Oregon’s pioneering psilocybin service center program—established in 2023 as the first legal framework for psychedelic therapy in the U.S.—is facing a critical test: nearly 25% of licensed centers have already shuttered within two years, citing $10,000 annual licensing fees, federal Schedule I restrictions, and burdensome safety mandates.
Opened with high hopes following the passage of Measure 109, these centers offered guided psilocybin sessions to adults over 21. But licensees now report that costs associated with security cameras, steel safes, and compliance protocols—all mandated by regulators—have significantly eroded their financial viability. One center owner lamented, “We came in with a mission to help people, but the cost barriers are pushing us out.”
This wave of closures echoes a familiar pattern seen in early cannabis legalization states, where well-intentioned regulation was soon followed by costly operational overhead. Advocates contend that Oregon’s model needs fine-tuning—lower license fees, scaled safety requirements based on traffic, and clearer federal guidance could stabilize the fledgling industry. Otherwise, access may remain restricted to wealthy urban hubs, undermining the equity goals of the original ballot initiative.
Culturally, the closures are being discussed in psilocybin circles as a cautionary tale about regulatory overreach. Retreat organizers and community advocates are staging hybrid events that promote traditional ceremonial practices—free from licensing fees—while encouraging clients to support licensed centers so the legal economy survives.
Public health experts acknowledge the importance of safety measures but note there’s a tipping point when license costs undercut therapeutic capacity. They advocate for sliding-scale fees, especially for rural or community-led providers, so access remains broad and culturally relevant.
Industry analysts are observing similar strains in Colorado and California, suggesting that early-stage regulatory frameworks frequently impose costs that may outstrip program revenues—unless carefully managed. Some experts suggest incorporating third-party auditing, shared compliance infrastructure, and public-private federations to reduce duplication and cost.
Despite financial pressures, Oregon’s broader psilocybin program still garners support from health researchers and therapists. They emphasize that the clinical oversight, data collection, and infrastructure established thus far remain an unprecedented milestone in U.S. mental-health policy. If adjustments are made, they could pave the way for more sustainable growth, inclusive access, and culturally attuned practices.
Source: Willamette Week
