Jenna Kluwe remembers all the beautiful moments she saw in a converted dental clinic in east Portland.
For six months, she managed the Journey Service Center, a “psilocybin service center” where adults 21 and older take supervised mushroom trips. She watched elderly clients with terminal illnesses able to enjoy life again. She saw one individual with obsessive compulsive disorder so severe they spent hours washing their hands who could casually eat food that fell on the floor.
“It’s like five years of therapy in five hours,” Kluwe, a former therapist from Michigan, said.
In 2020, Oregon made history by becoming the first US state to legalize the use of psilocybin in a supervised setting, paving the way for magic mushrooms to treat depression, PTSD and other mental health challenges. A flurry of facilities like the Journey Service Center, as well as training centers for facilitators to guide the sessions, sprung up across the state.
But five years later, the pioneering industry is grappling with growing pains. Kluwe recalled how early last year, her business partner abruptly told her the center was out of money and would close in March – the first in a wave of closures that set off alarms about the viability of Oregon’s program.
The Journey Service Center isn’t alone. The state’s total number of licensed service centers has dropped by nearly a third, to 24, since Oregon’s psilocybin program launched in 2023. The state’s 374 licensed facilitators, people who support clients during sessions, similarly fell. And just this week, Portland’s largest “shroom room” – an 11,000 sq ft venue with views of Mt Hood offering guided trips in addition to corporate retreats – reportedly closed down.
“The attrition is setting in, and a lot of people are not renewing their license because it is hard to make money,” said Gary Bracelin, the owner of Drop Thesis Psilocybin Service Center.
Many worry about how the program’s rules and fees have pushed the cost of a psilocybin session as high as $3,000, putting it out of reach for many just as psychedelics are gaining mainstream acceptance as a mental health treatment. Insurance typically doesn’t cover sessions, meaning people have to pay out of pocket.
Furthermore, the industry is struggling to reach a diverse group of clients: state data show that most people who’ve taken legal psilocybin in Oregon are white, over 44 and earn more than roughly $95,000 or more a year.
Depending on who you ask, these are either signs of an experiment buckling under hefty rules and fees – or a landmark program finding its footing.
“It’s not totally shocking for a brand new program to have a higher price tag,” said Heidi Pendergast, Oregon director of advocacy group Healing Advocacy Fund. She added: “I think that any new industry would see this sort of opening and closing.”
Pendergast pointed to data showing the program is safe with severe reactions vanishingly rare among the estimated 14,000 people who have taken legal psilocybin in the state since mid-2023.
Some practitioners, however, say the state has a long way to go to realize the program’s promises, while other centers are experimenting with new ways to keep costs down, broaden their clientele, and integrate with the mainstream medical system.
‘Some of them are total overkill’
Legal psilocybin seemed like a natural fit for Bracelin. The self-described serial entrepreneur previously founded a cannabis dispensary chain and did sales and marketing for outdoor products during snowboarding’s early days. When the program launched, he started jumping through the many hoops for Drop Thesis to start taking clients in January 2024.
The first obstacle, he said, was finding a property that met the state’s requirements to be more than 1,000 feet from a school and not located in a residential area – with a landlord willing to rent for the center. Bracelin said more than a dozen landlords turned him down before he found a spot. Then there was the challenge of getting insurance for a business centered on a federally illegal drug. The center used private funders instead of banks, he said.
Drop Thesis charges $2,900 for a session, which can last up to six hours as well as before and after meetings with a facilitator, while offering discounts to veterans and during Pride Month as well as one monthly scholarship that covers the full price, Bracelin said.
Factored into the price of a session is the cost of a facilitator and a “licensee representative” who walks clients through paperwork and other requirements. State rules require centers to pay a $10,000 annual licensing fees, install surveillance cameras, alarm systems and securely store mushrooms in safes.
“Some [rules] are definitely justified,” Bracelin said. “And some of them are total overkill, out of fear from people who don’t understand the product.”...
Adding to regulatory hurdles is the fact that Oregon’s local governments can ask voters to ban psilocybin businesses, creating a patchwork of bans in 25 of Oregon’s 36 counties and in dozens of cities.
Angela Allbee, the manager of Oregon’s psilocybin program, said in an emailed statement that the state became the first to enact regulations for a drug that’s federally illegal, and those regulations were written with broad input that have proven safe. As more data and feedback come in, the state will consider adjusting the rules, she said...
Although psilocybin is associated with mental health concerns, the 2020 ballot initiative that created Oregon’s program was designed to keep it outside of the medical system. Now, many supporters say it needs an outside source of cash, which could come from integration with the medical system.
