Troubled Teen Industry Exploits Adopted Kids

The "troubled teen industry," a network of for-profit residential treatment centers, is increasingly targeting adopted children, who are vastly overrepresented in these facilities. Experts estimate that 25-40% of children in residential treatment are adoptees, despite them being only 2% of the U.S. child population. Many adoptees describe these experiences as being trapped in a "shadow orphanage system," institutionalized for years in oppressive and sometimes abusive environments.

Facilities often market themselves to parents of adopted children experiencing behavioral issues, frequently diagnosing them with Reactive Attachment Disorder (RAD). However, experts contend that most of these older children do not have RAD, a diagnosis typically reserved for very young children with severe neglect. This dubious diagnosis, which can cost parents up to $20,000 per month, is criticized by some psychologists for being "corrupted" and overused.

Behind these operations, private and public equity companies are acquiring facilities, drawn by substantial profit potential and a constant supply of struggling youth. These centers can yield profit margins as high as 20% by minimizing staffing costs and prolonging a child's stay, a practice made easier by a lack of stringent regulation compared to other healthcare settings. Some companies, like Family Help & Wellness, operate multiple facilities and face lawsuits alleging abuse, with two of their properties in North Carolina having closed after children died there in the last two years.