by admin

Patient brokering, also known as “body brokering”, is the practice of off-trading a client referral for money, and it’s becoming more common in today’s drug rehab and substance abuse treatment industry, and threatens to undermine the overall success rate for treating patients. Cases of patient brokering, insurance fraud and other unethical practices have led the FBI to investigate several drug rehab facilities and prompted drastic actions by health insurers, yet recent reports suggest such illicit activities are still taking place. Typically, “body brokering” works like this: a patient/body broker contacts a treatment center with a specific person who is in need of treatment. In return for this referral he/she expects a payment. This transaction could potentially come from another treatment center, a counselor or coach, a freelance treatment placement specialist, an interventionist, call centers who ask for a marketing agreement and most clearly, the street level marketer.

449 Recovery Goes on the Offensive

Recently, in an effort to outline and address the growing concern over “body brokering”, Andrew Maloof, Business Development Representative at 449 Recovery, was a featured speaker at an area round table and discussion in San Juan Capistrano. In general, the cost of patient acquisition involving the practice of paid referrals, or “body brokering” is between $10,000 to $15,000 per patient. In addition, many of those who are ‘sold’ to a clinic don’t receive the appropriate care that addresses their specific addiction situation. “To some, this practice may seem harmless,” explains Andrew, “but it’s clearly not. First of all, a good treatment center should not need to pay someone to send them clients. Their clinical work should speak for itself. Secondly, many clients you pay for may end up being inappropriate for your program.” Maloof and the staff at 449 Recovery have adopted an aggressive “hands-off” policy concerning the practice of paid referrals, and are actively seeking to influence other addiction treatments centers to do the same. Says Maloof, “The sale or purchase of a client/patient referral in our industry is nothing less than poaching. Not only is it unethical, it’s illegal, and it is a disservice to our patient/clients. We need to create a spirit of cooperation among all addiction treatment centers and do a better job of self-regulation so our industry can see improvements in our patient treatment success rates.”

Mandated care and “Obama Care” Partly to Blame?

Many believe the Affordable Care Act and 2008 Parity Act have inadvertently driven the surge in unethical and fraudulent activities by expanding access to healthcare and mandating coverage for substance abuse treatment, making drug users with health insurance a sought-after commodity. Some drug rehab centers and halfway houses are reportedly paying patient brokers—also known as “marketers” or “body brokers”—up to $10,000 per head for bringing drug users into their programs, with some marketers even giving their recruits money for drugs to ensure they test positive when checking into treatment . Continues Andrew, “Those who are trying to overcome addiction need outcome-focused treatment that will put them on the road to recovery and sobriety, but that’s not likely to happen when unscrupulous individuals are profiting by keeping them relapsing and in rehab.”

Stricter Regulations and Tighter Enforcement May Be on the Way

To combat the rising tide in patient brokering, there are hints that additional regulations and enforcement may be coming. According to Bryn Wesch, Chief Financial Officer for Novus Medical Detox Center, regulation concerning substance abuse treatment centers is long overdue. “So many other businesses are regulated, yet these addiction centers and halfway houses escape regulation because they are classified as ‘residences.’ We’ve seen the consequences of unregulated recovery residences and the harm they can cause,” said Wesch. “That’s why we’d like to see regulations expanded throughout the addiction treatment industry, so that people with substance use disorders can be assured of safe, outcome-focused care from legitimate providers of detox, drug rehab and intensive outpatient treatment programs.”


For informant on addiction recovery, contact the team of experienced, qualified professionals at 449 Recovery, by calling 855.435.7449.