Psychiatry was aware of the explosive situation created by its greed. An early warning came from Ralph Lopez, chief of the Health Facilities Division of Los Angeles County Health Services. In a 1983 memo, Lopez expressed alarm about the number of teenagers being placed in psychiatric hospitals and also about how psychiatrists played on patients’ fears. “These issues,” he said, “need to be faced and resolved before the lid blows off somewhere.”
Another caution came in 1987. A Psychiatric Times article entitled, “Psychiatry’s Time Bomb” warned that the “proliferation of private psychiatric hospitals ... poses a major threat to the psychiatric profession. It generates a significant pressure for admitting patients and keeping them in the hospital.... It is only a matter of time until the public, consumer groups and [insurers] become aware of this situation.”
Psychiatrists not personally responsible for the crimes leading to the August 1993 psychiatric hospital raids knew of the situation but did nothing about it. A Texas practitioner who requested anonymity told the Dallas Morning News, “Everybody would have a story to tell, and then we’d say, ’I don’t see what we can do about it.’ We just sort of shied away from it.”
Because psychiatry refused to police itself, businesses, government agencies and the courts were forced to take action.
According to a 1994 survey by Foster Higgins, business fought to contain mounting health care costs by “carving out medical plan benefits with more volatile costs, such as prescription drugs and mental health/substance abuse care, and offering them through freestanding ’managed’ care plans.” But, the survey warned, any savings enjoyed by doing so would be a one-time event because the factors creating the problem “have not gone away.”
Psychiatry’s $40,000,000,000 Fraud continued...
    
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