Medical director Dr Brett Ferguson said the decision to introduce the programme reflected increasing demand for addiction services already provided by the clinic.
There were many excellent community-based programmes available throughout the country, but some people could not break the addiction cycle because remaining in their usual environment was contributing to the problem, he said.
While the programme will be available to both privately and publicly funded patients, business manager Lindsay Smith said it was expected most people who attended would be privately funded and about two thirds of them would be from the North Island.
Dr Ferguson acknowledged the cost was significant but said it was an intensive residential programme.
If it meant someone could turn their life around, get back to work and repair relationships it was "money very well spent".
For the patients the clinic was treating, the addiction might be as life-threatening as heart disease.
Heart by-pass surgery could cost $50,000 and a heart valve replacement $65,000, he said.
Dr Ferguson did not anticipate it would be hard to fill the places on the programme.
A fairly high proportion of interest was expected to come from those with alcohol addiction.
There was no shortage of people with major addiction problems.
Safety was not expected to be an issue at the clinic as the therapeutic community approach provided around-the-clock support for those on the programme from both staff and patients.
The programme would have three phases - detoxification, followed by detailed assessment and then an intensive eight-week treatment programme.
Any other health issues which were present could also be addressed, Dr Ferguson said.
The programme team will comprise consultant psychiatrist Dr Sheila Doshi, who has advanced training in treating addiction, registered senior nurse Lorraine Watson, who has worked as an addiction specialist in New Zealand, Australia and England, and senior occupational therapist Sarah Redfearn, who has inter-national experience in motivational interviewing techniques used in recovery.
Ashburn Clinic, Dunedin
> A private psychiatric centre founded in 1882, formerly known as Ashburn Hall.
> Patients are seen as members of a therapeutic or healing community where they help care for each other.
> Contains two in-patient wards, each with 22 beds.
> Offers a day programme for 20 people.
> Treatments offered include those for anxiety, stress, eating disorders, addiction.