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Bedlam: Greed, Profiteering, and Fraud in a Mental Health System Gone Crazy Hardcover – January 1, 1994

4.4 4.4 out of 5 stars 5 ratings

As Americans examine the out-of-control spending on health care, Bedlam exposes one of the costliest and most insidious medical scandals of recent times: the rapacious advance of the for-profit mental-health industry. By the end of the 1980s it had managed to lay claim to about 25 percent of all money spent by U.S. employers on employee health benefits.
During the 1980s, as the Recovery Era dictated broader insurance coverage for an ever-growing range of disorders, addictions, and behavioral problems, investor-owned psychiatric hospitals expanded at a dizzying rate. Using "guerilla marketing," co-opting the psychiatric profession, and even hiring clergymen, guidance counselors, and other trusted community figures as bounty hunters, these psychiatric hospitals sought to bring in paying customers to a plethora of "treatment programs." Most seemed to have one thing in common: Patients miraculously improved the day their insurance expired. Beyond the horror stories of patient kidnapping, fraud, and abuses of children and adolescents, Bedlam examines the unholy alliance between modern "biopsychiatry" and the hospital, pharmaceutical, and "addiction" industries. It is an alliance that has succeeded in establishing, as federal policy, the astonishing notion that in any given six-month period, more than 20 percent of Americans need professional psychiatric care - and should be covered for it with generous insurance benefits.
As new health-care reforms provide for expanded mental-health coverage - in a formula that reflects the lobbying goals of the psychiatric industry - Bedlam blows away the public-relations smoke screen and shows what happens when modern marketing strategies are applied to psychiatric care. This is a truly shocking and important book, and one that, once read, will never be forgotten.

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Editorial Reviews

From Publishers Weekly

In this powerful, scathing indictment, Sharkey ( Above Suspicion ) exposes profound venality and criminally actionable practices in today's psychiatric industry. He ascribes soaring medical health costs (more than $125 billion in 1991) to a conspiracy involving the biopsychiatric profession, for-profit mental and addiction facilities, drug and insurance companies. He further charges that many in the psychiatric profession have abandoned the severely mentally ill while private, investor-owned hospitals offer bounties of up to $1500 to clergy, teachers, police and "crisis counselors" for recruiting--one Texas legislator uses the term "body-snatching"--troubled adults, adolescents and children covered by insurance policies that pay up to $30,000 for inpatient care. In 1993, the fraud practiced by Medicare- and Medicaid-subsidized hospital chains such as National Medical Enterprises, with 86 psychiatric hospitals and revenues of $1.74 billion in 1991, was revealed by the FBI. The psychiatric industry, Sharkey warns in this chilling, well-documented account, is lobbying for a large slice of the health reform pie and continues to "create mental illness with advertising."
Copyright 1994 Reed Business Information, Inc.

From Library Journal

Journalist Sharkey (Above Suspicion, LJ 12/93) focuses on the abuses that developed in some large for-profit mental health hospital corporations throughout the 1980s. As an increasing number of health insurance providers began covering costs for in-hospital mental health treatment, some corporations exploited this coverage by basing admission and discharge decisions solely on insurance. Some hospitals used questionable or totally unethical marketing practices, going so far as to pay bounties to clergy, school personnel, and family counselors for referrals. A few of these corporations went bankrupt as legislatures and insurance agencies tightened control, but most continue to operate. Healthcare reform remains a hot topic, and Sharkey adds a piece to a much larger puzzle of what needs fixing in the healthcare field. For most public libraries.
Marguerite Mroz, Baltimore Cty. P.L.
Copyright 1994 Reed Business Information, Inc.

Product details

  • Publisher ‏ : ‎ St Martins Pr; First Edition (January 1, 1994)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 294 pages
  • ISBN-10 ‏ : ‎ 0312104219
  • ISBN-13 ‏ : ‎ 978-0312104214
  • Item Weight ‏ : ‎ 1.3 pounds
  • Dimensions ‏ : ‎ 6.5 x 1 x 9.5 inches
  • Customer Reviews:
    4.4 4.4 out of 5 stars 5 ratings

About the author

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Joe Sharkey
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Joe Sharkey's narrative true crime book "Above Suspicion" (Simon & Schuster 1993; Updated Edition Open Road 2017) has been adapted as a major motion picture starring Emilia Clarke, Jack Huston and Johnny Knoxville. He is also the author of the true crime books "Death Sentence" and "Deadly Greed," the investigative nonfiction book "Bedlam," and (with Angela Amato) the novel "Lady Gold," about a New York Police Department detective who goes undercover for a year posing as a mafia guy's girlfriend.

He was a New York Times columnist for 19 years and before that an editor at the Wall Street Journal and a reporter and columnist at the Philadelphia Inquirer.

He is at work on "Wreckage," a deep dive into the devastating historical effects of the priest sexual abuse scandal on the Catholic Church, as well as the novel "Action News," a murder mystery and dark comedy set in the tumultuous world of local TV news in Philadelphia in the 1970s.

