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A Treatment Titan Moves to the Next Level
Written by Ted Jackson   
July 2008
Bill O'Donnell says he initially had no thought of selling Sierra Tucson, despite having recently sold a majority stake in its sister company, Miraval spa. "But as things moved forward with CRC it became apparent that a deal would probably get done, so I resolved to let go," he said. In the end O'Donnell did let go, selling the institution he founded over 20 years ago for what is probably the highest price ever paid for a single treatment center, $130 million.
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The Wagering Boom
Written by Ted Jackson   
March 2008

The Wagering BoomIn the early 1990s, Rimrock Foundation was visited by producers and camera crews from the popular CBS news program 48 Hours. It was a time when legalized wagering was beginning to experience explosive growth, due to largely to tribal expansions into the casino business, and 48 Hours had come to Rimrock’s facility in Billings, Montana, to examine some of the fallout from gambling’s rapid spread. "They spent about a week here, and they were fascinated by what they found out," says Rimrock CEO David Cunningham, adding that it was clear to the 48 Hours journalists when they left that there was indeed a very dark underbelly to wagering’s blistering pace of expansion throughout America.

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NATION'S LEADING TRAUMA AND ADDICTIONS CENTER
Written by Ted Jackson   
November 2007

Chaz Cabela ARC CEONot too long ago, Chaz Cabela came across a case, a female desperately in need of help, where he could not refuse admission, even though the woman did not have the means to pay for care. A wealthy scion of a catalogue and retailing family, Cabela has sharply boosted the charity care offered at South Florida-based Advanced Recovery Center, ARC, since he bought the cen- ter two years ago. “If there was ever a case of desperate need, this was it,” says Cabela, who is of that unique and ubiquitous type of treatment industry entrepreneur, the type who goes to treatment, gets clean, and then decides to buy or start a treatment center...

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Canada’s Clear Haven
Written by Ted Jackson   
April 2007

img 1 Not too long ago, a client arrived at Clear Haven Center that presented the center with a unique set of challenges.

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South Florida: A Booming Market
Written by Ted Jackson   
February 2007

Back in the 1970s, Don Mullaney was leading a colorful double existence, by day working for Rensselaer County in upstate New York teaching prevention in the schools, while partying very hardy at night. Fast forward a few decades, and Mullaney is one of the very top players in the booming South Florida market for private addiction treatment services. As the founder of Behavioral Health of the Palm Beaches, Mullaney was a pioneer of the Florida Model of care, a cross between outpatient and residential developed in the 1990s that helped lead the treatment industry out of the darkest days of the managed care cutbacks. 

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The Interventions Boom: Everybody Wants to Be an Interventionist
Written by Ted Jackson   
December 2006

About 20 years ago, Chris Crosby, now CEO of thriving South Florida-based Watershed Treatment Programs, was working at Boca Ratonbased Anon Anew as an interventionist. Crosby was one of many such interventionists throughout the nation who then mostly worked as quasi in-house marketing agents at treatment centers around the country.

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America’s Methadone King
Written by Ted Jackson   
October 2006

img 1In 2002, Barry Karlin was approached with a deal to buy a group of methadone clinics. Since then he’s been on an opiate clinic acquisition tear, with CRC Health Corporation emerging as our nation’s biggest methadone dispenser, and Karlin as...

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Treating the Middle Class
Written by John Worley   
October 2006

Almost forty years ago, doctors in tiny Norton, KS - a mostly agricultural enclave in the Northwestern part of the state - began to notice that an alarmingly large number of admissions to the local emergency room seemed to have a common substance abuse thread.

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New Players Target Busy Addiction IT Market
Written by Ted Jackson   
September 2006

Several years ago, Caron Foundation’s information technology director Bob Wagner found himself at a fork in the road, needing a new IT system. For years, Caron - which in the 1990s effectuated a remarkable turnaround under CEO Doug Tieman’s new leadership - had used Substance Abuse Treatment Information System, SATIS, Betty Ford’s in-house system that the renowned treatment center had decided to commercialize in the 1990s.

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High-End Keeps On Expanding
Written by Ted Jackson   
August 2006
High atop a Nevada Casino, Perry Litchfield stood in a lavish, gaudy penthouse. A bronze statuette in hand, he was about throw it through the window and leap to his death, joining many others who have similarly ended their struggles with alcoholism. Litchfield did not jump on that day four years ago, held back as he was by thoughts of his beloved son, Charlie. Making a far better decision, Litchfield instead went to Sierra Tucson, the last, finally, in a string of high- end treatment visits for the serial entrepreneur. Successful in a number of business ventures - law, mediation and real estate - Litchfield over the last few years has turned his attention to opening a high-end Northern California center in tony Marin County, just across the bay from San Francisco.
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Addiction Industry Lobbying: Centers are More Active, Getting Results
Written by Ted Jackson   
July 2006

When you talk to Chris Crosby about managed care, it quickly becomes apparent that you're talking to a man on a mission: "The whole way managed care approaches addiction treatment is a travesty," says Crosby, who, as CEO of South Florida-based Watershed Treatment Programs, runs one of the nation's largest and fastest growing treatment operations. "The payors wouldn't dream of denying coverage to someone with diabetes who has, yet again, ignored the advice of doctors about diet and exercise and wound up, yet again, in the hospital. But if an alcoholic seeks help repeatedly, that's somehow less worthy? The situation our industry finds itself in with respect to the payors is absurd and wrong, and it needs to change."

