Over the past few years, investors have seen lucrative opportunities in reorganizing the highly fragmented addiction treatment industry, consisting of thousands of mostly small clinics and solo providers and estimated to total $35 billion in annual revenue.
Is the for-profit rehab industry driving the culture of addiction treatment?
Some who have worked in the for-profit rehab industry agree the culture is still often driven by profit rather than proper medical care. "It's horrific, there isn't really any reform," said Dr. Howard Samuels, who ran high-end rehab clinics in California until last year. He still maintains a private therapy practice for people in recovery.
What is the rehab center industry?
The rehab center industry comprises of clinics that have a medical staff who primarily provide outpatient services that are related to diagnosis as well as the treatment of alcohol, drugs and other substance abuse.
What is the size of the drug rehab industry?
1. Addiction rehab market size: Marketdata estimates that the drug, alcohol and other addictions treatment industry will be worth $42 billion this year. Moderate but steady 5. 2% annual growth in revenues is forecast through 2025, reaching $53 billion.
What is the annual growth rate for the outpatient rehab industry?
The top 50 outpatient rehab centers account for less than 20% of segment revenue, while the top 50 residential rehab centers account for 25% segment revenue. Also, 60% of the firms in this industry have more less than 20 employees. The annual growth projected for this industry for the period of 2010 to 2015 is 1.8%.
How much is the rehabilitation industry worth?
The U.S. outpatient rehabilitation market is estimated to be a $30 billion industry with a projected annual growth rate of five percent or higher. The sector is also highly fragmented, with no company controlling significant market share.
What rehab has the highest success rate?
Roughly 80 percent of patients report benefiting from improved quality of life and health after completing drug and alcohol rehab. Florida has the highest success rates of drug rehab compared to all other states.
How many rehabs are in the United States?
Drug, alcohol and other addiction rehab in the United States is big business - $42 billion this year. There are now 14,000+ treatment facilities and growing. A total of 3.7 million persons received treatment, but many more need it and facilities are filled to capacity.
What are the two main Accreditation of Rehabilitation Facilities?
Accrediting Bodies. The two most prominent accrediting organizations for addiction rehabilitation programs are the Commission on Accreditation of Rehabilitation Facilities (CARF) and the Joint Commission, previously known as JCAHO.
Is rehab more effective than jail?
Drug Rehab: An Effective Alternative Instead of incarcerating individuals with substance use disorders, sending them to a drug rehab program is a far more effective solution. Drug rehab programs exist for the sole purpose of helping people separate from drugs and alcohol.
What is the success rate of AA?
Alcoholics Anonymous' Big Book touts about a 50% success rate, stating that another 25% remain sober after some relapses. A study conducted by AA in 2014 showed that 27% of the more than 6,000 members who participated in the study were sober for less than a year.
What is the most popular program for recovering alcoholics?
Alcoholics Anonymous (A.A.)Alcoholics Anonymous (A.A.), arguably the most well-known alcohol recovery program, is based on a set of spiritual principles that provide tools for living sober.
How much money does the US spend on addiction?
Substance abuse costs our Nation over $600 billion annually and treatment can help reduce these costs.
How many residential treatment centers are there in the US?
28,900 facilitiesThe number of residential treatment centers in the United States is currently estimated at 28,900 facilities.
How much does CARF certification cost?
CARF fees are based on the number of surveyors and days needed to complete the survey. Application fees are currently $995, and survey fees are $1,670 per day without the additional cost of travel, lodging and etc.
What is the difference between Jcaho and CARF?
The Joint Commission in particular is more medically-based, while CARF is very active in the healthcare market. 5. Determine the cost – accreditation fees vary between the three bodies, but should not be the sole consideration.
What is CARF stand for?
Commission on Accreditation of Rehabilitation FacilitiesCARF stands for Commission on Accreditation of Rehabilitation Facilities. It is a private, not-for-profit organization that accredits rehabilitation programs with some of the following services: Adult day services.
What are the factors that drive the growth of outpatient rehabilitation centers?
Rise in the unhealthy lifestyles, increase in the aging population leading to neurological disorders, increase in a number of chronic disease such as cancer, Alzheimer's disease, etc. are some of the major factors driving the growth of the outpatient rehabilitation centers market during the projected period.
What is outpatient rehabilitation?
