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Disruptor | Peter Loeb, Lionrock Recovery

By | February 14, 2013, 3:00 AM PST

Online healthcare entrepreneur Peter Loeb’s backstory reads like the script for a made-for-TV serial drama, although it’s one working toward a happy ending.

The opening scene is set in 2004, the dismal day the successful Internet executive discovered his 17-year-old daughter, Ashley, in her bedroom barely breathing after a heroin overdose. It was just the latest episode in a young life already haunted by alcoholism for almost five years.

But despite the near-death experience and repeated family interventions, it would take her two more years to get sober.

“I’m not sure that I can express to you at this moment the level of turning inside out that a parent does with a child whose life is threatened with this kind of stuff,” says Loeb, speaking via videoconference from his home in Northern California, pausing as he turns back the clock. “And how hard it is. It’s one thing if your kid has cancer but is still on your team and ill. But people, while they are in the depths of struggling with their addiction, very often become horrid, horrid people. They are made insane by the drug use.”

Flash forward to early 2013. The camera pans into father and daughter working side by side on a project close to both their hearts. Their 2-year-old startup, Lionrock Recovery, uses secure videoconferencing technology to reach people struggling with chemical substance abuse. Lionrock certainly isn’t a replacement for medical rehabilitation, but it offers a lifeline for addicts who might not otherwise have access to outpatient services either because they live in a remote location or are reluctant to seek treatment in a public venue.

Loeb says: “Usually you start a company by saying, ‘Ah, I see a need, and we’re going to go out there and we’re going to target that need. We know what the market segment is, we know what the economics are, and we’re going to go get it.’ I think because this has been more of a labor of love, almost my revenge against addiction, which has come to ravage my family, that this started as an experiment.”

Lionrock offers the 52-year-old serial entrepreneur a chance to use his 28-year background in financial services, entertainment and interactive media for a higher purpose than producing the next great videogame, as he did in high-level management positions at Electronic Arts and SEGA. For 26-year-old Lionrock community manager Ashley -– usually the first point of contact for those seeking help — the venture is an ongoing catharsis that celebrates her seven years (and counting) of being sober.

“I can talk the talk here and I can talk to people who are coming out of residential care very confidently about what we do, but Ashley speaks to the people who are calling us who are a day sober or not yet sober,” Loeb says with pride. “Who have finally worked up the courage to make the call, who are absolutely desperate, and she knows exactly what to say, because she has been there.”

For both Loebs, Lionrock pays homage to another family member -– Peter’s late sister, who lost her struggle with alcohol and opiate abuse before the age of 50. “She wore her body out,” Peter recalls, his voice tinged with regret.

Founded in 2010 after his sister’s death, Lionrock has been actively offering its services since late 2011. The backstory for its name is one that Loeb isn’t willing to share. Although the method in which treatment is delivered may be unusual, its counselors follow the intensive outpatient protocol laid out by the American Society of Addiction Medicine and adopted by the federal Substance Abuse and Mental Health Service Agency.

The full regime suggests 36 hours per month, including individual and group sessions. But Lionrock also offers a 14-hour per month program that costs $28 per hour. The company’s clinical team, medical advisers and addiction therapists include addiction experts who are primarily from the San Francisco Bay Area. Most of them have more than a decade of experience in their field.

“We feel strongly that we are doing the right thing, clinically, but we need to persuade everyone else of that,” Loeb says, describing the current phase of his startup as an experiment.

So far, Lionrock is doing pretty well at that. It has already earned a prestigious Gold accreditation from independent healthcare certification and accreditation body, The Joint Commission -– a title just 6 percent of all addiction treatment centers in the United States hold and one that confers an air of respectability that resonates loudly among medical professionals.

Given the Loeb family history, it seems fitting that a majority of those who have turned to Lionrock so far have turned out to be women. “We expected that young men would be our early adopters, because they are usually early adopters of technology,” Loeb admits, pointing back to his original business plan. “It’s turned out that it is women in their 30s, 40s and 50s. In America, in treatment centers, men represent 70 to 75 percent of all clients. In our practice it is reversed.”

Like programs offered at on-site treatment centers, Lionrock patients participate from as short as six weeks to as long as three months, depending on their individual plan. Some treat it as “prehab” and have moved on to more formal sessions. In some cases, Lionrock has referred callers to facilities where they can get the medical attention necessary to get clean — it also convinced one woman from rural Canada to relocate to a place where she could receive better social support for her rehabilitation. “A life of recovery requires a community of people who are also in recovery,” he says.

Although Loeb jokes about forgetting to shave before our high-definition video interview and makes the requisite self-deprecating remark about his receding hairline, for a middle-aged guy he is quite comfortable in front of his high-definition camera (set up in his garage with a fabric Lionrock banner separating his desk from the clutter behind it). It’s a habit acquired from numerous virtual teleconferencing encounters with his co-founder and business partner, Iain Crabb, who lives on the other side of the San Francisco Bay.

