Evaluating drug and alcohol rehab facilities

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December 10, 2024

by a searcher in Washington, DC, USA

Does anyone have experience in the space / thoughts about the industry and is willing to chat about it?

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Reply by a searcher
from INSEAD in San Francisco, CA, USA
I commented on another post but I'll post it again here as it might be useful:

Not personally, but I know someone that owned one of these (drug rehab). She told me it was all based on insurance - patients with great insurance are very lucrative, but others you are barely breaking even. One issue to consider is referrals, she told me that a hotline company stopped referring her facility all the "good" patients once they figured out how much money was involved and instead opened up a competing facility.
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Reply by an investor
from University of Virginia in Washington, DC, USA
I am invested in a substance abuse / behavioral heath business (just 9 months in). It takes a certain kind of person to make this work. It is a "roll up your sleeves and get your hands dirty" type business even more so than HVAC or plumbing. That said, there are many poorly run faculties and a strong operator can make a big difference - financially, and in the lives of patients and employees.
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