RehabFAQs

how to start a drug rehab for profit

by Veronica Hilpert Published 2 years ago Updated 1 year ago
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24 Steps to Starting a Drug & Alcohol Rehab Center.

  • 1. Understand the Industry. According to the National Council on Alcoholism and Drug Dependency in the united states, over 23 million Americans which ...
  • 2. Conduct Market Research and Feasibility Studies.
  • 3. Decide Which Niche to Concentrate On.
  • 4. Know Your Major Competitors in the Industry.
  • 5. Decide Whether to Buy a Franchise or Start from Scratch.

Full Answer

How to start a drug rehab center business?

How to Start a Drug & Alcohol Rehab Center in 24 Steps 1. Understand the Industry According to the National Council on Alcoholism and Drug Dependency in the united states,... 2. Conduct Market Research and Feasibility Studies Demographics and Psychographics The demographic and psychographic... 3. ...

Is the drug and alcohol rehab business still profitable?

If YES, here is a sample drug rehab business plan template & feasibility report. A drug rehab center is a rehabilitation/correction center for drug addicts. This business can be described to be in two-folds, that is engaging in a noble cause (social enterprise) while also bringing profit for the entrepreneur. The drug rehab center business is a delicate business, you need to network with …

What is the first step in opening a rehab center?

Contact your state as well as local authorities to ensure which permits and licenses are necessary for you to open your business. Be sure that your area is zoned for this kind of treatment facility. Get permission to refurbish or build your site and appear at hearings if required. Similar Articles Guide to Start a Rehab Center

How much does it cost to start a drug and alcohol rehab?

Jul 11, 2011 · Funding You must calculate if the venture will be profitable. Decide how many residents you will have in each room, how much you will charge, and whether you will charge by the day, week or month. Be sure to take into account all your expenses, including mortgage or rental fees, food utilities, staffing, sundries and other incidentals.

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How do I start rehab?

How to start a Rehab CenterStep 1: Do Your Research. You need to know everything that there is to know about the industry. ... Step 2: Find a Location. ... Step 3: Get Licensed. ... Step 4: Formulate a Pro-Forma and Business Plan. ... Step 5: Get Accredited. ... Step 6: Find and Train Staff. ... Step 7: Market. ... Step 8: Open Your Doors.Sep 3, 2020

How much does drug abuse cost annually?

Substance abuse costs our Nation over $600 billion annually and treatment can help reduce these costs. Drug addiction treatment has been shown to reduce associated health and social costs by far more than the cost of the treatment itself.Jan 17, 2018

How much is the recovery industry worth?

Drug and alcohol addiction rehab in the United States is big business — worth $42 billion this year. There are now 15,000+ private treatment facilities and growing.Feb 5, 2020

What are the 5 stages of rehab?

Don't Forget the RehabPhase 1 - Control Pain and Swelling.Phase 2 - Improve Range of Motion and/or Flexibility.Phase 3 - Improve Strength & Begin Proprioception/Balance Training.Phase 4 - Proprioception/Balance Training & Sport-Specific Training.Phase 5 - Gradual Return to Full Activity.

What type of drug contributes to most of the cost?

Impact on Crime and Criminal Justice Systems Crack cocaine and methamphetamine are the drugs that most often contribute to the commission of crimes in the U.S., according to the National Drug Threat Survey. Heroin use is a significant factor in the commission of property crimes.Sep 15, 2020

What drug causes the most hospital visits?

It estimated that sedatives and anxiolytics were most often to blame, causing nearly 31,000 annual emergency department visits. Following those, antidepressants account for more than 25,000 visits, antipsychotics for nearly 22,000, lithium salts for 3620 and stimulants for 2779.

How many drug rehabs are there in America?

In the United States, more than 14,500 specialized drug treatment facilities provide counseling, behavioral therapy, medication, case management, and other types of services to persons with substance use disorders.Jan 17, 2018

How big is the rehabilitation industry?

The U.S. outpatient rehabilitation market is estimated to be a $30 billion industry with a projected annual growth rate of five percent or higher.

