Insights Into the Billion Dollar Rehab Industry and How to be a Part of the Profit
Currently, the drug rehab industry is seeing a dramatic increase in patient intake and treatments. The drug rehab industry brings in billions each year due to the 20 million people currently fighting addiction with the assistance of treatment programs.
The key success factor for treatment centers is to learn how to earn profits and maintain a high quality of service to provide individuals with the options they need to complete recovery programs successfully. Learn how the right partnership with a drug rehab marketing specialist can increase profits and provide more income for these necessary rehab facilities.
How Much Does Rehab Cost?
The cost of a quality drug rehab program depends on a few factors: the type of facility and the location. Some other elements in the price of a rehab facility treatment program can include the following:
The length of time the patient stays in the program. Some drug rehab programs only last for 30 days, while others last for 90.
The overall size of the program. Some programs are small and only have a few patients enrolled at one time, while others are larger and treat many.
Some programs have various amenities that make their stay more enjoyable. The number of amenities and activities also affect the price.
Details aside, typical treatment programs can cost around $14,000 to as much as $27,000 for a one-month program. Other expenses must also be considered, including outpatient therapies and treatments following the rehab program. Individual sessions can cost as much as $500 each in some cases.
Detoxification, which can range between $600 and $1,000 per day, is an additional cost. The patient's insurance often covers most of it, but there may still be some out-of-pocket expenses.
Types of Rehab Explained
There are a few types of rehab treatment options. They vary in the level of care and intensity of the approach. Most treatment programs offer inpatient and outpatient programs to provide a customized level of care and attention.
The 30-Day Drug Rehab Program
The standard 30-day treatment program is an inpatient option for those facing additional issues. This type of program combines both one-on-one and group therapy sessions that benefit most patients, and they typically enter a 12-step or similar program to facilitate their rehab journey. These programs provide participants with the coping skills and tools they need for long-term recovery and to prevent future relapses.
Another common feature of the 30-day program is a lockdown, which eliminates outside influences for a more intensive approach. Visitors are usually not allowed during the 30 days, and there is limited contact with the outside world. Some facilities allow their patients more privileges as the treatment process progresses and they show improvements.
However, some programs allow the patient to stay or leave at any point. The treatment facility's methods are outlined in the program information provided on their website, through a representative phone call, or in admission packet details.
The 60-Day Rehab Programs
Those requiring a more comprehensive, extended rehab program can choose 60-day treatment options. The inpatient program provides one-on-one individual counseling and12-step programs, group therapy, and family therapy approaches to help patients get the most benefit out of their time.
This inpatient approach offers each person the chance to escape the temptations they face in the outside world, allowing them to focus on their recovery. In some instances, individuals may have external obligations preventing them from seeking inpatient options, so there are also 60-day treatment programs offered on an outpatient basis. This option may require some hospitalization or other intensive measures during that time to get the best results.
Similar to the 30-day treatment programs, the patient goes through the detox process and has access to individual and group therapy sessions. During their time at the center, however, they have access to family therapy, which has a high success rate for helping prevent relapses and creating a better support system for patients. Many programs also offer life training skills to help individuals get a foothold on their lives and finances. Finally, they provide aftercare planning, which gives the patient a roadmap through sobriety and a recovery plan that works for their needs.
The 90-Day Rehab Programs
The most extended rehab programs are usually 90 days and offer an array of treatment options for those who need them. Those who repeatedly have issues with addiction and need more time to pursue their journey to sobriety may choose this option.
This program allows them to remove themselves from their troubled situation and a new space to focus and regain control. For many, there is a residential setting, but some still have the typical 30- and 60-day inpatient setting.
Residential rehab has many benefits for those with a severe or ongoing addiction problem who need the most immersive experience to recover. Many of these programs have 24-hour supervision and on-site medical services.
Living with residents who also have the same issues provides a support system that facilitates the recovery process. After the program is completed, most have outpatient therapy once they leave to ensure they still have the treatment and support they need as they transition back to regular life.
During the detox phase of the 90-day treatment program, there is usually a much longer time to complete the process, which takes up to several weeks. Determining factors include the severity of the addiction and the substance. This detox process is critical to the effectiveness of the treatment that follows. Behavioral therapy may also be offered during and after this time.
