing
Oct 8, 2026
Gillingham waiting on McManus fitness after Ireland outing

Gillingham will need to check on the status of defender Conor McManus before deciding whether he will travel this weekend.

Gillingham youngster’s frustrating start explained by Ainsworth
Oct 8, 2026
Gillingham youngster’s frustrating start explained by Ainsworth

Gillingham are continuing to manage an injury that has restricted Sam Tabares’ start to life at Priestfield.

Gareth Ainsworth makes bold Gillingham claim
Oct 8, 2026
Gareth Ainsworth makes bold Gillingham claim

Manager Gareth Ainsworth believes his Gillingham team are the real deal this season.

Football fixtures and results
Oct 7, 2026
Football fixtures and results

Catch up with all the week’s football fixtures and results here.

Gillingham’s Conor McManus scores as Ireland beat England
Oct 7, 2026
Gillingham’s Conor McManus scores as Ireland beat England

Gillingham defender Conor McManus scored for Republic of Ireland under-21s in a win over England.

Gillingham midfielder’s moving gesture as nephew faces huge fight
Oct 7, 2026
Gillingham midfielder’s moving gesture as nephew faces huge fight

Gillingham midfielder Armani Little made his return from injury at the weekend with more than just football on his mind.

Debut delight for Ladapo as Chatham Town dump Gillingham out of cup
Oct 6, 2026
Debut delight for Ladapo as Chatham Town dump Gillingham out of cup

A sellout crowd at Chatham Town saw Gillingham’s young side well beaten in the Kent Senior Cup second-round tie.

Gillingham boss reveals plans for Chatham cup clash
Oct 6, 2026
Gillingham boss reveals plans for Chatham cup clash

Gillingham will turn to their best young players for their midweek Kent Senior Cup game at Chatham.

‘It’s definitely a tactic we will keep going with’
Oct 6, 2026
‘It’s definitely a tactic we will keep going with’

Coach Adam Hollioake reckons Kent have found a formula they can stick with in terms of preparing home surfaces as they return to top-flight cricket.

KentOnline’s team of the week
Oct 6, 2026
KentOnline’s team of the week

Find out who’s in KentOnline’s team of the week and vote for your star man.

Gillingham duo recognised after September surge
Oct 6, 2026
Gillingham duo recognised after September surge

Gillingham manager Gareth Ainsworth and summer signing James Brophy have both been nominated for a prestigious monthly award.

FA Cup draw
Oct 5, 2026
FA Cup draw

The draw has been made for the fourth qualifying round of the FA Cup.

YOUR NEWS, OUR NETWORK.

Do you have Great News you want to tell the world?

Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.

Daily Sports Global

Daily Sports Global, your guide to the best sports news on the Internet. Access to the world’s biggest sports events right here even if you’re not physically there.

Newsletter