SOUTH JERSEY (KYW Newsradio) — New Jersey’s addiction rehabilitation industry has a serious fraud and corruption problem, according to a new state report.
Fraud, corruption and misconduct have led to clients being manipulated and, in some cases, hindered their efforts to get sober, according to the New Jersey State Commission of Investigation.
The report found wrongdoing at every stage of the recovery process — even from the very first encounter a person has with rehabilitation reps.
“These folks will show up at an overdose victim’s bedside and offer help in navigating the recovery process. They will connect them with certain treatment centers. But what we found is some of these individuals were also getting paid by certain treatment centers for sending clients their way,” said spokesperson Kathy Hennessy Riley.
Officials say detailed schemes ultimately led some rehab business owners to improperly fund their own lavish lifestyles rather than pay for patient services or rent at sober-living recovery homes.
The commission discovered a number of other schemes and frauds, such as double billing or bills for services that were not provided. The remedy, Riley said, is an overhaul of the system.
“We looked at the entire industry from end to end and we found troubling abuses and corruption existing at every juncture along the way,” she added.
The commission recommends strengthening patient brokering laws and improving licensing and inspection standards for the industry, in which businesses must be expected to operate with integrity, reliability and accountability.