Additionally, there are many other aspects of treatment to give patients the best experience, which can include cognitive-behavioral therapy, motivational therapy, psycho-educational instruction, holistic programs, and contingency management. There may also be some faith-based programs depending on the type of center. Many programs also offer some patients mental health services as a part of their treatment during and after their time at the facility.
How Rehab Centers Get Paid
In most instances, rehab facilities generate revenue through the patient's insurance or through self-payment. The bulk of the treatment is financed directly by the patient's insurance, Medicaid, treatment vouchers, or other similar sources. Although insurance is a major source of payment, many patients also finance their treatment out-of-pocket.
Self-Paid Rehab
Drug rehab centers and facilities need to make a profit, which is essential for operation. The presence of these facilities and programs helps communities and betters families, which makes them necessary. In most cases, the primary focus is on the quality of care and service, however, and that's what really matters.
Despite these details, ethical concerns are a prime topic for many. Treatment programs must consider them while remaining profitable and optimizing the business end of drug rehab facilities. One consideration is the payment sources for these programs. Knowing how the patient pays for the treatment and where these organizations are generating revenue is imperative.
Generally, self-pay addiction treatment programs offer patients more flexible options. It's important to understand that the cost of these programs can become a burden to families even after the initial inpatient treatment process. Patients must be vigilant when choosing a self-pay treatment program. Some are not licensed by the state in which they are located or may not be appropriately accredited.
Insurance-Paid Rehab
Those treatment facilities that accept insurance are attractive to patients, especially if they're unable to pay for treatment otherwise. There are some differences in their designations, though. The in-network or contracted programs are the least costly for patients and cover the bulk of services and expenses.
The facility generally doesn't make as much money from these patients, as insurance only pays for what's strictly necessary, which means less revenue for the treatment programs. However, accepting insurance means more patients. There's a fine line between earning revenue and offering appropriate treatment options for patients paying with insurance that covers inpatient and outpatient addiction treatment services.
Out-Of-Network Insurance-Paid Rehab
If the patient chooses to admit themselves into an out-of-network program, their insurance may still cover a portion of the bill. However, insurance coverage and terms vary greatly. Getting the best coverage or affordable care may not be possible if treatment occurs at an out-of-network rehab center. The patient should contact the insurance provider to determine how much they pay. Some individuals may need to pay most of their rehab bill out-of-pocket.
Ethical Challenges Within the Industry
Although rehab facilities are necessary, leadership faces an ethical crisis in terms of the methods used to conduct business. For example, many individuals who answer hotline phones for these facilities aren't adequately trained and do not have medical knowledge or expertise. The lack of medical background is also an issue because a person's medical history and current details are all essential in determining whether the patient is a candidate for these treatment programs.
Marketing tactics used by many treatment programs have also come under fire. They tend to be overly aggressive and demanding. Often they ask for large sums of money upfront before the treatment center accepts the patient. In fact, some programs aren't focused on the critical aspects of admission, which are usually medical-related. Instead, they focus on amenities and luxury to upsell the patient.
Some "luxury" treatment facilities focus more on the money-making aspect of business and less on patient health and medical well-being. Their methods are to make the patient feel like they are on vacation rather than focusing on the core addiction issues. Many patients relapse immediately after leaving the facility because they lack the coping skills and aftercare tools they need to prevent a dangerous relapse. Many who relapse after treatment face severe medical consequences or even death.
Treatment ethics in these cases are second to making money and providing luxury and extra services. This issue puts pressure on medical-focused programs and cuts their profit margins.
However, there are methods to overcome the effects of luxury-focused treatment centers, specifically hiring an ethically focused rehab marketing team to match your desire to help. You can team up to provide better solutions and a better way to reach patients who need their services the most.
How DRA Can Help
The Drug Rehab Agency uses a full-service, holistic approach to assisting rehab facilities. Our consulting services focus on more than marketing your center. You also benefit from assistance with set-up, hiring, licensing, and treatment planning that you need to guarantee success. Our consultants understand the ins and outs of creating a sound business model for drug and alcohol rehabilitation centers. We have helped the largest addiction organizations in the industry increase the success and profitability of their patient care.
We also offer web design, content curation, AdWords management, and more. Now is the time to revamp your current marketing plan to allow your facility to earn more profit and access the tools necessary to reach more patients ethically. Reach out to Drug Rehab Agency to get started on your new marketing strategy.
