PLANS FOR METHADONE CLINICS GET TWIST

The merger of two companies that wanted separate treatment centers in the
Roanoke Valley has people wondering how many clinics will come.

The question of how many methadone clinics will come to the Roanoke Valley
has been muddled by the merger of two companies that had proposed separate
drug treatment centers.

National Specialty Clinics, which is planning to open a methadone clinic at
3208 Hershberger Road in Roanoke, was bought last month by CRC Healthgroup,
the companies said. CRC is the parent corporation of the Life Center of
Galax, which is also pursuing plans for a clinic in the region.

Plans for the Hershberger Road site will proceed under the company's new
organization, according to David Gnass, the former chief executive officer
of National Specialty Clinics who now works for CRC.

However, it was less clear Monday how the acquisition might affect plans by
the Life Center, which decided last month to abandon a proposed site in
Roanoke.

"We are very focused on the goal of providing this medical service to the
community as quickly as possible, and we will let demand determine the
appropriate number of clinics needed to serve the population," said Tina
Bullins, chief executive officer of the Life Center.

Philip Herschman, president of CRC's opioid treatment programs in San Diego
said there are several Roanoke Valley sites under consideration by the
company. He declined to elaborate.

At least for now, it seems the process will continue in much the same way
as when there were two companies involved in what has become a booming
business for methadone providers.

"We will continue on both paths until we have a clinic open," Herschman said.

If the Hershberger Road site were to open first, which appears likely, CRC
might wait to see how much business the clinic generates before making a
decision on a second location.

When National Specialty Clinics of Nashville, Tenn., announced plans last
year to open a clinic in a vacant office building on Hershberger Road, the
company estimated it would treat about 200 addicts of opium-based drugs
such as heroin and OxyContin in the first year. The Life Center had
projected between 200 and 300 patients at its Colonial Avenue site.

The Hershberger Road site is not large enough to accommodate more patients
at this point, Gnass said.

CRC's acquisition of National Specialty Clinics played no role in the Life
Center's decision to drop its plans to open a satellite clinic in a vacant
medical clinic at 3390 Colonial Avenue, Bullins said.

Last month, the Life Center abruptly dropped its legal challenge of a
decision by Roanoke County not to issue a business license for the clinic -
much to the surprise and delight of nearby residents who feared the clinic
would bring crime to their neighborhood.

"We did that for a couple of reasons, one being that we did not want a long
and expensive court battle, and the second being that we are committed to
working in a constructive and positive manner with community leaders and
citizens," Bullins said.

In taking over the Hershberger Road site, CRC will not need to restart
National Specialty Clinics' pending application for a state license or
obtain a second business license from the city, Herschman said.

The price of the deal between the two private companies was not disclosed.
With the acquisition of 16 methadone clinics that National Specialty
Clinics operated in six states, CRC is the nation's largest provider of
methadone treatment, Gnass said.

CRC did not own any clinics in the states served by National Specialty
Clinics, Gnass said, and his former company benefitted by becoming part of
a larger company with a sophisticated information technology system.

"This was as much of a strategic sales purchase as it was financial," he
said. "Because both companies needed each other for different things that
weren't financial in nature."

With the purchase, CRC now operates 48 methadone clinics and nearly as many
residential and traditional drug treatment programs.

Jeff Artis, a community activist who has been leading opposition to the
Hershberger Road clinic, said the change in corporate structure has no
impact on residents' belief that a neighborhood with schools nearby is not
the right place for an outpatient drug treatment center.