Venture capital and methadone

postcard---heroin-lie

There must be a lot of money available if private equity firms are willing to expose themselves to this much risk:

At least five state legislatures are considering bills to tighten oversight of methadone clinics after allegations that take-home doses of the drug are contributing to illegal street sales, misuse and deaths.

Measures in West Virginia, Minnesota, Indiana, Pennsylvania and Maine, if passed, could increase costs or limit revenue for the nation’s largest methadone chains — both of them backed by private equity firms: CRC Health Corp. is owned by Boston-based Bain Capital Partners LLC; and Colonial Management Group LP is in the portfolio of Warwick Group Inc. of New Canaan, Connecticut.

Police, prosecutors and state regulators have linked clinics operated by CRC and Colonial to doses of the synthetic narcotic that were diverted into black-market sales — sometimes with deadly results.

Police, prosecutors and state regulators have linked clinics operated by CRC and Colonial to doses of the synthetic narcotic that were diverted into black-market sales — sometimes with deadly results.

The array of legislation reflects concerns that some for- profit clinics — which distribute the synthetic narcotic to help patients beat addictions to heroin and other opiates — don’t provide enough services, said Robert Lubran, director of pharmacologic therapies at the U.S. Substance Abuse and Mental Health Services Administration.

“We know for-profit providers often provide a lower level of service” than non-profit counterparts, Lubran said.

“It’s a question across the nation: Is it a cash cow these providers are running or are they really trying to help our citizens?” said Meshea Poore, a Democratic member of West Virginia’s House of Delegates.

1 Comment

Filed under Controversies, Harm Reduction, Policy, Treatment

One response to “Venture capital and methadone

  1. It always takes the one’s that are not doing the right things to screw it up for the ones that are doing the right things. This would be most unfortunate as it’s hard enough to get cost effective care for addicts to begin with. Dawn Farm runs one of the finest residential programs in the State of Michigan, And, at a great rate as well.