Valid Resource: A Solution to the American Addiction Crisis

Kreed Drug Rehab Marketing

Alcohol and drug rehab is a $35 billion dollar a year industry in the United States. There are currently more than one thousand drug treatment centers operating in the greater Los Angeles area alone.  While many of these facilities have sincere intentions of helping addicts recover from their addictions, others have taken advantage of this vulnerable group of people in an effort to produce massive profits. So-called rehab centers compete with legitimate ones for their share of this multi-billion dollar industry. These “bad actors” often take advantage of lax regulations, (which can vary from state to state, city to city) by sucking up as much insurance money as they can from a patient and then kicking them out in the streets as soon as their insurance money runs out. This happens all too often in America, while the people who need rehab aren’t receiving the adequate treatment they deserve.

With literally thousands of options for treatment centers in the US, many have dubbed the industry: “the wild, wild, West” due to the lack of regulatory oversight.

Today, virtually anything goes and nobody knows if they’re going to a reputable treatment center or not.  Much of the greed in the addiction industry was born out of the Affordable Care Act, more commonly referred to as Obamacare. This law mandated that rehab for substance abuse disorder must be covered by health care plans as one of the 10 essential health benefits. Although this was well intentioned, giving more people access to care they need, it also opened up the door for unethical operators to use addicts to bilk insurance companies and the American public out of hundreds of millions of dollars.

Nefarious treatment centers have now sprung up all across the nation. Some operate out of old, run-down hotels, others in the basements of private residences. All promising your family members or loved ones who are struggling with addiction a cure to their potentially deadly disease. Once you give them your insurance information, they will charge daily drug-screening fees in excess of $1,200 per day. Many of these ‘treatment centers’ also own the drug testing facilities, or have kickback incentives in place to pilfer more money into their pockets. While someone stays in treatment or a sober house, they don’t know their insurance is being billed exorbitant amounts for tests and procedures that never even happen. It is tantamount to insurance fraud at its worst and for many struggling addicts it means their last chance for recovery.

Once the insurance coverage is dried up, the patient is kicked out into the streets, having received very little, to no treatment at all.


Once the insurance coverage is dried up, the patient is kicked out into the streets, having received very little, to no treatment at all.


With the potential for abuse of the system, coupled with an obscene lack of regulation and oversight, rehab centers use TV and internet ads to lure people into their care. Many of the ads you see on TV today are from referral agencies and third party recruiters. When they get phone calls from the ads, they will sell the person as a “lead” to any rehab center that pays for it. These leads are typically not placed into the facility best suited for the individual needs of the patient. In California, some rehab centers lure people from out of state into their facility offering them a “scholarship” for rehab. They rarely tell the patient this means they are being signed up for insurance through Covered California, a program which allows anyone physically in the state to sign up for insurance coverage on the day they arrive.

Another major problem in the modern rehab industry is what is known as the “Florida shuffle”.

Many people call Palm Beach County in Florida the rehab capital of the United States. While there most certainly are honest, effective treatment centers operating in the area, a lot of sober homes have opened up luring addicts through their doors with cash incentives, free rent and free cigarettes. These companies make so much money from each patient’s insurance, that they literally pay you to come live at their facility.

Many of these rehab facilities pay “body brokers” to actively hunt for addicts on the streets and enroll them in their treatment program. The problem is that they are not getting help from a legitimate treatment facility. They are just homes with beds for addicts to live in while the company fraudulently charges their insurance for services the patient never receives. Drug use is not only ignored, but sometimes patients are encouraged to relapse so they can enroll in another treatment program and bill their insurance even further. People are shuffled between different treatment facilities until their insurance coverage is maxed out then kicked to the curb without ever receiving any help for their addiction. The owners of these enterprises make millions of dollars a year, while many of their clientele overdose and die throughout the process.

With the current opioid crisis driving demand for rehab and the increase in access available to those with insurance has created its own crisis, one of limited oversight. Federal and state regulating agencies simply have not caught up to the uptake in the addiction treatment industry and far too many have devised schemes to take advantage of this vulnerable, growing population.

For those of us who are running quality, legitimate organizations, it has become increasingly difficult to separate ourselves from these criminal enterprises. While only 29 states have attempted to pass legislative reforms, including licensure requirements, and prohibition of patient brokering, loopholes still exist to this day. Sadly, the most abhorrent predators will find ways around these laws until they are stopped.

In a system where a single patient can generate hundreds of thousands of dollars in insurance claims for addiction treatment, the potential and incentive for corrupt practices will persist.

That’s where Valid Resource comes in. We are fully committed to getting the right treatment to the patients who need it the most. We strive to bring ethics back into the substance abuse treatment industry.

As drug overdoses claimed more than 72,000 American lives in 2017, the time to get serious about addiction and treatment validity is now.

We believe that verified, licensed treatment providers with a proven track record have the ability offer the best forms of care. We follow the science behind addiction treatment and promote an evidence-based approach to patient care. Medication Assisted Treatments (MAT) such as buprenorphine for opioid withdrawals are the most effective form of treatment for opioid dependency. As congress has passed legislation promoting greater access to treatment and rehabilitation services for addicts, there is still a major problem with accountability and corruption within the substance abuse treatment industry.

Through Valid Resource, we strive to promote treatment programs that have higher success rates. Numerous studies have shown medication-assisted treatment programs work more effectively than other approaches to opioid abuse.

Addiction is a disease, and like most medical conditions, it can be treated and cured with the correct approach. There is no one-size-fits-all approach for addiction treatment. We strive to treat each patient individually with his or her unique needs in mind. We work with medical professionals to formulate an approach, which can offer the best results on an individualized basis. Hopefully with these ethical standards in place, we can even help save some lives.


Marketing Expertise Exclusively for the Drug and Alcohol Addiction Treatment Industry.

Call now to see how we can help you. 1-323-524-0528


Marketing Expertise Exclusively for the Drug and Alcohol Addiction Treatment Industry.

Call now to see how we can help you.