Outpatient rehabilitation centres provide evaluation and treatment for the individuals who have cognitive limitations due to chronic or acute problems, orthopedic and neurological disorders. Outpatient rehabilitation treatment programs target the treatment of chronic conditions, such as pain disorders, headaches, multiple sclerosis, arthritis, and cancer. Outpatient rehabilitation centers offer low-cost treatment to the patients. Outpatient rehabilitation therapy is beneficial for patients with a range of conditions, including injuries due to car accidents, stroke or heart attack, etc.
How much is the addiction rehab industry worth?
1. Addiction rehab market size: Marketdata estimates that the drug, alcohol and other addictions treatment industry will be worth $42 billion this year. Moderate but steady 5.2% annual growth in revenues is forecast through 2025, reaching $53 billion.
How much is drug rehab worth in 2020?
by John LaRosa, on February 5, 2020. Drug and alcohol addiction rehab in the United States is big business — worth $42 billion this year. There are now 15,000+ private treatment facilities and growing. The combination of increased insurance coverage under the ACA and Medicaid, coupled with the opioid epidemic, is fueling demand for treatment.
How many people entered the system in need of substance abuse treatment?
2. Reforms needed: With passage of the Affordable Care Act, 3-5 million new patients entered the system in need of substance abuse treatment, resulting in the opening of more treatment centers and “sober homes,” many of which engage in overbilling, patient brokering, and deceptive marketing.
How many people received treatment for addiction in 2012?
According to the Substance Abuse and Mental Health Services Administration (SAMHSA), just under 11% ( 2.5 million) received care at an addiction treatment facility in 2012. SAMHSA also estimates that the market for addiction treatment is about $35 billion per year.
Why is the movie "The Business of Recovery" so timely?
The film is timely because the market does seem poised for accelerated growth based on a number of key attributes.
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% ...
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.
Is the critical assessment of addiction treatment timely and sobering?
The critical assessment of addiction treatment is both timely and sobering. 12 Step programs are very popular, but if you're looking for figures and randomized trials and scientifically rigorous studies of how they work and for how many people they work ‒ you will not find those studies.
How many states have rehab reform?
While 29 states have rehab reform legislation in place (including licensure and prohibition of patient brokering where facilities pay a referral fee to “ junkie hunters ”), SB636, a bill proposed to address the issue in hard-hit California is stalled—even as the state is increasingly not just facing disruption, but often utter chaos.
What is the Affordable Care Act?
The Affordable Care Act and the Mental Health Parity and Addiction Equity Act has completely upended the business model of many old-guard institutions, with formerly cash-up-front-driven centers like Betty Ford now rarely finding clientele who want to pay out of pocket.
How many people are addicted to heroin?
Third, more people are in need of treatment than ever before thanks to the opioid crisis, with 2 million Americans addicted to prescription opioids and at least 1 million to heroin, according to the Centers for Disease Control. Fourth, the $35 billion rehab industry is increasingly being exploited by individuals who are taking advantage ...
How many states are suing drug companies?
More than 100 states and cities are now suing the drug companies and distributors that have introduced opioids into the market (with the National Institute on Drug Abuse estimating that 75 percent of people who enter treatment for heroin first took an opioid legally from a doctor’s script).
Is Betty Ford Center hard won?
On the other hand, for facilities such as the Betty Ford Center, once flush with thousands of out-of-pocket dollars for re hab, insurance dollars are more hard-won monies than in the past when patients forked over several tens of thousands of dollars without any insurance haggling required.
Did Betty Ford do marketing?
They had an excellent figurehead in Betty Ford. They didn’t do a lot of marketing. She was very involved in the alumni so they had all these little disciples all over the world where clients were coming in. It was world-class, all-cash pay. What they did worked for a long time, but everything has changed.”.
Is Betty Ford covered by insurance?
Now that the majority of Hazelden Betty Ford’s clientele is covered by insurance, it has led to inevitable belt-tightening measures, Motu says, although not in the realm of patient services. Indeed, when it comes to patient care, their facilities are at currently at between 90 and 95 percent capacity.
Why is financing important for rehab?
Financing your rehab center business is very important because no business or business idea can thrive without finances, no matter how noble or fantastic the business is. Finance helps the business not only become a reality but also to thrive and grow.
When will rehab centers be fully recovered?
Even though a downturn in the economy plus a drop from federal funding such as Medicare and Medicaid affected the revenue and invariably wages for those in this industry, the rehab center industry is slowly on its path to total recovery and is therefore projected to be fully recovered before 2021.
What to consider when starting a rehab center?
Another factor to consider when starting your rehab center business is the location where the rehab will be located in. even though it isn’t compulsory that your rehab center be residential; however most of the successful rehab centers are those where patients can stay for a predetermined time and then leave.
