Is Now a Good Time to Open an Addiction Treatment Center?
A drug rehab center can be a lucrative business. However, many factors must be considered when planning to open a treatment center. This article will explore some of those factors and how to start a rehab center even during times of economic uncertainty.
THE ONGOING NEED FOR ADDICTION TREATMENT
It's no secret that substance abuse and addiction are widespread in the United States. The number of people who seek addiction treatment each year reflects the problem, but there are many more.
SUBSTANCE ABUSE AFFECTS MILLIONS
While substance abuse is often used to refer to illegal drugs, it can also include the misuse of legal substances, such as alcohol, prescription drugs, and over-the-counter medications. Substance abuse can lead to many problems, including mental and physical health, financial, relationship, and legal troubles. People suffering from substance abuse often have difficulty holding a job, maintaining healthy relationships, and meeting personal responsibilities. Substance abuse can also lead to accidents, injuries, crime, and death.
Substance abuse is a serious problem in the United States, affecting millions of people of all ages. The 2020 National Survey on Drug Use and Health (NSDUH) reported that 40.3 million Americans aged 12 or older had a substance use disorder in 2019.
OVERDOSE DEATHS CONTINUE TO RISE
Overdose deaths in the United States have continued to rise over the past two decades, nearly quadrupling from 1999 to 2020. According to the Centers for Disease Control and Prevention (CDC), almost 92,000 people in the United States died from drug-related overdoses in 2020. These overdoses include deaths resulting from illicit drugs and prescription opioids.
THE IMPACT OF COVID-19
The COVID-19 pandemic has taken a toll on the mental health of people all over the world. Now, with so many struggling to cope with the upheaval in their lives and turning to alcohol and other substances, effective addiction treatment is needed more urgently than ever.
MORE TREATMENT OPTIONS THAN EVER BEFORE
Despite all the bad news about substance abuse, there is some good news. More treatment options are available, such as the Bridge device and psychedelics. While the idea of using psychedelic drugs to treat addiction may seem counterintuitive, evidence indicates that psychedelics can be highly effective. For instance, recent studies have shown that psychedelics can help rewire the parts of the brain associated with depression, PTSD, and substance abuse, reducing symptoms and increasing the ability to manage cravings and triggers. In some cases, psychedelic-assisted therapy has proven more effective than traditional methods.
Medication-assisted treatment has also become more widely available in recent years. This treatment approach involves medication (usually methadone or buprenorphine) that helps wean people off opioids. Medication-assisted treatment has proven to be highly effective and is now available at many addiction treatment centers.
The increase in treatment options is good news for those struggling with addiction, as it means treatment facilities can offer a more personalized approach to treatment.
A RECESSION PRESENTS OPPORTUNITIES TO START A TREATMENT CENTER
While a recession can cause worry in many industries, economic downturns don't necessarily affect drug rehab centers and need not be feared.
Some businesses are more recession-proof than others: During an economic recession, certain types of businesses tend to fare better than others. For example, companies that sell essential goods or services — such as food, healthcare, and transportation — tend to weather economic downturns relatively well, since people continue to need these items even when their incomes are tight. On the other hand, businesses that sell discretionary items — such as luxury goods and vacations — often see a sharp drop in sales during a recession, as people tighten their budgets and cut back on non-essential spending.
Insurance can cover some costs: Most major insurance carriers offer coverage for both inpatient and outpatient treatment. So even during a recession, rehab centers shouldn't fear that people can't afford them, as many people have insurance that will help cover the cost.
Even amidst the economic uncertainty we’ve faced in 2022, applications for US unemployment insurance remain historically low meaning many Americans continue to receive health insurance coverage through their employer.
There are also government programs that can help offset the cost of treatment, such as Medicaid and Medicare.
A recession can drive people to seek treatment: In challenging economic times, people are more likely to seek help for addiction, as they may be facing job loss or financial stress.
An opportunity for increased funding: Recessions can lead to increased funding for starting drug rehab centers as governments prioritize programs that provide essential services.
Rehab centers can be profitable: Rehab center owners receive fees for their services by charging patients, healthcare insurance companies, or both. Standard inpatient addiction treatment at a facility can cost between $14,000 to $27,000 for a 30-day stay. Opening a facility can prove profitable, especially in an underserved market. According to experts, the drug addiction treatment market is predicted to grow by 6.7 percent from 2020-2028.
HOW TO START A DRUG REHAB CENTER
If you're thinking about starting a treatment center, you'll want to consider a few essential steps:
Ensure you have sufficient financial resources to sustain the business until it's established and generates a profit.
Create a comprehensive marketing plan to raise awareness about your center.
Build a strong team of qualified staff members committed to helping others recover from addiction.
These measures can increase your chances of success and positively impact your community, even during a recession.
THE DRUG REHAB AGENCY CAN HELP
Opening and marketing a treatment center can be challenging, but The Drug Rehab Agency can help you get started on the right foot. We offer a wide range of services, including start-up consulting and marketing support. We also provide ongoing training and assistance to guide you through the process. Contact us today to learn more about how we can help you open an effective and profitable drug rehab center.
