The U.S. Addiction Rehab Industry

The U.S. Addiction Rehab Industry

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 by Marketdata 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.


  • INTRODUCTION - Study Scope , Methodology & Information Sources Used
    • Government Reports & Agencies
    • Industry Trade Associations & Their Staffs
    • Industry Trade Journals - Their Editorial Staffs & Special Market Surveys
    • Original Marketdata Research
    • Other Directories, Reports, Surveys
    • General Media-Newspapers & Periodicals
    • Computer Business Databases
    • Forecasting Methodology
  • Executive Overview of Major Findings
    • Summary…
    • Nature & Structure of The Industry…
      • Table Operating Metrics for U.S. Mental Health & Substance Abuse Treatment Facilities
      • Facility Operation and Primary Focus
        • Table Estimated Number of Clients Served, by Type Facility: 2018 vs. 2012
    • Industry Problems…
      • The Affordable Care Act and the Mental Health Parity and Addiction Equity Act has completely upended the industry's business model
      • Excessive Consumer Billing and Insurance Fraud
      • Deceptive Marketing
      • Compliance with evidence-based practices is spotty and there is little or no provider accountability for outcomes.
      • Two laws, the Americans with Disabilities Act and the Fair Housing Act, make it practically impossible to regulate, or even count, sober homes.
    • Industry Size & Growth…
      • Table Number of substance abuse treatment facilities in the U.S. - 2005-2018
      • Table Substance abuse treatment expenditures: amount, percent distribution, avg. annual growth: 1986-2020 ($ millions)
      • Table Substance Abuse Expenditures, by Type Facility: selected years ($ mill.)
      • 2020 Marketdata Outlook
      • 2025 Marketdata Forecast
    • Major Competitors…
  • Nature of The Industry
    • Summary & Nature of The Field…
    • Demand Factors…
    • Industry Problems…
      • Excessive Consumer Billing and Insurance Fraud
    • Services Provided…
    • Testing services were provided by 90 percent of all facilities.
    • Transitional services were provided by 98 percent of all facilities.
    • Ancillary services were provided by more than 99 percent of all facilities.
    • "Other" services were provided by 39 percent of all facilities.
    • The decline in cost reflects that shifting mix toward a higher share of outpatients.
      • Middle Class Care
    • Indicators of Program Quality…
    • The Cost of Rehab
    • What to Look for in a Residential Addiction Treatment Facility
    • The Various Types of Addiction Rehab…
  • Customer Demographics
    • Summary of Key Statistics for Drug & Alcohol Abuse…
      • Table Total substance abuse funding by National Institutes for Health 2013- 2020
    • 2018 National Survey on Drug Use and Health: Major Findings
      • Introduction
      • Summary
      • Substance Use
      • Alcohol Use
      • Illicit Drug Use
      • Substance Use Treatment
      • Alcohol Abuse
      • Illicit Drug Use in the Past Year
      • Any Illicit Drug Use
      • Marijuana Use
      • Cocaine Use
      • Heroin Use
      • Methamphetamine Use
      • Hallucinogen Use
      • Inhalant Use
      • Misuse of Psychotherapeutic Drugs
      • Stimulant Misuse
      • Tranquilizer or Sedative Misuse
      • Benzodiazepine Misuse
      • Pain Reliever Misuse
      • Misuse of Subtypes of Pain Relievers
      • Opioid Misuse
      • The Need for Substance Use Treatment
      • Receipt of Substance Use Treatment
      • Receipt of Specialty Substance Use Treatment
      • The Opioid Epidemic
  • Major Trends Affecting The Industry
    • Summary…
    • Industry Problems…
      • Excessive Consumer Billing and Insurance Fraud
      • Deceptive Marketing
      • Patient Brokering
    • How Is Patient Brokering Done?
      • The Affordable Care Act and the Mental Health Parity and Addiction Equity Act has completely upended the industry's business model
      • Compliance with evidence-based practices is spotty and there is little or no provider accountability for outcomes.
    • Recent Attempts at Reform…
    • Other Trends…
    • Demand Factors…
    • The Opioid Crisis & Treatment
    • Medically Assisted Treatment
  • Industry Size & Growth
    • Summary…
    • The Demand for Treatment…
    • Industry Size & Growth…
    • Facility Operations - March 30, 2018
    • Type of Care - March 30, 2018
    • Medication-Assisted Opioid Therapy - March 30, 2018
      • Table Number of substance abuse treatment facilities in the U.S. - 2005-2018
      • 2020 Outlook
      • 2025 Forecast
      • Past Performance
        • Table Substance abuse treatment expenditures: amount, percent distribution, avg. annual growth: 1986-2020 ($ millions)
        • Table Substance Abuse Expenditures, by Type Facility: selected years ($ mill.)
        • Table Substance Abuse Expenditures, by type payment: selected years ($ billions)
        • Table Historical Federal Drug Control Spending on Treatment & Prevention, by fiscal year
    • In the ten years from 2009 to 2019, spending on drug control treatment by the government grew at an average annual rate of 10.9%, as seen above.
    • Reliance on Public Financing.
    • Medicaid and Other State and Local Financing.
    • Shrinking Private Insurance Financing Shares for Substance Abuse
    • E-health.
    • The Effect of Recessions
    • The High End Market Segment…
    • Destination Markets - The South Florida Market…
    • Market Segments & Specialties….
    • Gambling Addiction
    • Sex Addiction
      • Table Estimated National Revenues of U.S. Drug & Alcohol Treatment Centers ($ millions)
  • Treatment Facility Operating Ratios
    • Census Survey Data: 2017, 2012, 2007
      • Table Census Survey Data: 2017, 2012, 2007
      • Table Number of substance abuse treatment facilities in the U.S. by state: 2018
      • Table Growth in Number of substance abuse treatment facilities in the U.S. - 2005-2018
      • Table Estimated Number of Clients Served, by Type Facility: 2018 vs. 2012
  • Major Competitor Profiles: The Leading Rehab Companies & Facilities
    • Hazelden Betty Ford Foundation
    • History
      • Table Company U.S. Revenues by Type: 2016-2018 ($ 000)
    • Recent Developments
      • Consolidation and Exit of Certain Markets and AdCare Acquisition
    • "Rehab Riviera"
  • Reference Directory of Industry Sources
    • Major Industry Trade Journals and Websites
    • Trade Associations
    • 12-Step Fellowships
    • Government Reports & Directories
    • Drug & Alcohol Hotline Phone Numbers

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