SACRAMENTO – Outraged by reports of “patient brokering” and neighborhood turmoil, Sen. Pat Bates introduced legislation Wednesday to start addressing dangerous and deadly practices in California’s poorly-regulated addiction treatment industry.
“For more than 20 years, several bipartisan efforts to address the challenges surrounding the state’s drug rehab history have gone nowhere due to opposition from vested interests,” said Bates, R-Laguna Niguel.
“While I’m under no illusion that pursuing greater oversight will be any easier this year, doing nothing is not acceptable for constituents who have contacted me on this issue. The Southern California News Group’s thorough 2017 investigation into the industry makes it clear that reforms are needed.”
SCNG’s probe found that as opioid addiction has soared, unscrupulous rehab operators have rushed in to take advantage of mandatory mental health treatment coverage required by the Affordable Care Act. Broke and homeless heroin addicts are worth hundreds of thousands of dollars each in the form of insurance payments, and many are bought, sold and exploited in an underworld rife with kickbacks, drug use and fraud that can end in death.
Addicts around the country are enticed to California with offers of free travel, rent, cigarettes and even manicures, often landing in centers that would not be allowed to open elsewhere. California’s hands-off approach to regulating the industry makes it easy for almost anyone to open a treatment center and charge insurance companies hundreds of thousands of dollars per client, without being required to show evidence that their treatment helps rather than harms. The concentration of facilities is so dense the Los Angeles basin has been dubbed the “Rehab Riviera.”
“Creating substantive and positive change in the drug rehab industry will take time,” Bates said in the statement. “But as a former social worker who once worked in some of our state’s most economically deprived neighborhoods, I take inspiration from Winston Churchill’s mantra of ‘Never, never, never give up.’ And as long as I’m around, I won’t. Stay tuned.”
The bill, SB 902 is still a work-in-progress, she said, with language to be crafted with the help of those involved. She wants to improve patient well-being and increase public safety of neighborhoods hosting rehabs and sober living homes, she said, and aims to stop the industry’s bad actors, not those with strong records of helping people.
In 2016, the Senate Health Committee rejected her SB 1283 that would have allowed a city or county to craft health and safety standards specifically for sober living homes.
In November, a bipartisan group of the U.S. House of Representatives’ Energy and Commerce Committee asked California and five other states for information on allegations of patient brokering.
The parents of several young adults who have died in treatment centers have called on Gov. Jerry Brown to lead on this issue. Brown’s office declined to comment on Bates’ push for action.
“Our office does not typically weigh in on pending legislation,” said deputy press secretary Ali Bay by email. “If that changes in this case, I’ll let you know.”
Sen. John Moorlach, R-Costa Mesa, represents an area that’s home to one of the densest concentrations of rehabs in the state.
“I will be as supportive as I can be,” said Moorlach. “As with any industry, there are bad players. And they’re the ones that need to be addressed.”