How many people in the US go to rehab?

Statistics on Addiction Treatment. In 2017, an estimated 20.7 million people age 12 and older needed treatment for a substance use disorder. Only 4 million people received treatment, or about 19% of those who needed it.Mar 11, 2022

What are the 3 P's of recovery?

3 “P's” for Recovery: Passion, Power and Purpose.Aug 18, 2016

What are the 3 phases of rehab?

Athletic trainers (ATs) have traditionally conceptualized rehabilitation programs in terms of 3 distinct physiologic phases: acute injury phase, repair phase, and remodeling phase.

How long is physical reconditioning?

A licensed physical therapist and strength coach will supervise the program. An average program can last anywhere from a couple of weeks to a few months, depending on the needs of the individuals in the group.

Why do you have to start a rehab center?

Before starting a rehab center business, you have to be sure that it is a business you are ready for, because apart from making profit like any other business, the primary cause of the business aims at achieving a noble cause of ensuring people become free of their addictions whatever they may be.

What are the challenges of rehab?

Some of the threats and challenges you are likely to face in your rehab center business include a drop in funding from the federal government which might be due to a downturn in the economy; more strict regulations from operating state, or more competitors in the same niche.

Is rehab a delicate business?

Starting a rehab center business is a very delicate affair as it cannot be treated just like any other business. Your location, equipment and staff matter greatly in starting this kind of business and so if you are not one that is determined, you might need to look for another kind of business to go into.

Why is financing important for rehab?

Financing your rehab center business is very important because no business or business idea can thrive without finances, no matter how noble or fantastic the business is. Finance helps the business not only become a reality but also to thrive and grow.

What is the most important decision for a start up business?

One of the most important decisions any entrepreneur has to make for their start-up business is choosing the legal structure that will suit the business and its specific needs. The legal entity decision is a profound one that will have an impact on how much tax is being paid, your personal liability, the amount of paperwork you would be required to carry out as well as your ability to source for start-up capital, which is why it is necessary for you to meet with an attorney who would best guide you on what legal entity would suit your business.

Do rehab centers need insurance?

Insurance is a necessary decision for any entrepreneur that intends to go into business in the United States of America. If you are intending to start your own rehab center business, you would need to find out what insurance coverage your business is expected to have.

Why is customer retention important?

Customer retention is very important in a business as it is a way of businesses knowing that their customers are loyal and responding to the different retention strategies. Customers only move to other companies when they aren’t satisfied with the services offered by the present company they are patronizing.

What is the best way to advertise a rehab center?

Social Media Marketing. Social Media is a great community building and branding tool to use when you start a rehab center. Facebook marketing also provides a great advertising platform in which you can leverage the content you create and put it in front of a large audience.

Why is marketing important in rehab?

Without the ability to bring in new clients, your treatment center as well as your investment, will be a failure. It is highly important that all of your marketing efforts need to be legal, ethical and effective.

What is the first step in opening a medical facility?

Obtaining a license is the first and crucial step to opening your facility. You must remember that your patients will be attending your facility to receive help for dire mental health and medical conditions – whatever they may be. Therefore, like any medical facility, you must acquire a license to conduct business.

How many people are addicted to alcohol?

Industry Overview. According to the National Council on Alcoholism and Drug Dependency in the United States, over 23 million Americans from the age of 12 and above are addicted to alcohol and other drugs.

Who is Tim Stoddart?

Tim Stoddart is the CEO of Stodzy Internet Marketing. He lives in Nashville with his wife and hit adorable pitbull, Alice. Tim loves to write about digital marketing and personal growth. You can learn more at TimStodz.com

What is CARF accreditation?

CARF is a non-profit accreditation body that evaluates substance abuse and dual-diagnosis programs. As the largest U.S. accrediting organization for addiction facilities, facilities that have met CARF-defined standards of care have attained the industry benchmark for quality programming.

How to create a financial plan?