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The Physiological Frontier
Written by Ted Jackson   
June 2006

In 2002, The World Health Organization identified alcoholism as the third leading risk to health in the developed world, and the leading risk in low mortality developing countries like Russia. When WHO data on tobacco and illicit drugs are thrown into the mix, substance abuse emerges as probably the leading cause of death and disability worldwide, substantially beating out other single causes like high cholesterol, unsafe sex, obesity and diet deficiencies.

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Adolescent Treatment Resurgent
Written by John Worley   
May 2006

In the late 1990s, the family that owned diversified medical and behavioral health services provider College Health Enterprises made a fateful move, resolving that they would sell the youth division of the company. Hindsight is golden, but maybe they would have decided differently had they known that the unit, now known as Aspen Education Group, would become one of nation’s largest and fastest growing private providers of therapeutic services to the country’s growing ranks of troubled teens.

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Hanley Center Takes Flight
Written by Ted Jackson   
April 2006

Several decades ago, Mary Jane Hanley was living in St. Louis as the wife of an ambitious corporate executive who had moved to the city to become CEO of chemicals and agricultural giant Monsanto. It was a different time, one in which young women were expected to support their husbands careers, a role that more often than not required extensive participation at company and executive social events. Mary Jane willingly participated, but it was not easy for her. “There was a lot of entertaining when Jack was moving up the ladder,” she said. “I was shy and I found out that a few drinks helped me get through it.”

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Dual Diagnosis Addiction Care
Written by John Worley   
March 2006

It was many years ago that Dr. Morteza Khaleghi had his epiphany about addiction, related as it was to problems his wife’s side of the family had with the disease. “Yes, I saw the problems,” said Dr. Khaleghi, whose psychiatric education is rooted in the intensive self-analysis required for training in the psychoanalytic modalities. “But I also saw that recovery was possible, and that had a very profound effect on me.” In 1989, Dr. Khaleghi started a psychiatric facility in Northridge, CA, that opened his eyes to the extent that psychiatric ills were accompanied by addiction.

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Addiction Risk Management
Written by Ted Jackson   
February 2006
In the 1970s, David Sterling was studying at the University of Wisconsin and, frankly, at that time was not getting all that serious about his future. But then came a call from home with some news from his father, who had founded an insurance brokerage in New York with his brother as partner decades earlier.
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Information Technology
Written by Ted Jackson   
January 2006

Dr. David J. Brailer is an excellent speaker, and his depth of knowledge in medical economics and information technology were certainly evident to all who heard him deliver the lead speech last fall at the National Summit on Defining a Strategy for Behavioral Health Information Management in Washington, DC. Hand-picked by President Bush to lead the charge on health care information technology issues as the National Coordinator for Health Information Technology, Dr. Brailer spoke eloquently on the urgent need to develop a nationwide electronic health record (EHR) technology, painting a picture of big economic benefits for insurance companies and governments flowing from greater efficiency, as well as major improvements in quality and convenience for consumers.

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The Challenge of Keeping Care Affordable
Written by Ted Jackson   
November 2005
In 1985, George Joseph was just four years sober and working for a treatment center he greatly admired, Parkside Lodge in Houston. If the name sounds familiar, it’s because Parkside Lodge was part of the famous chain of Parkside addiction treatment facilities that was built by Lutheran General Hospital of Chicago in the 1980s. Joseph believed strongly in the mission Lutheran General had undertaken. “Parkside wanted to have a national treatment footprint, with easily identifiable quality standards and prices that were affordable,” said Joseph. “Unfortunately, there was a high degree of debt leverage at the company, which made its survival impossible when industry revenues plummeted with managed care.”

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CRC Health Corp: On a Rollup
Written by Ted Jackson   
July 2005
July 2005 Although he has been buying addiction treatment centers at a rapid clip, acquiring between one and two facilities on average every two months for the past 10 years, Barry Karlin has gone about his business with little fanfare, with his CRC Health Group going unnoticed by many despite having quickly grown into the nation’s largest treatment provider. But in March, Karlin got everyone’s attention when he announced that CRC had entered into an agreement to buy what is probably the most prestigious for-profit treatment center in the country, venerable Sierra Tucson.
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CRC Growth Plunges

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Alcoholism’s Huge Cost