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. Insurance coverage for rehab has increased, but scandals abound as shoddy facilities opened and patient brokering, overbilling and deceptive marketing became common. Reforms are pending. Private equity firms are investing.
This new study examines the nature of the business, types of rehab, reasons for the renewed growth of addiction rehab services since the Great Recession and the opioid crisis, national receipts/growth from 1983-2018, 2020 and 2025 forecasts, average facility revenues and operating ratios, industry structure and participation by non-profit, for-profit, inpatient and outpatient programs, extensive drug/alcohol abuser demographics. Discussion of the Florida Model, destination markets in FL and CA, effects of increased volume due to the Affordable Care Act, industry history and evolution, and discussion of all major industry trends.
Includes all the pertinent data compiled by SAMHSA’s latest government survey, data from the NIDA, NAATP, state agencies, and more.
9 in-depth company profiles are provided for: Hazelden Betty Ford Foundation, CRC Health Group, Promises Behavioral Health, Passage Malibu, American Addiction Centers, The Caron Foundation, Comprehensive Care Corp., Malibu Horizon Rehab Center, and Behavioral Health of The Palm Beaches.
COVID-19 Update July 2020:
The publisher has issued a free July 2020 update for this report, analyzing the probable impacts of the Covid-19 pandemic on drug & alcohol addiction treatment centers.
It discusses: operational changes, the shift to virtual visits, a shift to more outpatient care, impact on federal state and local program funding, findings of recent industry surveys, examples of reduced caseloads and state actions, potential facility closures, how the industry may actually benefit from the pandemic, and revised 2020 and 2025 market growth forecasts.
Key Topics Covered:
Introduction, Sources & Methodology Used
Executive Overview of Major Findings
Discussion of scope of U.S. alcohol and drug addiction problem, cost to society, impact of treatment, structure of treatment providers industry (no. of facilities by type), major industry trends and issue, industry size, growth and forecasts (1983-2025 F), effects of recessions and Affordable Care Act, outlook for 2020, list of leading treatment organizations/companies, user demographic highlights of 2019 SAMSHA government survey regarding scope of drug & alcohol abuse/usage/persons in treatment, client & facility characteristics – highlights of all report chapters.
Nature and Structure of the Industry
- Discussion of different types of centers (% for-profit, non-profit, private/government, by primary focus), typical programs offered, treatment programs by type site
- Discussion of indicators of program quality
- Inpatient vs. outpatient care, etc. (no. of facilities, patients served, occupancy rate, industry revenues, average revenues per facility, mean no. of clients per facility,
- Typical cost of rehab
- Demand for care: no. of persons that need treatment
- Discussion of the industry’s major problems and scandals (deceptive marketing, overbilling, patient brokering, fraud, etc.)
- Various types of rehab (drug, alcohol, sex addiction, gambling, Internet, post-traumatic stress),
- The 6 major types of rehab (philosophies – faith-based, evidence-based, 12-step, etc.)
Demographics -SAMHSA Survey Findings – Data on Substance Abusers
- Key statistics about national costs of drug & alcohol abuse, hospitalizations, opioid use
- Discussion of trends in illicit drug use, persons age 12 or older: (usage of marijuana, cocaine, heroin, hallucinogens, methamphetamine, nonmedical use of prescription drugs – number and percent of persons)
- Discuss trends in alcohol use, persons age 12 or older: (heavy drinking, binge drinking, current use – number and % of persons)
- Marijuana use – discussion, number and % of persons
- Cocaine use – discussion, number and % of persons
- Heroin use – discussion, number and % of persons
- Methamphetamine use – discussion, number and % of persons
- Inhalants use – discussion, number and % of persons:
- Hallucinogens use – discussion, number and % of persons:
- Psychotherapeutics use – discussion, number and % of persons:
- The Opioid epidemic: discussion, number and % of persons
Major Industry Trends & Issues
- Discussion of insurance fraud and overbilling, patient brokering, deceptive marketing
- Discussion of The Affordable Care Act and the Mental Health Parity and Addiction Equity
- Act and how it has upended the industry’s business model
- Compliance with evidence-based practices is spotty
- Private equity investors pour money into addiction treatment
- Attempts at reform: actions by Google, The Federal Support Act
- Discussion of The Opioid Crisis & Treatment, medically assisted treatment.
Industry Size, Growth, Segments, Forecasts
- Summary: Total industry size, estimates by government vs. other mkt. research firms, public vs. private spending/funding
- The treatment population: no. and % of people actually receiving treatment: 2018, payment by source of funds
- Number of treatment facilities in U.S., % treated by type facility, median no. of clients (total and by outpatient, residential, hospital, detox)
- Estimates of industry size ($ revenues): 2019 SAMHSA report, growth of private, public, out-of-pocket spending 2020 outlook and effect of Affordable Care Act, projected increase of persons in treatment, effects of recessions
- 2025 Forecast: major trends discussion: reliance on public financing, Medicaid, increased private insurance coverage, E-health, effect of recessions
- Discussion of Medicaid and Other State and Local Financing.
- The high-end market segment: discussion of the private pay marketplace, $ value
- Destination markets: discussion of the South Florida market, the “Florida Model”, history
- Discussion of the gambling addiction market: no. of problem gamblers, amount spent per year
- Sex addiction: discussion of why it has come into the mainstream, Tiger Woods and other celebrity publicity, types of treatment programs, list of top treatment centers.
Treatment Facility Operating Ratios
- U.S. Census Bureau ratios for mental health & substance abuse facilities (2017, 2012, 2007) – no. of facilities, revenues, avg. revenues per center, payroll costs, no. of employees (outpatient vs. inpatient centers) – summary
- Discussion of no. of clients per facility, mean cost of care, cost to treat per person, outpatient care
Competitor Profiles of the Leading Treatment Organizations and Multi-Center Chains
(For each organization, a discussion of: history/founding, description of major programs, services, estimated/actual revenues, no. of centers, fees, facilities operated, mergers, sold facilities, recent developments.)
- Hazelden Betty Ford Foundation
- CRC Health Group
- American Addiction Centers
- Promises Behavioral Health
- Passage Malibu
- The Caron Foundation
- Comprehensive Care Corp.
- Malibu Horizon Rehab Center
- Behavioral Health of The Palm Beaches
Directory of Industry Reference Sources
- Name/address/phone of drug & alcohol abuse-related industry trade associations, government reports, major EAP industry trade journals, hotline phone numbers, etc.
- List of state substance abuse agencies
For more information about this report visit https://www.researchandmarkets.com/r/1id0tg