AFAIK this is how its handled almost everywhere in Europe. For example here in Germany there are many free Methadone programs available in every big city.
I work in a office in the center of Berlin, so I see some junkies on a weekly basis. Many of them will have rapidly declining health, but I also often see the results of government work. Some ask for help by the government and then they are put into programs, have a apartment after a while and get enough money to afford healthy food etc. They are usually gone from the streets in a couple of months. It seems to be cheaper than to have a junkie epidemic, it makes the country undoubtedly way more safe than the US for everybody.