Methadone Clinics can be Very Profitable

Initially, most methadone clinics were operated by nonprofit organizations, frequently hospitals and  local or state governments.  Increasingly, private, for-profit businesses earn high profits operating methadone clinics.  Reported methadone clinic profits range from 16 to 50 percent of revenues.  CRC Health, the nation’s largest provider of methadone maintainence therapy, treats over 20,000 methadone patients daily, and reported daily profits per Methadone patient of $10.91 to $11.07. http://www.crchealth.com/press-releases-2004/040202-national-issues.asp

EITC, in Indiana, charges $11.50 per dose, cash only. When Townsend, a methadone authority in Kentucky, visited, the EITC center was collecting $16,100 a day for methadone, seven days a week. In Ohio, clinics pay $46 for 1,000 milligrams. “Do the math — that’s a big-time for-profit methadone program,” Townsend said.

A  Feb-21-2007 Mergerline listing of a New Mexico methadone clinic for sale advertises, At least half of the Revenues are Profit, with revenues of $1,200,000. The advertisement states, “ look at the profits – better than a bar!” Apparently Medicare and Medicaid patients are also profitable, since the advertisement states the clinic serves 480+ patients, with 280 patients on a cash basis, and 200 Federal or state funded. Three counselors  carry 95 % of the patient load, which means each counselor has a caseload of 152 methadone patients!  The advertisement explains, There are three owners, two are nurses and  involved with clinical services. The entire advertisement can be read at http://www.mergernetwork.com/businesses-for-sale/105585-Methadone-Rehabilitation-Medical-Clinic.htm

A January 04, 2004  article, by Laurence Hammack, in the Roanoke Times, reveals National Specialty Clinics projected a  Virginia methadone clinic, would earn profits of 16 percent, after taxes. Projected revenues were $492,580, for the first year, with first year profit estimated at $127,026 and after tax profits of $80,027. The entire article is at http://www.roanoke.com/roatimes/news/story160675.html

Merger Network listed two methadone clinics for sale in the Midwest, on August 8, 2007.  Profits reported were $400,000, on sales of $2,500,000, a profit of 16 percent.  The listing is viewable at, http://www.mergernetwork.com/businesses-for-sale/124800-Methadone-Clinics-for-Sale.htm

Many believe highly profitable for- profit methadone clinics create an unjustifiable conflict of interest, since they profit, from reducing counseling and medical treatment, while maintaining methadone dependency.  Numerous methadone patients complain methadone clinics do not provide adequate methadone detoxification, to methadone addicted patients wishing to decrease or eliminate their  methadone dependence.  Other methadone patients complain they were not provided adequate informed consent concerning methadone toxicity or side effects.  Some methadone clinic patients state methadone clinics failed to inform them that methadone is highly addictive and methadone withdrawal symptoms are severe.

A very frequent complaint, by methadone clinic patients, is the inadequacy of counseling and medical care, provided by methadone clinics.  Low pay, inadequate staffing levels, inadequately trained and experienced methadone counseling and medical staff, and high methadone clinic staff turnover impair patient care at many methadone clinics.  Inside the Methadone Clinic Industry: The Financial Exploitation of America’s Opiate Addicts, by Lisa Berry, , MCDC, CSAC describes her experiences working at four different methadone clinics.  One of the methadone clinics where she worked, suffered a 400 percent staff turnover, in one year!

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