Oregon lawmakers earlier this year took a first step toward making that a reality.
For six months, she managed the Journey Service Center, a “psilocybin service center” where adults 21 and older take supervised mushroom trips. She watched elderly clients with terminal illnesses able to enjoy life again. She saw one individual with obsessive compulsive disorder so severe they spent hours washing their hands who could casually eat food that fell on the floor.
In 2020, Oregon made history by becoming the first US state to legalize the use of psilocybin in a supervised setting, paving the way for magic mushrooms to treat depression, PTSD and other mental health challenges. A flurry of facilities like the Journey Service Center, as well as training centers for facilitators to guide the sessions, sprung up across the state.
But five years later, the pioneering industry is grappling with growing pains. Kluwe recalled how early last year, her business partner abruptly told her the center was out of money and would close in March – the first in a wave of closures that set off alarms about the viability of Oregon’s program.
The Journey Service Center isn’t alone. The state’s total number of licensed service centers has dropped by nearly a third, to 24, since Oregon’s psilocybin program launched in 2023. The state’s 374 licensed facilitators, people who support clients during sessions, similarly fell. And just this week, Portland’s largest “shroom room” – an 11,000 sq ft venue with views of Mt Hood offering guided trips in addition to corporate retreats – reportedly closed down.
“The attrition is setting in, and a lot of people are not renewing their license because it is hard to make money,” said Gary Bracelin, the owner of Drop Thesis Psilocybin Service Center.
Many worry about how the program’s rules and fees have pushed the cost of a psilocybin session as high as $3,000, putting it out of reach for many just as psychedelics are gaining mainstream acceptance as a mental health treatment. Insurance typically doesn’t cover sessions, meaning people have to pay out of pocket.
Furthermore, the industry is struggling to reach a diverse group of clients: state data show that most people who’ve taken legal psilocybin in Oregon are white, over 44 and earn more than roughly $95,000 or more a year.
Depending on who you ask, these are either signs of an experiment buckling under hefty rules and fees – or a landmark program finding its footing.
“It’s not totally shocking for a brand new program to have a higher price tag,” said Heidi Pendergast, Oregon director of advocacy group Healing Advocacy Fund. She added: “I think that any new industry would see this sort of opening and closing.”
Pendergast pointed to data showing the program is safe with severe reactions vanishingly rare among the estimated 14,000 people who have taken legal psilocybin in the state since mid-2023.
Some practitioners, however, say the state has a long way to go to realize the program’s promises, while other centers are experimenting with new ways to keep costs down, broaden their clientele, and integrate with the mainstream medical system.
‘Some of them are total overkill’
Legal psilocybin seemed like a natural fit for Bracelin. The self-described serial entrepreneur previously founded a cannabis dispensary chain and did sales and marketing for outdoor products during snowboarding’s early days. When the program launched, he started jumping through the many hoops for Drop Thesis to start taking clients in January 2024.
The first obstacle, he said, was finding a property that met the state’s requirements to be more than 1,000 feet from a school and not located in a residential area – with a landlord willing to rent for the center. Bracelin said more than a dozen landlords turned him down before he found a spot. Then there was the challenge of getting insurance for a business centered on a federally illegal drug. The center used private funders instead of banks, he said.
Drop Thesis charges $2,900 for a session, which can last up to six hours as well as before and after meetings with a facilitator, while offering discounts to veterans and during Pride Month as well as one monthly scholarship that covers the full price, Bracelin said.
Factored into the price of a session is the cost of a facilitator and a “licensee representative” who walks clients through paperwork and other requirements. State rules require centers to pay a $10,000 annual licensing fees, install surveillance cameras, alarm systems and securely store mushrooms in safes.
“Some [rules] are definitely justified,” Bracelin said. “And some of them are total overkill, out of fear from people who don’t understand the product.”...
Adding to regulatory hurdles is the fact that Oregon’s local governments can ask voters to ban psilocybin businesses, creating a patchwork of bans in 25 of Oregon’s 36 counties and in dozens of cities.
Angela Allbee, the manager of Oregon’s psilocybin program, said in an emailed statement that the state became the first to enact regulations for a drug that’s federally illegal, and those regulations were written with broad input that have proven safe. As more data and feedback come in, the state will consider adjusting the rules, she said...
Although psilocybin is associated with mental health concerns, the 2020 ballot initiative that created Oregon’s program was designed to keep it outside of the medical system. Now, many supporters say it needs an outside source of cash, which could come from integration with the medical system.
Oregon lawmakers earlier this year took a first step toward making that a reality.
by Jake Thomas, The Guardian | Read more:
Images: uncredited/Jake Thomas