The two will often initiate conference sessions, brainstorm a problem, and then leave the bridge open so that they can work  “together” for a while. “Eventually, I wondered if video might be useful in reaching places where it wasn’t possible to reach people before,” Loeb says.

While the rise of Skype and other video calling services have made Lionrock’s target demographic much more comfortable with the idea of conversing from computer to computer, the company is perpetually seeking an easier option, but not at the expense of 128-bit encrypted security or video quality. “People unconsciously associate what we do with television or the entertainment industry.”

The handful of angel investors behind Lionrock would doubtless love to see to see it go big, but for now, Peter Loeb is content to shepherd his modest venture one day at a time.

“When you do startups, there is never a dull moment,” Loeb says, when pushed to share advice for other would-be startup founders. “Probably the most important entrepreneurial skill to have is a tolerance for fear, because at any minute, the whole thing could go to hell. You have to say, ‘OK, maybe it will, but we are going to do 30 things to try to prevent that.’ “

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Heather Clancy

About Heather Clancy

Heather Clancy is a contributing editor for SmartPlanet.

Heather Clancy

Heather Clancy

Contributing Editor

Heather Clancy has written for United Press International, ZDNet, Entrepreneur, Fortune Small Business, the International Herald Tribune and the New York Times. She holds a degree from McGill University. She is based in New Jersey.

Follow her on Twitter.

Heather Clancy

Heather Clancy

I am fascinated about how businesses of all sizes can transform their operations through technology -- not just to make themselves more efficient, but to rise above their competitors. That's the theme for my two ZDNet blogs, Small Business Matters and Next-Gen Partner. For SmartPlanet, I'm focused on profiling inspirational and controversial business leaders who have great leadership lessons to share. I also write regularly and passionately about corporate social responsibility and sustainability issues for GreenBiz.com.

Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where an engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology or moderating Webcasts. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and topics that I cover in my blogs.

She writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
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Projecting light into the darkness of addiction
What a picture of love in action, a pursuit marathon that inspires us to love well.

So much of the struggle with addition is done in secret, in the shadows.
Shame drives people to hide. So glad to see this innovative approach !
(my son suggests getting on the TV show, Shark Tank, to expand your company)
Posted by karl.tusing@...
15th Feb
0 Votes
+ -
Thank you for your kind words
Maybe your son is right!
Posted by pkloeb
17th Feb
0 Votes
+ -
funny, I thought the end of
the article would say the treatment was free to people who couldn't possibly afford it. Of course having a computer and internet access means the service is used by people who do have money, and credit cards, so why make it inexpensive and affordable? Why not make big profits? Addicted to profits?
Posted by affordablecomputerguy@...
15th Feb
0 Votes
+ -
More nonsense
Millions of people have cleaned up and achieved a sober life without having to pay "professionals" for their expertise. Those millions will be happy to help you for free. In patient treatment is excellent for giving a safe space and a launching platform to enter the unfamiliar realm of a substance free existence, and a little education is always useful, but forking out thousands of dollars is unnecessary.
Posted by krl10
16th Feb
0 Votes
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contempt prior to investigation
One of our most important clinical goals at Lionrock is getting our clients into a support group like Alcoholics Anonymous or one of the alternative groups like SmartRecovery. We believe that having a strong sober community is key to building a life in recovery. My daughter is both a sponsor and a sponsee in AA, and I have attended many meetings with her over the years.

There are many paths to recovery, and there is no single "right" path for everyone. Many clients who come to us at Lionrock are so ashamed of their addiction and so frightened about getting sober that they aren't willing to go to meetings, or local outpatient programs, or in-patient programs (most of which they can't afford). Through our program, they can get started in full anonymity online, from the privacy of home. By the time they've finished our program, at costs less than 10% of in-patient programs, they have a home group and are attending meetings. This is just one of the benefits of our program.

The following is verbatim feedback from a Lionrock client from suburban Toronto, Canada:

"I think its a life changing programme. I think you have figured out that there are people out here, that still do not know how to get the help they need or just dont know how to ask for it. Those people who need help, but can't commit to taking time off work for whatever reason or who are not comfortable enough yet with the AA programme, because to actually step into a meeting is scary."

This testimonial and others are available on our site at: www.lionrockrecovery.com/what-our-clients-say/
Posted by pkloeb
Updated - 17th Feb
0 Votes
+ -
Marvin
I have read your article.It is very informative and help full for me.Thanks for sharing this bunch of good information above here.

http://www.marineworkcomp.com/
Posted by Marvin123
21st Mar
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