What is a business plan for rehab?
A business plan is the document that will show any financial institution how serious you intend taking your rehab center business.
What are the specializations of rehab?
Regarding the areas of specializations in the rehab business industry, some of the specializations are; alcohol and drug addiction. internet addiction. sex addiction.
How many employees do you need to run a rehab center?
This would be about 10 to 20 employees.
Why do you have to start a rehab center?
Before starting a rehab center business, you have to be sure that it is a business you are ready for, because apart from making profit like any other business, the primary cause of the business aims at achieving a noble cause of ensuring people become free of their addictions whatever they may be.
What did the ACA do to the recovery industry?
Simultaneously, the ACA extended health coverage to millions of previously uninsured Americans and mandated the coverage of substance abuse treatment . This combination of widespread need and broadened coverage has dramatically expanded demand for treatment – and permanently altered the recovery industry in the process. ...
What percentage of Wyoming treatment centers offer free services?
Wyoming was the notable exception to this rule: Of all the state's treatment centers, 72 percent offered a free service. Indeed, these figures indicate that access to treatment at no cost may be saving lives in the Equality State.
What are the twin forces that have transformed addiction treatment?
In recent years, America's addiction treatment industry has been transformed by twin forces: the opioid epidemic and the Affordable Care Act. Overdose deaths have climbed steadily since the early 2000s, creating a crisis of unprecedented proportions. Simultaneously, the ACA extended health coverage to millions of previously uninsured Americans ...
How to start a drug rehab business?
1. Plan to Start with One Facility – Even if your goal is to invest in 20 drug rehab centers, start with one first to get to know the business, then scale what works. Trying to do too much at once is a recipe for disaster. 2.
What happens if rehab doesn't convey trust?
At the end of the day if your rehab does not convey trust then the clientele and Google and the influencers won’t hire you. For example, trust is what gets a website visitor to a phone call. Things like reviews, staff, images, website structure, branding, page speed, colors (yes colors), the person answering the phone all convey trust.
Can you change rehab levels?
However, if you are buying a rehab facility, some places are strictly set up as either inpatient or outpatient. If that is the case, there would be no reason to change the levels of care until you have seen many months or a year of success.
Is drug rehab a small industry?
The drug rehab space has many little nuances that are difficult to articulate but certainly show up when it comes to execution. The industry is a small industry and the old adage “everyone knows everyone” is an understatement.
Is MAT becoming more prevalent in the industry?
MAT is becoming more prevalent in the industry. If you aren’t getting better outcomes you can get slaughtered. If you don’t have any experience in the addiction treatment field you had better hire consultants and pay for the experience.
Is rehab undercapitalized?
Most rehabs are undercapitalized. Many of the rehabs have trouble filling their beds and keeping them full. Same holds true for OP’s, IOP’s and PHP’s. The few that are highly profitable seem to be snapped up quickly. Rule #2: Addiction Treatment Clinical Care Counts.
Key Players Covered
- Some of the major companies that are present in the global outpatient rehabilitation centers market are Accelerated Rehabilitation Centers, Ltd, AIM Health Group Inc., LHC Group, Inc., Select Medical Holdings, Physiohealth.in, Trilogy Health Services, LLC., Senior Care Centers of America, Inc., among others.
Segmentation
- Key Insights Advances in Outpatient Rehabilitation Therapies and Programs Recent Key Industry Developments – Mergers, Acquisitions, And Partnerships.
Regional Analysis
- Geographically, the global outpatient rehabilitation centres market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America followed by Europe are likely to be the two largest shareholders in the outpatient rehabilitation centres market owing to the rise in the prevalence of neurological dis...
Key Industry Developments
- In March 2018, Stepping Stone of San Diego announced the opening of the Stepping Out alcohol and drug treatment program serving the LGBTQ and HIV/AIDS-affected communities. This outpatient program...
- In January 2019, Crossroads - David Lawrence Center launched a new outpatient medication-assisted treatment program to fight opioid addiction.
- In March 2018, Stepping Stone of San Diego announced the opening of the Stepping Out alcohol and drug treatment program serving the LGBTQ and HIV/AIDS-affected communities. This outpatient program...
- In January 2019, Crossroads - David Lawrence Center launched a new outpatient medication-assisted treatment program to fight opioid addiction.
- In April 2017, Fusion Recovery San Jose introduced a flexible intensive outpatient (IOP) program. Combination of individual therapy with a range of holistic recovery services, with a less restricti...