The best way to devise a financial plan is to create an Excel document. List each expense you will have. Create a realistic revenue forecast. How many clients can you admit per month? What is the projected earning from each client? The more detail the better.

Step 1: What Kind of Addiction Treatment Facility Do You Want to Open?

There are a few different types of rehab centers out there.#N#The first is a full-continuum rehab facility. In these treatment centers, patients can do everything from detox, live, attend outpatient programs, and patient hospitalization programs (PHPs).#N#An Intensive Outpatient Program (IOP) facility is different.

Step 2: Getting Your Drug Rehab Center Licensed

Regardless of the type of rehab center you want to open, you must receive a license.

Step 3: Hiring and Training Your Staff

Once you’ve applied and been approved for your business licenses, you’ll need to hire and train employees.

Step 4: Applying for Insurance Accreditation

Insurance accreditations mean your facility can accept insurance payments from patients. If you plan to run a rehab center for out-of-pocket patients only, you can skip this step. But if you plan to serve low-income or elderly populations, this is a must.

Open a Drug Rehab Facility Today!

As long as you follow these 4 steps, you’ll be on your way to opening the drug rehab center you’ve always wanted to. And the people in your area will thank you.

What is drug rehab?

The Drug and Alcohol Rehabilitation Clinics industry is made up of clinics and facilities with medical staff that primarily provide inpatient and outpatient services related to diagnosing and treating alcohol, drug and other substance abuse. For-profit and nonprofit establishments are also part of this industry.

What is a drug rehab center?

A drug rehab center is a rehabilitation/correction center for drug addicts. This business can be described to be in two-folds, that is engaging in a noble cause (social enterprise) while also bringing profit for the entrepreneur. The drug rehab center business is a delicate business, you need to network with legal, medical, ...

What is the future of a business?

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

What does it mean to be highly competitive?

To be highly competitive in this industry means that you should be able to secure a conducive and secured facility, deliver consistent quality service and should be able to record good testimonial of changed lives; of former drug addicts and alcoholics becoming good citizens of the United States.

Who is Solomon O'chucks?

Solomon O’chucks is a Researcher, Prolific Writer and a UNICEF trained & Certified Facilitator and Counselor, A Graduate of Morris Cerullor School of Ministry and He Holds a Degree in Personal Development & Science of Success from IIGL Asheville, NC, USA.

Owning a Rehab Business

Starting a rehab business is not as difficult as you may think it is. However, there are many things that you need to do in order to be successful in this type of business. This is because that you will be dealing with special people who need personal attention.

Additional Tips to Launch this Business

Determine the types, philosophies, sizes, as well as approaches used by other drug rehabilitation centers in your area to know whether your area can still accommodate another facility. Contact your state as well as local authorities to ensure which permits and licenses are necessary for you to open your business.

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Great rewards await you when you buy a HealthSource Chiropractic and Progressive Rehab business franchise.

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Employee Drug Test Requirements – Urine, Hair, and Saliva Tests#N#If you want to pass a drug test, then you should NOT use drugs. This is the best way to ensure that you will pass the test. Read the article to find out about the different tests conducted.

235 Comments

Hi seeking information on day treatment centers in Virginia. Brother in law has some capital that he would be willing to invest for the right opportunity. I am a registered ED nurse/nurse manager who has some contacts in the Behavioral health area. Please feel free to contact me by phone at 540 729-5251

What are the stages of recovery?

The five stages of recovery include pre-contemplation, contemplation, preparation, action and maintenance. These stages usually move people from addiction to sobriety in their lives.

What is a halfway house?

Recovery houses are more commonly referred to as halfway houses. Recovery houses help somebody recovering from addiction learn new skills and learn how to function again in society. Any addict who has undergone drug or alcohol addiction treatment in a hospital or clinic will attest to how difficult the transition from full-time treatment ...

Insurance, Fees and Double-Dipping

Insurance companies have begun to cut reimbursement rates in an attempt to moderate skyrocketing billing practices for drug testing. However, lab equipment sales reps report dozens of new facilities are popping up each month. It appears as the demand for urine drug screens grow, so do the number of unscrupulous people looking to turn a profit.

