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The creation of addiction treatment programs was heavily influenced by two very different peer-based methodologies: Alcoholics Anonymous (AA; a support group format) and therapeutic communities (TCs; a long-term residential format). The original TC was named Synanon and was the brainchild of charismatic ex-addict Charles Dederich. Synanon flourished in the 1960s in California as a residential community for addicts who were seeking to become drug-free.

AA and TCs were models for the development of early treatment programs funded directly by the federal government. The National Institute on Alcohol Abuse and Alcoholism fostered the expansion of AA-derived treatment programs, and the National Institute on Drug Abuse funded many TC-based treatment programs. The success of these peer-based approaches contrasted sharply with the failures of physicians and psychiatrists who attempted to treat patients addicted to alcohol or other drugs.

In Synanon, addicts recovered through rigorous self-directed and group-supported change processes in which individuals drew from internal strengths in a self-reclamation process. The success of recovering addicts as counselors fostered the struggle that continues today in the tension between credentials and experience as qualifications for treatment providers. Throughout the history of treatment and the current rise of recovery support services, many have argued that those who have experienced addiction are the best source of help for individuals seeking recovery.

Charles Dederich was a recovering alcoholic, drug addict, and college dropout who was disappointed by the failure of professionals to successfully treat addiction and by the use of medications, notably methadone, as therapeutic tools. He developed a form of confrontational and transformational therapy grounded in the achievement of complete honesty about one's personal flaws and failures. Each newcomer to Synanon was assigned a "buddy" to accompany him or her through withdrawal, encouraging the newcomer that detoxification could be achieved by relying on one's internal strengths. After an initial recovery period, the newcomer participated 3 times weekly in what came to be called "the game" or "marathons," often lasting several hours. In this group activity, people attacked each other, pointing out the weaknesses that had led to drinking or drug using and that were making recovery difficult. The attacks were intended to break down participants' defenses so that the personal restructuring could begin.

Synanon soon became a halfway house in Santa Monica, in which residents performed household chores in a highly structured and disciplined system. They rose in rank over time, as they became better equipped to deal with society. Dederich's program was seen by many as a process of human change achieved through a new kind of nonprofessional therapy. From 1959 through the mid-1960s, Synanon claimed many successes among more than 500 addicts who overcame their compulsive use of drugs and became sober. Making personal adjustments, they found their place in society and rebuilt their health.

These successes were considered quite remarkable, in part because Synanon's clients were hardened long-term drug users who had failed repeatedly to overcome their addictions; the majority were well known by the criminal justice system. The program attracted much attention. The media and state and federal legislators praised it highly and a movie titled Synanon was made by Columbia Pictures, with Edmund O'Brien playing Dederich.

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