By Dr. Margie Donlon and Luanne Peterpaul

 

The release last month of a State Commission of Investigation report on fraud, ethical misconduct and corruption in the addiction rehabilitation industry is cause for dismay for residents with substance abuse disorder, as well as taxpayers.

The SCI’s in depth investigation and its report, “THE DIRTY BUSINESS BEHIND GETTING CLEAN,” revealed unchecked abuses by certain so-called professionals, owners and operators of addiction-related businesses. We know the vast majority of people operating substance abuse treatment facilities are dedicated professionals doing whatever they can to help their patients succeed in rehabilitation. Some, however, routinely engaged in corrupt practices that were more about making profits and less about getting their clients clean and sober, according to the SCI. 

New Jersey has spent large amounts of government funds – with far more earmarked in future years – to battle addiction and the ongoing opioid epidemic. The SCI found unethical conduct and wrongdoing at every stage of the recovery process, sometimes starting as early as an overdose victim’s first encounter with an addiction professional at their hospital bedside or during an online search for treatment.

Over the past several years, New Jersey has spent unprecedented amounts of government funds to battle addiction and the ongoing opioid epidemic. Programs providing treatment and recovery services are lifelines to those grappling with crippling addictions to painkillers and other substances. The commission found that specific laws and the state’s regulation of some elements of the treatment industry have not kept pace with its evolution, leaving the government unable to provide the necessary oversight of the industry.

As members of the Assembly Health Committee (Assemblywoman Donlon) and the Assembly Aging & Human Services Committee (Assemblywoman Peterpaul), we have sponsored or co-sponsored a number of the bills that are part of an Assembly legislative package to address these deficiencies. 

One of our bills toughens licensure requirements for residential substance use disorders treatment facilities or programs. Under the bill, the Department of Health (DOH) would require an applicant for a license to submit a financial audit conducted by an DOH-appointed independent, certified public accountant. The DOH would deny the license of any applicant whose audit reveals improper or questionable business practices or financial activities. Applicants for licenses also must complete a criminal background check and be fingerprinted. A conviction involving dishonesty or fraud would disqualify the applicant. The legislation also calls for periodic, unannounced inspections of residential treatment facilities.

Another of our bills requires providers of substance or alcohol use disorder treatment and services to be assessed for conflicts of interest prior to receiving state funds, a state license or certification. The requirement would apply to any department or other state entity, county or municipality that pays providers for treatment services with state funds. If the conflict of interest has been remedied, the government entity would immediately distribute any state funds due the provider. 

We also sponsored bills requiring the Department of Human Services (DHS) to establish a system to ensure that state funds for support services for General Assistance beneficiaries cease when beneficiaries are discharged from a program or no longer receiving services. The legislation also requires a substance abuse service provider to repay any funding received after a beneficiary is discharged or no longer receiving its services.

Our other bills would clarify DHS’s authority to regulate sober living homes and halfway houses as residential substance abuse aftercare facilities. The legislation would increase the Department of Community Affairs’ (DCA) role in regulating boarding houses, including cooperative sober living and increase the maximum penalty for licensing violations for a rooming or boarding house. The bills would require the DCA to maintain a list of licensed co-op sober living homes, and establish reporting requirements. 

We are trying to respond as quickly as possible to assist people with substance abuse disorder. As taxpayers, we all pay the cost of fraud and corruption that the SCI identified. Along with our LD11 partner, Senator Vin Gopal, we are working to end the practices that hurt our vulnerable residents and slow their recovery and return to a normal, productive life.