Treatment FAQ

how many treatment centers have gone out of business

by Carol Schaden III Published 3 years ago Updated 2 years ago
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According to the National Association of Addiction Treatment Providers (NAATP), about 20% of its provider member—which range from the largest network in the country, with about 180 treatment centers, to individual clinics—have had to close their facilities either completely, or partially.

Full Answer

How many addiction treatment centers are closing in America?

According to the National Association of Addiction Treatment Providers (NAATP), about 20% of its provider member—which range from the largest network in …

How big is the addiction treatment industry?

Datapro Within the last year, dozens of addiction treatment centers have gone out of business, even though the demand for treatment continues to rise. Increasing regulations and decreasing reimbursements are making it harder for centers to succeed financially. By falling short of earning a profit, many centers are operating at a deficit.

How many people go to substance abuse treatment in the US?

A New Addiction Crisis: Treatment Centers Face Financial Collapse. Costs have gone up for addiction treatment centers in recent months, as they …

Are addiction treatment centers in financial trouble?

Mar 21, 2022 · Unfortunately, less than 42% of the individuals who enter treatment for drug and alcohol abuse complete it. 10. Individual success in treatment depends on several factors, including: 11. The frequency, duration, and type of drug used. Criminal behaviors. Family and social environments.

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Why is it important to have a healthy business?

At the end of the day, a healthy business provides us with the revenue and ability to retain quality talent that drives clinical outcomes. Too many centers tend to be heavy on clinical and lacking the business acumen, or the exact opposite.

Who is Nick Jaworski?

Nick Jaworski is the CEO of Circle Social Inc, a company he has grown to be one of the largest providers of behavioral health marketing and consulting firms in the country by focusing on data, results, innovation, and patient-centered strategy. He regularly speaks nationally and internationally on the topics of business growth, data, and addiction. Those interested in connecting with him can most easily find him on LinkedIn. When he's not online, he spends time with his favorite person in the world--his daughter.

Who is the vice president of the American Society of Addiction Medicine?

Olsen, who is also vice president of the American Society of Addiction Medicine, says many providers are in the same boat. Some treatment centers that accept Medicaid patients and and those covered by the Children's Health Insurance Program may be eligible for $15 billion in emergency relief.

How much money did Ingoglia request?

Ingoglia's group and other treatment advocates requested $38.5 billion in emergency funding from Congress, so far unsuccessfully. In addition, he says, a plunging economy also threatens future public funding that many community treatment providers rely on.

Who is rehab counselor?

Rehab counseling at some centers is often practiced by “veteran counselors” who overcame substance abuse problems of their own. These counselors may fervently believe in their methodology, even as state governments (like Oregon) have started to cast a skeptical eye on some in the industry.

What is spontaneous recovery?

The Spontaneous Recovery Studies suffer from differences in the definitions of important terms such as “addiction,” “treatment” and “recovery.”. The use of reports of past behavior and relatively short follow-up periods are problematic as well.

Is there a standard metric for rehabilitation?

The answer is not very straightforward. According to TIME magazine, there is no standard definition of “rehab,” so there is no standard metric of success for rehabilitation centers. Some facilities simply measure how many of their patients complete their programs; others consider sobriety in the follow-up months and years after “graduation” as the threshold for success.

Why are alumni programs important?

Alumni programs provide accountability and allow individuals to remain actively involved in a supportive recovery community. A good rehab will help the individual to cultivate or connect with this type of community during treatment because that gives the individual the best chance for continuity upon leaving rehab.

Is there a 12-step program?

Joining Johnson’s voice, many who object to the rigid principles of 12-Step programs (for example surrendering to a higher power), point to cases of “spontaneous recovery,” as evidence that 12-Step is only one approach in the mix. Many cite a small 1985 Journal of Studies on Alcohol study in which drinkers were able to walk away from their behavior of their own volition via a combination of willpower, developing a physical aversion to alcohol after bottoming out, and experiencing some kind of life-changing experience to support the idea that 12-Step or rehab in general isn’t a must in every case.

What is CARF accreditation?

The Commission on Accreditation of Rehabilitation Facilities, known as CARF, is a nonprofit organization that offers accreditation of rehabilitation and behavioral health centers. In order to receive a CARF accreditation, facilities must meet a variety of requirements.

Is there a cure for addiction?

As addiction is a relapsing, chronic disease, per NIDA, there is no cure. The condition can be managed, and lifetime recovery is possible, but there is no magic treatment that will make addiction disappear.

How many substance abuse facilities are there in the US?

In 2018, there were 14,809 substance abuse facilities in the U.S., with the highest number found in the state of California.

