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Bedlam: Greed, Profiteering, and Fraud in a Mental Health System Gone Crazy Hardcover – January 1, 1994
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.
- Print length294 pages
- LanguageEnglish
- PublisherSt Martins Pr
- Publication dateJanuary 1, 1994
- Dimensions6.5 x 1 x 9.5 inches
- ISBN-100312104219
- ISBN-13978-0312104214
Editorial Reviews
From Publishers Weekly
Copyright 1994 Reed Business Information, Inc.
From Library Journal
Marguerite Mroz, Baltimore Cty. P.L.
Copyright 1994 Reed Business Information, Inc.
From Kirkus Reviews
From the Inside Flap
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 "guerrilla 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.
About the Author
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
- Best Sellers Rank: #2,145,525 in Books (See Top 100 in Books)
- #425 in Popular Psychology Mental Illness Books
- #2,121 in Health Care Delivery (Books)
- #76,070 in Politics & Government (Books)
- Customer Reviews:
About the author

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.
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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.
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.