He is a native of Philadelphia. He and his wife Nancy , an emeritus professor at the University of Arizona, live in Tucson.

Customer reviews

4.4 out of 5 stars
5 global ratings

Top reviews from the United States

Reviewed in the United States on January 14, 2006
Reviewer Charles Hannasch is correct in his observation about the swift publication of Sharkey's book. I am not aware that other books or publications of this story were hurt thereby. However I wish that Sharkey had interviewed me about some details since I'm the one who initially trained Sector One personnel on mental health emergency detention warrants and because of that involvement assisted (then State Senator) Frank Tejeda's office in the investigation.

In my own book, Enhancing Police Response to Persons in Mental Health Crisis, Charles C. Thomas, Publisher, 2003, I give some additional detail about the background of Sector One and the alleged kidnappers and ability in those days of civilians to execute mental health emergency detention warrants.

If he were to write a sequel or second edition Sharkey might note that quite rightly (at least in my view) all charges against the so-called "bad guys" were ultimately reduced to misdemeanor status.

Mr. Sharkey's account is well-told; his word-smithing skills unparalleled.
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Reviewed in the United States on December 23, 2016
Read this years ago as a library book, now glad to have my own copy to read again.
Reviewed in the United States on December 10, 2014
This is an excellent book, full of facts and reads like a thriller. Shame on the Mental Health "industry." I unfortunately came into contact with an opportunistic, greedy practitioner - complete with fake PhD - in 1987, who tried to wrangle a "referral fee" out of me. It was traumatic. I was made aware of 2 other victims, and I am sure there are many more out there. Orwellian. Unfortunately, the general unsuspecting public is ignorant of what is and is not "mental illness" and so this exploitation was and is possible. No practitioner should ever have that kind of power.
Reviewed in the United States on March 17, 2009
Bedlam is a detailed and at times excellent expose of the perverse way in which our mental health system grew in the decades leading up to the 21st century. Journalist Sharkey exposes the use of forcible detention, incarceration, kidnapping, the deliberate falsification of diagnostic procedures, the abuse-such as with the inappropriate use of restraints and medications-of mentally ill or vulnerable patients, and the subsequent attempts by the industry to cover their tracks and escape punishment for their fraudulent and felonious activities. Numerous stories, both horrific and comical, such as one instance where a perfectly normal patient, in order to escape institutional incarceration, got married but didn't 'consumate the marriage', are related.

But why then only three stars? Well, there's a significant problem with the book: Sharkey, not being an economist, by and large misdiagnoses the causes for these crimes, attributing them to free-market forces, de-regulation, and 'the profit motive'. But as recent events in 2008 and 2009 with the housing crisis show, booms in one area of the economy are often caused by government subsidies and funding, either directly, as in housing by Fannie Mae and Freddie Mac and their subsidies of low-interest mortgages, or indirectly, by the Federal Reserve pumping up the economy with it's low interest rates, with huge amounts of this increased money supply subsequently flowing to the housing sector. The same process, incidentally, is happening in education, with government subsidies and grants having caused in the last twenty years huge increases in college tuitions. (What often also occurs with this gargantuan, governmental funneling of money is increased corruption within that sector of the economy.) Sharkey unfortunately, by and large, although he at times mentions in passing vital causes such as increased Medicare funding, misses the correspoding process at work here.

A typical example, with a question which Sharkey asks near the end is why the insurance companies, who were paying all these enormous bills, didn't investigate what was going on. And the real answer which Sharkey doesn't give us? Payment of these claims was often legislated and mandated by state and federal governments, who thus forced deep-pocketed companies to pick up the tab. (At one point Sharkey mentions that these claims totaled "24 percent of corporate America's pre-tax profits," and he also mentions at times the additional problem of third-party payments, with their resulting cost-cutting disincentives for consumers, but he never integrates these points into a coherent and consistent economic rationale.) Why, then, would insurers have objected to paying these claims when the system was rigged and their profits ensured by law through the passing on of these costs to the patient's employers? Here 'the profit motive' was actually undermined by the government, who, by guaranteeing profits, removed the motivation of insurance company investigators to discover the fraud earlier.

Good arguments detailing in depth how far from a free-market the general health care system really is, where the reader will find a necessary corrective to Sharkey's misunderstanding of the pernicious and comprehensive role government played in unwittingly promoting this catastrophe, can be found for example in The Cure: How Capitalism Can Save American Health Care, or the Cato Institute's Healthy Competition. You think a system where children and adults are kidnapped, abused, and held as prisoners, where the government through its hugely debt-funded ($45,000,000,000,000 unfunded obligations in 2004) Medicare program subsidizes and pumps federal money into the mental and general health care industry, and where the government mandates that companies pay for the resulting enormously expensive and bogus therapy is a free-market? Think again.
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