In what could be a first-of-its-kind in California, licensed addiction treatment providers will be required to register annually with the Orange County Health Care Agency – and disclose webs of related businesses, such as urine and blood-testing labs, pharmacies, real-estate-holding companies that manage sober living homes.
For now, the new law — approved by the Board of Supervisors earlier this year, after an animated debate- will apply only to unincorporated areas of the county, where just some of the county’s 472 state-licensed addiction treatment programs are located. But the District Attorney’s office, which proposed the new law, wants to take it county-wide.
The publicly accessible, online registry intends to make rehab-related businesses lay bare their financial entanglements so consumers can spot potential conflicts of interest. All recovery- related enterprises doing business in Orange County will have to disclose their corporate affiliates — sober living homes, blood and urine-testing labs, pharmacies, real estate holding companies that manage rehab properties. Failing to register honestly and completely would be a misdemeanor carrying fines of up to $1,000 and jail time of up to six months.
The registry is being developed by the Orange County Health Care Agency, and it could eventually include hundreds of companies. Officials said the site will be ready for internal testing, followed by remediation of any issues.
The rehab registry is based on the model already in use, statewide, for operators of skilled nursing facilities. In this case, rehab operators must declare businesses in which they hold a 5% or more stake, thus allowing consumers trying to place their loved ones a clearer picture of financial ties.
The registry will include each substance abuse center’s name, business address and state license number. It will also list the identity of each owner, director, partner and officer; the identity of each affiliated business and facility; and the addresses, details of services provided and accepted methods of payment for each location.
It’s a novel, if not quite new, approach. In 2005, California empowered counties with the authority to create registries of addiction providers. To date, no other county has acted on it.
*”TruVida Recovery” is in full support of this newly proposed Registry. We will register once the site becomes live.
**Please credit the following article for this post: https://www.ocregister.com/2019/09/06/orange-county-taking-steps-to-crack-down-on-addiction-treatment-fraud/