Rationalizations or Recovery?

Of course, these drug tests are more complex than the at-home kit from Walgreens. They’re more sensitive and can detect a wider variety of substances at smaller amounts. Still, something seems shady about the immense profit margin for these tests. At current rates, a single urine drug screen can cost more than a day of therapy.

How many people are addicted to alcohol?

This article is more than 6 years old. The National Council on Alcoholism and Drug Dependency estimates that over 23 million Americans (age 12 and older) are addicted to alcohol and other drugs. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), just under 11% ...

Who is Lance Dodes?

Lance Dodes, MD ‒ Addiction Expert & Author Harvard Medical School Graduate in The Business of Recovery. As a part of the annual film festival in Southern California, the film is being shown again Tuesday evening and the producers are working toward a broader, public release later this year.

Why is the movie "The Last Jedi" so timely?

The film is timely because the market does seem poised for accelerated growth based on a number of key attributes. A real‒estate component that can easily scale to any size ‒ including the private, single family residence (called "sober living homes" ‒ by one estimate over 10,000 in Arizona alone ).

Is AA a treatment?

AA is not really a treatment ‒ it's a fellowship. If you go to your doctor to be treated for cancer or heart disease you expect your doctor to be doing what the science says is the best treatment available for what you have. That has not been the standard in addiction treatment.

Is 12 step treatment good?

Almost all residential treatment programs in the United States are 12 Step based, so their effectiveness will depend entirely on whether 12 Step programs work and the statistics for AA are not good. It is helpful for 5‒10% and that's a good thing.

Is residential rehab a result of the Affordable Care Act?

Experts interviewed by NPR say this problem — residential rehab programs operating more like luxury spas or used car dealerships — is an unintended result of the Affordable Care Act.

How many people died from drug overdoses in 2019?

These findings, based on data collected in 2019, come as far more Americans are dying from drug overdoses during the pandemic — more than 81,000 last year, according to the Centers for Disease Control and Prevention.

Is Howard Samuels still in rehab?

Howard Samuels, who ran high-end rehab clinics in California until last year. He still maintains a private therapy practice for people in recovery.

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How Much Does It Cost?

  • Opening a treatment center can be costly. Your largest investment will be into the property and the people running the center. The issue with answering this question is that each center is vastly different. What type of center are you opening, modalities, level of care, city and state, etc. A larg…
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Feasibility Study

  • First step is a feasibility study. This will help you determine exactly what is needed in your local area (or the area in which you wish to open a center). In this phase you will need to determine the type of rehab center you want to open. By type, we are referring to the level of your treatment center will provide. For example, will it be a full continuum of care center? Which we highly sugg…
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Business Plan

  • Like any business, you need to create a professional addiction center business plan and pro-forma. The business plan puts your thoughts to paper and creates what the business will become. This is required by all banks and most serious investors. To learn more about how we can help with your business plan writing, click here
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Staff and Training

  • The recovery industry is not much different than most. Your staff will create an amazing experience for your patients. You need to hire the following staff to open a center: 1. Executive Staff 1.1. Medical Director 1.2. Executive Director 2. Intake Staff (handling inbound leads for treatment) 3. Medical Staff 4. Clerical Staff 5. Janitorial Workers 6. Case Workers 7. Managers 8…
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Accreditations CARF and Joint Commission

  • Accreditation from CARF or The Joint Commission (JCAHO)is highly valuable these days. More and more insurance companies are requiring one of these two accreditations in-order to enter treatment which means if you allow a patient to enter your facility and are not accredited, they will not pay out for the services your provided.
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Marketing Execution

  • As we said before, marketing is where most people fall flat in the recovery business. They don’t provide enough budget to cover what is needed and end up running out of money or have empty beds when they open. Marketing for addiction rehab centers is a two-pronged approach. The first prong being long term investment in Organic Search and your brand. Organic search (SEO) is Go…
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