Part
01
of one
Part
01
Competitive Landscape for Large US Addiction Treatment Centers
Hello! Thank you for your research request for a competitive landscape for large US addiction treatment centers. Specifically, you want to understand which facilities are succeeding and why. The short version is, I found 5 facilities that meet the criteria for this request. However, I was not able to find any discussions or analysis regarding the weaknesses of these facilities. Below you will find a deep dive of my research methods and findings.
I conducted advanced Internet searches using a variety of keywords and query types. I sifted through information from academic databases, corporate websites, industry reports and trusted media sites. I confined the results to within the last of 2 years unless otherwise noted and kept a US scope. I defined “large” treatment centers as a combination of those described as leaders in industry and media reports and their annual revenues.
The research request specifically stated that you have already found a “list of leading providers along with a summary of locations, number of beds and publicly available financial information.” Therefore, this report will touch on this information for the 5 facilities, and concentrate on their strengths, weaknesses and philosophies.
RESULTS
My research yielded 5 facilities that meet the criteria for this request. They are CRC Health Group, American Addiction Centers, Acadia Healthcare, Behavioral Health Group and Recovery Centers of America. After extensive searching, I was not able to find any discussions or analysis regarding the weaknesses of these addiction treatment centers. Note – some of the data presented is older than 2 years because some of the companies are privately held, and as such, are not required to publish annual reports and earnings. In these cases, I used the most current data available.
OVERVIEW
Overall, the reading I did on these centers indicates that one of the greatest strengths these facilities have is providing a broad spectrum of treatment options to fit the multiple needs of patients.
A September 2015 article in Xpat Nation states that in the US, the addiction rehab business is growing quickly, and generated $35 billion in 2014. As of the writing of the article, there were around 14,500 US treatment facilities. Data from IBISWorld and reported in Bloomberg in 2015, states there are about 8,100 treatment centers in the US that run 16,700 clinics. PR Newswire reports data from Transparency Market Research saying that the substance abuse treatment market is expected to grow are at CAGR (Compound Annual Growth Rate) of 12.4% from 2016 to 2024. By 2024 the market is predicted to reach $12.43 billion.
CRC HEALTH GROUP
This company claims it has more than 145 facilities and serves more than 40,000 patients each day. Interestingly, even though CRC is seen as the industry leader at this time, these data represent only 2.0% of the market share. A 2015 article in Bloomberg calls CRC “the biggest industry player by far.” According to Hoover’s, CRC’s revenue is $452 million.
CRC sees their strengths as “residential treatment facilities, outpatient clinics, boarding schools, outdoor wilderness camps, and a variety of other therapeutic programs making us uniquely qualified to treat patients throughout the life cycle of their disorders, at every level of care.” The services CRC offers include detox programs, residential treatment, day treatment, family therapy and continuing care. They boast that they really excel with their continuing care programs which include outpatient and aftercare programs and an online treatment portal called eGetGoing.
AMERICAN ADDICTION CENTERS (AAC)
This company says it treats about 5,000 patients each year in the 8 facilities they have in 6 states. Their revenue increased from $116 million to $28 million in the period from 2011-2013. AAC has a current value of $566 million.
AAC is run by Michael Cartwright who is a former alcoholic and drug addict. In October 2014, they became the first US addiction treatment business to go public. Their IPO raised $75 million at that time. The centers treat patients with “solid, out-of-network insurance coverage” in which the average patient pays about $800.00 per day, 90% of which is covered by their insurance.
The AAC facilities are described as modern and modest. One of their biggest strengths is their ability to treat the “concurrent psychological issues” of patients. AAC has a staff-to-patient ratio of just over 1:1 and also runs its own laboratory facility in Nashville, Tennessee. Most of AAC’s facilities have on-site pharmacies along with doctors and psychologists with extensive experience in treating patients substance abuse issues. The About page on AAC’s website says they specialize in “dual diagnosis” or “co-concurring disorders” including treating medical conditions like diabetes and hypertension that can be complicated by addiction. They also point out their other strengths as being a “research-based” in the programs and curriculum, using a 12-step philosophy, being accredited by CARF (Commission on Accreditation of Rehabilitation Facilities) and their “caring, expert staff.”
ACADIA HEALTHCARE
Acadia has grown from 6 facilities in 2010 to 587 today across the US, the United Kingdom and Puerto Rico. They have a total of approximately 17,200 beds. According to Hoover’s, Acadia has over 40,000 employees and their revenue is $2.8 billion.
Acadia began treating mental health issues in general but has now expanded to have specializations such as inpatient psychiatric treatment, treatment for children with autism, fetal alcohol syndrome and eating disorders and residential schools for teens. Acadia also has over 100 detox and rehab centers and 110 treatment programs for opioid addiction (methadone clinics). For children and adolescents, Acadia says they have “world-renowned treatment providers” to assist with mental, behavioral and substance abuse issues with everything from day treatment programs to wilderness therapy programs.
BEHAVIORAL HEALTH GROUP (BHG)
According to Owler, BHG is a private company with revenue of $32.2 million. Unlike the other 4 companies in this report, they are not as diversified in the services they offer but they are still very successful.
They call themselves “a leading provider of opioid addiction treatment services,” and say their mission is “to be the best-in-class opioid treatment facilities by producing superior patient outcomes.” BHG says they “relentlessly” measure themselves against a variety of metrics in order to evaluate the effectiveness of their work. The About Us web page states they have 41 centers in 10 states.
BHG says their success is due in large part to their dedication to a treatment approach that provides “hope, respect and caring.” They impart on the patient the belief that they can recover, they maintain dignity and respect for the patient while doing it, while showing the community and their patients that they care about the impact of the problem on patients and the community.
RECOVERY CENTERS OF AMERICA (RCA)
Yahoo Finance calls RCA “the fastest-growing provider of inpatient and outpatient drug and alcohol treatment programs in the United States.” By 2018, RCA plans to have over 1,000 beds across the New England and Mid-Atlantic regions for rehabilitation, detox and sober living. Hoover’s reports their revenue as $27 million.
RCA sees one of their main strengths as keeping patients close to home during their treatment and recovery. Their website says “It’s been proven when you’re connected to, and supported by, family and friends while building other, ongoing support networks, your recovery is proven to be more likely to be successful.” Their areas of expertise go beyond their “five-star patient treatment” to include patient legal and social advocacy services and creating a “community of recovery” for patients.
CONCLUSION
To wrap it up, I found 5 facilities that meet the criteria for this request. However, I was not able to find any discussions or analysis regarding the weaknesses of these facilities.
Thanks for using Wonder. Please let us know if we can help with anything else!