What are Opioid Settlement Funds?
As pharmaceutical companies that manufactured opioids like oxycontin misled doctors and patients about the inherent risks of such medications, many patients developed SUD as a result. The ultimate outcome was the present-day opioid crisis we see now in our country.
In one of the largest public health legal proceedings since the 1990’s settlement against tobacco companies, courts have found that pharmaceutical companies, and Purdue Pharma in particular, in the wrong. 23 states and 2,000 local governments were involved with the case. Purdue Pharma had to file for bankruptcy and pay roughly $12 billion dollars for the deception against the American people.
Now, that money is making it’s way to state, county and local governments. Most entities that receive funding are setting up nonprofit organizations to deal with the work of screening, selecting and distributing funds to businesses and organizations that do addiction treatment and recovery work.
This is a huge opportunity for those in the sober living business.
Montana’s Sober Living Home Funding is Rolling Out Slowly
Montana is slowly dispersing the $13 million that has been allotted to it. 70% of the money is controlled by the Montana Opioid Abatement Trust, which meets quarterly to review grant applications. You can apply for funding through their online portal here. According to the organization’s guidelines, which can be downloaded here, sober living homes are categorically qualified to receive Abatement Trust funding.
According to guidelines, any applicant that “provides treatment and recovery support services “ including “recovery housing” is hypothetically eligible for a grant.
Colorado Has Received a Large Amount of Settlement Funding for Sober Living
Colorado has received over $7 million dollars from settlements with pharmaceutical companies to be used towards addiction treatment services in the state. $4.5 million dollars of that total is allocated to the Denver area. The state expects to receive more funding from settlements in the future over the course of “many years'' according to it’s website. The funding is controlled by the Colorado Opioid Abatement Council, which meets twice a year to consider proposals and disburse funds. There are 19 regional councils which work directly with organizations seeking finding.
Recovery housing is a big priority in Southwest Colorado. The SouthWEST Opioid Response District is spending over half of the $1.5 million settlement on building recovery housing. The rest of the money will fund grants for local and regional organizations.
Arizona Just Awarded $800,000 of Settlement Money to Sober Living Projects
Arizona first gained access to opioid settlement money in 2022. They were one of the first states to receive any settlement money at all. Although the state made missteps in allocation, often funding fraudulent programs, experts hope that national attention to the issue will bring reform.
Each county is responsible for assigning funding for local organizations. Rock County, for example, just awarded $800,000 across a handful of sober living homes from its $5 million settlement funding pool. Sober living homes and recovery residences are categorically included as funding priorities in Arizona.
New York Sober Living Home Funding Update
New York state has received a whopping $192 million in settlement funds to date. The funding is disbursed through a county-based network based on a formula that takes population, overdose death rate and other factors into account. Funds are disbursed on a quarterly basis. You can see current award trends at the Opioid Settlement Fund Tracker. Last quarter, a total of $16,287 was awarded to sober living homes.
Missouri Opioid Settlement Money is Now Available to Sober Living Homes
Missouri received $88.8 million from pharmaceutical settlements in 2023. Sober living homes fall under the “allowable use” for the funding - along with supportive housing, recovery housing and housing assistance. The first annual report was released earlier this year.
Vermont Opioid Settlement Money for Sober Living Homes
Vermont received over $100 million in lawsuit money from pharmaceutical companies. The money is managed by the Vermont Opioid Settlement Advisory Committee.
Recovery residences are eligible for the settlement money. One organization, Recovery Partners of Vermont, recently wrote a proposal requesting funding for 16 certified recovery residences within the state. The proposal requested a total of $3,040,000 in funding across 16 residences, with $190,000 allocated for each sober living home.
Sober Living App Supports Recovery Residence Excellence
Behave Health is committed to making it easier - and more profitable - to operate evidence-based, results-focused addiction treatment centers.
Our all-in-one app puts clinical, administration, staff, admissions, alumni, residents, treatment plans, billing, insurance authorizations and more - all at your fingertips.
Get your free trial started today and see why more addiction treatment centers prefer Behave Health.
PS. Just getting started with behavioral health? Need help with certification, too? Behave Health can also help direct you to the right resources for help with Licensing or Accreditation by either The Joint Commission or CARF. Mention to your product specialist that you’re interested in this service after you start your free trial!