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Alabama Gains $75 Million Settlement from Purdue Pharma

Healthcare professionals discussing addiction treatment in Alabama

Alabama, October 11, 2025

News Summary

Alabama is set to receive up to $75 million over 15 years from Purdue Pharma’s nationwide opioid settlement, a crucial boost amid rising overdose rates driven by fentanyl. However, the state faces challenges in treatment access, with existing providers blocking new facilities under the Certificate of Need law. Health officials emphasize the importance of effectively distributing these funds for addiction treatment and recovery efforts across Alabama.

Alabama Receives $75 Million Settlement from Purdue Pharma Amid Opioid Crisis

Alabama is gearing up to make significant strides in combating its ongoing opioid crisis, thanks to a major settlement from Purdue Pharma. The state is set to receive up to $75 million over the next 15 years as part of a nationwide $7.4 billion settlement linked to the company’s role in the opioid epidemic. This windfall comes at a critical time when Alabama’s overdose rate has more than doubled since 2014, greatly fueled by the widespread prevalence of fentanyl.

Despite these funds on the horizon, there is an alarming shortage of substance abuse treatment facilities in Alabama. In fact, Bradford Health Services, the largest statewide player in addiction treatment, is currently opposing a new initiative aimed at opening a 60-bed residential addiction treatment campus in Shelby County. This area, in particular, lacks adequate facilities, raising concerns about the availability of essential treatment options for those in need.

Alabama health officials have acknowledged this dire situation, noting that their current healthcare framework leaves many individuals lacking access to treatment. For instance, Bradford’s Birmingham Recovery Center is referring over 40 patients out of state for treatment each month, which underscores the pressing need for more local resources.

The struggles surrounding the opening of new treatment facilities are partly due to Alabama’s Certificate of Need (CON) law. This law allows existing healthcare providers to block new facilities from being established, essentially giving them a “competitors veto.” As a result, established providers like Bradford are able to maintain a monopolistic status, which severely limits options for patients in critical need.

With such challenging barriers, it’s disheartening to see that Alabama has yet to follow in the footsteps of other states like South Carolina, Georgia, and Oklahoma, which have repealed their CON laws and subsequently experienced a boost in new treatment options.

As part of the larger settlement with Purdue Pharma, there is hope that the funds will be allocated to support addiction treatment, prevention, and recovery efforts across various communities in Alabama. Past settlements have already seen allocations directed towards recovery centers, churches, and nonprofits focused on addiction recovery efforts, making a tangible impact.

The Oversight Commission on Alabama Opioid Settlements, formed in 2017, plays a crucial role in ensuring that the funds received from opioid settlements are appropriately distributed. Although the precise allocation of the Purdue settlement funds hasn’t yet been determined, previous settlements have highlighted an effective shared distribution model between state and local governments.

It’s important for communities across Alabama to swiftly take action to sign the agreement and utilize the funding effectively to combat this crisis. With the opioid crisis having a disproportionate impact on residents, the allocation of these funds is crucial for enhancing local resources and providing help to those struggling with addiction.

Frequently Asked Questions

What is the amount Alabama will receive from Purdue Pharma?

Alabama is set to receive up to $75 million from the settlement over the next 15 years.

What has contributed to the rise in overdose rates in Alabama?

Alabama’s overdose rate has more than doubled since 2014, largely due to the prevalence of fentanyl.

What is being done to address the lack of treatment facilities?

Longleaf Recovery & Wellness is attempting to open a new 60-bed residential addiction treatment campus in Shelby County, which currently lacks such facilities.

What challenges do new treatment facilities face in Alabama?

Alabama’s Certificate of Need (CON) law allows existing healthcare providers to block new facilities, giving them a “competitors veto.”

How are the settlement funds expected to be used?

The settlement funds will support addiction treatment, prevention, and recovery efforts in communities across the country, including Alabama.

Key Features of Alabama’s Opioid Settlement

Feature Description
Settlement Amount Up to $75 million over 15 years
Overdose Rate Increase More than doubled since 2014 due to fentanyl
New Treatment Facilities Proposed 60-bed residential campus in Shelby County
CHALLENGES CON law restricts new facility openings
Use of Funds Support addiction treatment, prevention, and recovery efforts

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STAFF HERE BIRMINGHAM WRITER
Author: STAFF HERE BIRMINGHAM WRITER

The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.

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