How much money does addiction treatment make?

American Addiction Centers, one of the largest treatment organizations in the U.S., reported revenue of almost 296 million dollars in 2018, a substantial increase from the 212 million dollars reported in 2015.

How many people are addicted to alcohol?

This article is more than 6 years old. The National Council on Alcoholism and Drug Dependency estimates that over 23 million Americans (age 12 and older) are addicted to alcohol and other drugs. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), just under 11% ...

Who is Lance Dodes?

Lance Dodes, MD ‒ Addiction Expert & Author Harvard Medical School Graduate in The Business of Recovery. As a part of the annual film festival in Southern California, the film is being shown again Tuesday evening and the producers are working toward a broader, public release later this year.

Why is the movie "The Last Jedi" so timely?

The film is timely because the market does seem poised for accelerated growth based on a number of key attributes. A real‒estate component that can easily scale to any size ‒ including the private, single family residence (called "sober living homes" ‒ by one estimate over 10,000 in Arizona alone ).

Is AA a treatment?

AA is not really a treatment ‒ it's a fellowship. If you go to your doctor to be treated for cancer or heart disease you expect your doctor to be doing what the science says is the best treatment available for what you have. That has not been the standard in addiction treatment.

Is 12 step treatment good?

Almost all residential treatment programs in the United States are 12 Step based, so their effectiveness will depend entirely on whether 12 Step programs work and the statistics for AA are not good. It is helpful for 5‒10% and that's a good thing.

How many people have substance use disorder?

Over 23 million Americans experience a substance use disorder (SUD), among whom only 10% access treatment. Depending on the severity of their disease and access to economic and social supports, many people with SUD cycle in and out of emergency departments, addiction treatment centers, homeless shelters and correctional facilities like jails ...

What are the risks of a SUD?

Specific Considerations for People with Substance Use Disorders. Many individuals with SUD have chronic illnesses such as heart, kidney and liver disease, which are risk factors for developing COVID-19 infection.

Do treatment centers operate without medical staff?

“Many treatment centers unfortunately operate without medical staff or the level of physician involvement that ASAM criteria would require,” according to Kelly Clark, MD, MBA, former ASAM President and founder of Addiction Crisis Solutions. “For the health of patients, it is imperative that infection control precautions be followed.”

Is addiction a sign of weakness?

Addiction is a chronic medical disease of the brain. It is not a sign of moral weakness or failure. Getty. The American Society of Addiction Medicine (ASAM) has issued clinical guidance on their webpage, based on federal recommendations.

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Why Is This Happening?

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There are several general trends producing this effect, as well as some more center-specific ones that we’ll go into detail on more below. The general trends is that new locations are spreading out across the US. For example, the Midwest and Northeast, where treatments centers were few and far between, now have numer…
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Overreliance on Lead Generation

  • Overreliance on lead generation is the single biggest mistake failing centers have made. Most of the centers that closed down in the last 6 months were overly or entirely dependent on Adwords for admissions. Some depend heavily on rehabs.com or buying calls instead of partnering with proven experts in rehab marketing. As we’ve written before, this is just stupid and bad business. …
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Poor Reputation Management

  • Try googling your center once. What pops up on the first page of results? I bet you at least 3 of the results are from review sites like Yelp, Cite Health, Glassdoor, or Google Reviews. Do you have more than 3 stars? Most centers don’t, and that’s a huge problem. We’ve seen centers go from full to 50% census in less than a month after too many negative reviews appeared at the top of the s…
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Lack of Relationship Building with Professionals and Alumni

  • The best centers with the most stable censuses are ones who have built incredibly strong relationships with both professional partners and their alumni, Professional partners can be anyone that might send you a referral – therapists, other centers, criminal attorneys, church leaders, athletic directors. These people often do not know where to turn when someone comes …
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The Gold Standard – Clinical Excellence Backed by Outcomes Data

  • You know that JCAHO accreditation displayed so proudly on your site, the one that’s meant to symbolize a high quality of care? That is your absolute key to the long-term success of your center. Call and inquiry generation is an unsustainable model for long-term growth, and today’s patients and their families are getting much smarter about what quality treatment looks like. Wh…
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Good Treatment and Good Businesses Go Hand in Hand

  • At the end of the day, a healthy business provides us with the revenue and ability to retain quality talent that drives clinical outcomes. Too many centers tend to be heavy on clinical and lacking the business acumen, or the exact opposite. A good balance of both leads to a positive feedback loop where better outcomes lead to a growing center. Does that sound like a whole lot of stuff you’re …
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