July 30th, 2013
09:00 PM ET

AC360 Exclusive: Rehab Racket Part 2

A year-long investigation by CNN and the Center for Investigative Reporting finds the drug Medi-Cal program in California, paid with state and federal money, is rife with fraud, allowing rehab centers to stay open despite serious problems. Former clients say that, as teens, they were taken in vans from group homes to rehab even though they had no drug problem.

For an in depth look at part two of "Rehab Racket," check out the full report on CNN.com.

CNN's Drew Griffin and California State Senator Ted Lieu discuss the results of the investigation.

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Filed under: Drew Griffin
soundoff (3 Responses)
  1. Pamela Kesee-Wyre

    Anderson, I have been a counselor for 15 years, this is the tip of an ice burg. Methadone Clinics bill Medi Cal by the minute. Physical exams are double billed,discussing medical problems with the doctor is done passing him in the hall, before he moves on to his own private practice, counselors fear for their jobs because they are not billing enough time, they want you to keep patients in the office "hostage" or you lose your job. The State of California spent millions to certify inmates with life sentences to become certified substance abuse counselor and now they have closed the substance abuse programs, what a waist. Medi Cal should NOT continue to pay for patients treatment who have not made ANY EFFORT to rehabilitate, HAVE NEVER provide one negative urine test. (FOR YEARS) and change their addiction to another drug while on methadone. GREAT STORY! I wish I could tell my experiences. EXPOSE CRIMINALS IN THE REHAB INDUSTRY.

    July 31, 2013 at 4:57 pm |
  2. Kevin

    As I watched this story being reported on AC360, during the story wrap up there was video footage of the name Alcoholics Anonymous (A.A.) and the 12 steps. A.A. is in no way affiliated to this or any other treatment facilities, does not accept financial contributions from any source outside of A.A.; A.A. is supported by its members only.
    To show the words Alcoholics Anonmymous during this report may give the viewers the impression that A.A. is somehow affiliated with this treatment facility. Please consider not showing the A.A. images during the newscast of this story.

    July 31, 2013 at 3:48 pm |
  3. Sherry Brady

    Through my experiences with my children going to rehabs that cost up to $8000.00 per stay, I learned that these rehabs are charging enormous prices to help our children "kick" the drug. In my daughters case it was alcohol. In my sons case it was Meth. Both were "offered" the same while residing in the rehab facility by other members whom just had someone bring it to them. My daughter was taken on a "chaperoned" visit to the store for personals and actually bought alcohol for herself and nothing was said. In this same rehab she and others caught staaff looking at pornography continuously while on duty. After at least 6 rehabs and a couple of group homes and a sober living house, my husband and I decided that there is no safe place to send our children for the help they need. Please don't just focus on the Medical programs that are failing. They are "all" failing. My children laughed at them and we paid a very high price for it. If anything they came out of these places worse than when they went in. This is such an important issue considering the rampant drug use in this day. We must be able to hold these places accountable for what takes place in their "drug rehabs". Thank you for looking at the tip of the iceberg but please go further. For the sake of our children.

    July 31, 2013 at 4:55 am |