How Beacon Health System Launched a Dedicated Substance-Use Management Program for Their Employees

BY Carrie Snider | September 11, 2024

In a typical 10,000-person organization, around 4,000 employees are affected by substance use disorder, yet only 120 receive treatment. This gap is why Yusuf Sherwani founded Pelago, the world’s first technology-enabled digital clinic for substance use management.

At a recent From Day One Webinar, Sherwani discussed his new approach to substance abuse treatment that’s been gaining traction among organizations. Eric Long from Beacon Health System, which offers Pelago to its employees, shared how they’ve implemented the program at their organization.

Pelago is a single provider offering complete treatment for substance use disorders for adults and teens, from prevention through treatment. Each member receives care from a multidisciplinary team via telehealth, providing counseling, prescriptions, and tools for recovery. 

“We cover over four and a half million lives across hundreds of large employers,” Sherwani said. “We’re still at the tip of the impact we hope to have.” With 40 million Americans affected by untreated substance use disorder, Pelago aims to break down barriers, starting with stigma and hopefully ending with a patient who is healthier and has an improved quality of life because of treatment.

Beating the Stigma of Substance Abuse

Yusuf Sherwani is the CEO and Co-Founder of Pelago (company photo)

Back in medical school, Sherwani witnessed the devastating impact of substance abuse both personally and professionally. “It was completely out of the blue,” he said. At the same time, during an internship at a psychiatric ward, he saw how reactive and limited frontline support was. “We often reach out to people only when the going gets incredibly tough.”

Stigma surrounding substance abuse often causes people to stay quiet, especially in the medical industry. As an ambulatory pharmacist at Beacon Health, Long’s patient population includes healthcare providers, a group particularly affected by this stigma. “People say, ‘You know better,’” Long said. “It makes it very difficult to treat properly.”

The high stress of healthcare jobs and easier access to substances can lead to disaster. Healthcare workers are 10-15% more likely to misuse substances, Long says, with 14-20% of registered nurses and 10% of physicians affected by substance abuse at some point in their careers. “It’s very difficult to come forward and say that you have a substance use disorder when you’re in healthcare,” Long said. Pelago’s anonymous services make it easier for employees to seek help early, which supports better outcomes.

“When I refer Pelago to a patient, I don’t know if they follow through. I just know they have the resource,” Long said. He often gives them a card with a QR code for Pelago as a possible solution for themselves or a loved one. Pelago also sends emails, and word-of-mouth from those in the program has been very effective. Because Pelago is digital, patients can tailor treatment to fit their schedules, a game-changer for healthcare workers who can’t always see a provider during regular hours.

Multiple addictions are common among those with substance use disorders, says Long. For example, 70% of workers with alcohol use disorder also struggle with tobacco addiction, and 35% of workers with opioid use disorder are also addicted to alcohol.

“Tobacco cessation is the least stigmatized addiction,” Long said, “and often the easiest way to start a conversation.” By addressing tobacco use, healthcare providers can often uncover other addictions and help patients seek broader treatment.

Healthcare Costs and Savings

Substance abuse disorder can lead to increased ER visits, liver issues, safety hazards, and cancer. Early treatment is key to preventing the long-term complications of substance use disorder, and quick intervention means healthier employees and cost savings for the organization.

When it’s all said and done, Pelago pays for itself by helping patients get treatment for substance abuse, resulting in better overall health and wellness, says Sherwani. Beyond the numbers, patients have shared testimonials about Pelago’s impact. 

Helping employees with substance use disorders also improves their overall health. Many people with substance use disorders also have other chronic conditions, such as diabetes, hypertension, or osteoarthritis. Once substance abuse enters the picture, these chronic conditions often go unchecked, leading to worsening health outcomes over time.

“There’s enormous overlap between mental health, particularly serious mental illness, and substance use disorders,” Sherwani said. Untreated substance use disorders double the number of workdays missed compared to those in treatment. Getting someone into treatment can reverse many negative consequences.

Sherwani says that around 95% of Pelago members are seeing a provider for their substance use disorder for the first time. This speaks to the stigma and access problem–people who aren’t seeking care on their own are responding effectively when treatment is made available to them. 

“They weren’t going to rehab, they weren’t going to help patient care, this wasn’t something that their primary care physician was really treating,” Sherwani said. Once they could get access to treatment through Pelago, they responded well.

Pelago also coordinates with Employee Assistance Programs (EAPs) and mental health programs already in place, addressing the comorbidities often present with substance use disorders. This collaboration revolutionizes access to treatment for the 97% of people with substance use disorders who are not seeking care on their own.

As a physician-led organization, Pelago has invested in peer-reviewed studies showing that the outcomes of their digital clinic are at least as good as face-to-face support and more than two and a half times better than traditional addiction treatment. For example, Pelago has achieved a 52% success rate at four weeks for tobacco cessation, with a 44% success rate at 12 months. For opioid use disorder, Pelago has seen a 67% success rate for complete abstinence within 90 days.

That’s hopefully just the beginning, Sherwani says. With more organizations working with Pelago, the future looks hopeful—not just for those struggling with substance use disorder, but for the companies that support them. By continuing to break down barriers, tackle stigma, and provide accessible, effective care, Pelago is poised to make a lasting difference in the lives of millions.

Editor's note: From Day One thanks our partner, Pelago, for sponsoring this webinar.

Carrie Snider is a Phoenix-based journalist and marketing copywriter.


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