The US House Committee has decided to take action regarding the accusations of ‘patient brokering’ leveled to Los Angeles Best Rehab facilities and other parts of the addiction treatment industry across the country. To that end, they have ordered eight treatment referral centers to disclose details regarding their business practices, which include, among other details, whether or not they receive payment for routing patients.
The letters were sent on a Tuesday, May 29, to companies in the treatment industry. They’re aimed at probing the allegations of what’s known as ‘patient brokering’, where vulnerable addicts are effectively sold off to the treatment centers willing to fork over the most cash for them, rather than brought to the proper facilities that can handle their treatment. The letter is also aimed at referral call centers and websites that don’t share their affiliations with treatment centers.
The eight chosen companies must disclose their data, providing details and documentation as of June 12, which include, among others, contracts with treatment providers like Los Angeles Best Rehab, how many patients they’ve referred, to where, and whether or not it helps sign up the patients for insurance, among other details.
The chosen companies are as follows:
- American Addiction Centers;
- Addiction No More (Texas);
- Addiction Recovery Now (Florida);
- Elite Rehab Placement (Michigan);
- Redwood Recovery Solutions (Florida);
- Solutions Recover Center (Florida);
- Treatment Management Company (Georgia), and;
- Intervention Allies (North Hollywood).
The reactions to the imperative was mixed. Michael Cartwright, American Addiction Centers’ CEO, expressed excitement about the inquiry, saying that he and his company support anything that looks to deal with the bad practices that plague the treatment industry. Others weren’t so pleased, like Dennis Callahan of Solutions Recovery Center in Florida, saying that the Congress means well, but they’re looking at the issue wrong.
Critics of the industry, meanwhile, welcomed the probe.
With regards to the probe, the congressional committee cites the Southern California News Group’s current investigation to what’s called the Rehab Riviera, among other probes. One of the common methods patient brokers generate leads is via call aggregators, with brokers being paid either per-head, or via a monthly treatment facility fees given upon hitting a quota.
The problem, congress says, is that it’s unclear if these brokers or call aggregators actually have the medical background needed to assist with the medical decisions made for potential patients.