8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 9, 2007

Hythiam, Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation) 001-31932
(Commission File Number) 88-0464853
(IRS Employer
Identification No.)

11150 Santa Monica Boulevard, Suite 1500
Los Angeles, California
(Address of principal executive offices)  90025
(Zip Code)

Registrant’s telephone number, including area code (310) 444-4300

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.

(d)   On July 9, 2007, Hon. Karen Freeman-Wilson (ret.) was appointed to our board of directors. Judge Freeman-Wilson has practiced law as a partner at Freeman-Wilson & Lewis-Shannon, LLC since July 2001. From April 2001 to November 2006, she served as Chief Executive Officer of the National Association of Drug Court Professionals and Executive Director of the National Drug Court Institute, where she was the primary spokesperson for drug treatment courts and provided national leadership for the integration of treatment and support services in the judicial arena and education of non-drug court professionals about addiction and treatment. From February 2000 to February 2001, she served as Attorney General for the State of Indiana. From October 1994 to February 2000, Judge Freeman-Wilson served as presiding judge, Gary City Court, where she initiated the first drug treatment court in the State of Indiana. She received a B.A. Cum Laude from Harvard College and a J.D. from Harvard Law School.

     Judge Freeman-Wilson will receive standard board compensation, and will receive options to purchase up to 100,000 shares of stock at the fair market value on date of grant, vesting 20% each year for five years. As a director who is independent as defined by the applicable Nasdaq rules, she is expected to be named to the board’s audit committee.

     There are no family relationships between Judge Freeman-Wilson and any of our other directors or executive officers. In 2006, we contributed $10,000 to her Gary, Indiana mayoral campaign. She has not had a material interest in any other transactions with us since the beginning of our last fiscal year.

Item 9.01 Financial Statements and Exhibits.

(d)   Exhibits.

No.	Description
99.1	Press release dated July 10, 2007

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HYTHIAM, INC.
Date: July 10, 2007	By:	/s/ CHUCK TIMPE
		Chuck Timpe
		Chief Financial Officer

EX-99.1

EXHIBIT 99.1

	Press
Release
Hythiam Contact:	Media Relations:
Sanjay Sabnani	Tim Sullivan
EVP Strategic Development	Dan Klores
Communications
(310) 444-5335	(212) 981-5234
ssabnani@hythiam.com
tim_sullivan@dkcnews.com

HYTHIAM APPOINTS PAST INDIANA STATE ATTORNEY
GENERAL AND FORMER HEAD OF NATIONAL DRUG COURT
INSTITUTE TO BOARD OF DIRECTORS

LOS ANGELES—July 10, 2007—Hythiam, Inc. (NASDAQ:HYTM), announced today that Honorable Karen Freeman-Wilson (ret.) has been appointed to Hythiam’s Board of Directors. Judge Freeman-Wilson has previously served as Chief Executive Officer of the National Association of Drug Court Professionals (NADCP) and Executive Director of the National Drug Court Institute.

“I have followed the progress of Hythiam, and the deployment of the PROMETA Treatment Programs since 2004 and I have been increasingly impressed with management’s willingness to work with the public sector in order to demonstrate the value of this integrated approach,” said Judge Freeman-Wilson. “Having become privy to outcome data from various pilots and studies, as well as the recent third-party validation of the pharmacological portion of PROMETA, I feel that it is our collective responsibility to provide information and access to all adjuncts to treatment for all members of society. This is especially important for the disenfranchised and those in the criminal justice system.”

“As many people do, Judge Freeman-Wilson initially approached the company and the protocol cautiously, but her guidance has helped us become more confident in our current approach towards service to the government sector,” said Terren Peizer, Chairman and CEO of Hythiam. “We welcome her to our team and look forward to her continued mentorship.”

Prior to joining the NADCP, Freeman-Wilson served as Attorney General for the State of Indiana, where she served as the first Vice Chair of the Indiana Tobacco Control Board. Prior

to that, she served as Presiding Judge of Gary, Indiana’s Municipal Court and initiated the first drug treatment court in the State of Indiana. Before her recent government positions, she was Director of the Indiana Civil Rights Commission. Judge Freeman-Wilson received her Bachelor of Arts degree from Harvard College and her Juris Doctorate from Harvard Law School.

About the PROMETA^® Treatment Program

Hythiam’s PROMETA^® treatment programs are designed for use by healthcare providers seeking to treat individuals diagnosed with dependencies to alcohol, cocaine or methamphetamine, as well as combinations of these drugs. The PROMETA treatment programs include nutritional supplements, FDA-approved oral and IV medications used off-label and separately administered in a unique dosing algorithm, as well as psychosocial or other recovery-oriented therapy chosen by the patient and his or her treatment provider. As a result, PROMETA represents an innovative approach to managing alcohol, cocaine, or methamphetamine dependence that is designed to address physiological, nutritional, and psychosocial aspects of the disease, and is thereby intended to offer patients an opportunity to achieve sustained recovery. To learn more, please visit www.prometainfo.com.

About Hythiam, Inc.

Integrating both medical and psychosocial treatment modalities, Hythiam, Inc. provides comprehensive behavioral health management services to health plans, employers, criminal justice, and government agencies. With a focus on using the latest medical and health technology towards improved outcomes and out-patient treatment, the company manages all behavioral health disorders. The company also researches, develops, licenses and commercializes innovative and proprietary physiological, nutritional, and behavioral treatment programs. Hythiam currently offers disease management for substance dependence built around its proprietary PROMETA treatment programs for alcoholism and dependence to stimulants. The PROMETA treatment programs, which integrate behavioral, nutritional, and medical components, are available through licensed treatment providers. Hythiam does not practice medicine nor manufacture, distribute, or sell any medications and has no relationship with any manufacturers or distributors of medications used in the PROMETA programs. For further information, please visit www.hythiam.com.

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company’s control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history

and lack of statistically significant formal research studies, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the healthcare industry; and additional risks factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at http://www.sec.gov.

###