Drug and alcohol addiction treatment center owners are often not shown appreciation. These individuals are at the frontline of the opioid epidemic. They have dedicated their lives to saving lives and helping others achieve long term recovery. The general public does not realize how difficult it is to own and operate a drug and alcohol addiction treatment center.
Difficult Process of Starting a Drug Rehab
Most substance abuse rehabilitation center owners and operators are in recovery themselves. They know firsthand how drug and alcohol addiction destroys lives. Many strive to help as many people as they possibly can.
This is a difficult task. To own a drug rehab there are many things that have must be taken care of on a daily and monthly basis to keep the doors open. There are very high costs associated with owning and operating a drug rehab. If these individuals cannot pay their monthly bills to keep the doors open, they cannot continue to help individuals into long term recovery.
Starting an addiction treatment center is an extremely difficult task. There are licenses that are required from local governing bodies like the Department of Children and Families (DCF) and their licensure is needed. in addition, there are local zoning ordinances in dealing with the city for approval. There was the cost of attorneys that are very much needed in every aspect of owning and operating a drug rehab.
Many drug and alcohol addiction treatment centers are Joint Commission Accreditation. This is a costly Accreditation; however, it says that they provide the highest level of care. Therefore, many of the treatment centers get this certification. However, to get this certification, there are many steps that are that need to be taken. Documenting and having a procedural process in place for all medical needs that could arise at a drug rehab are needed. This is a lengthy manual that takes an educated and experienced individual to put together.
In addition, there is a business plan that must be put together. This outlines all the steps and starting a drug rehab. In combination with this, individuals will need a Pro Forma which outlines all the costs. On a monthly, or yearly basis and a projection of earnings of up to five years.
To compile a Pro Forma, you must know how much the insurance companies are paying for each level of care. This information is generally from a medical billing company and it is geographical area. The medical billing company will have information on how much the insurance companies are paying for all the different types of health insurance that there are in all the different insurance providers.
Drug Rehab Marketing
Even with the medical component in place and the location up and approved, there is still the most difficult obstacle owners face every day. They need clients to be able to pay their bills and keep the doors open. This is one of the most difficult aspects of owning and operating a drug and alcohol addiction treatment center.
The competition is extremely competitive. There are a handful of big players spending in excess of $500,000 a month in marketing to generate clients. This makes it extremely difficult for the small and medium size substance abuse rehabilitation providers to survive. What are their options to generate clients?
The are only a few different ways for drug rehabs to generate clients. A successful addiction treatment center will use a combination of these to sustain themselves.
- Google Ad Words and PPC
- Drug rehab SEO (ranking organically on page one of Google for keywords)
- Google Maps 3 pack – Ranking in the top 3 Google Maps (This is one of the best ways for small centers to beat the big ones.
- “Boots on the Ground” – Referrals from other centers, private clinicians, the courts, hospitals and more.
- Buy treatment calls – Purchase calls from a lead generation company
As you can see above it is difficult to generate leads and new clients. Each one of the above require an investment and time. Even with all this in place and working there still is a couple of areas of concern left. This is the admissions process and medical billing. We will cover both of these critical areas.
Admissions Where $100,000 Are Lost Every Year – Get It Back with InstantVOB™
Admissions is one of the areas that drug rehabs Owners must pay careful attention to every day. Drug rehabs are allocating a tremendous amount of time, money, and energy to generate leads. A lead usually costs about $4,000. So, rehab owners must capitalize on every phone call generated.
People are not looking for help only during business hours. A call for help can come, and usually does, on nights and weekends. Many drug and alcohol addiction treatment centers cannot verify health insurance benefits at that time. The only thing they know for sure is the potential client’s insurance.
This is why we are recommending InstantVOB™ health insurance verification app for all drug and alcohol addiction treatment centers. This app will help save lives and help drug rehabs generate more clients that they get paid for by the insurance companies. The key factors that are needed to make the best decision possible by the admission staff are outlined below. Learn more about why centers need to verify health insurance benefits here.
- Insurance type
- What is the deductible amount?
- How much of the deductible is met?
- What is the max out of pocket expense?
- Is their co-insurance?
- Are there any co-pay factors?
Having these answers eliminates the risk of the addiction treatment center to take this client. It will also allow the admissions professionals to keep the individual seeking help on the line while they check this important information. The process only takes about 10 seconds to get up to date and correct answers. If they find out they cannot help the individual than they can put then into the best hands if they have this information. They could even three way the best potential addiction treatment center that can help. This reduces the chance of them giving up on seeking help.
Medical Billing Where Centers Are Leaving over 20% on the Table
Medical billing is one of the most under looked areas of operating a drug and alcohol addiction treatment center. The smaller centers and some of the medium sized facilities think they are saving by doing their medical billing in house. However, these are the facilities that are losing and writing off more than 20% of their earned billing every year.
Hiring a well-staffed and experienced medical billing company in the substance abuse industry is a wise choice. They have the experience and manpower to negotiate with the insurance companies. Many times, the insurance companies will stall and audit to delay payment long enough for the addiction treatment centers to just write it off.
An experience medical billing company will also know the best ways to process claims and services. This is why we always recommend for addiction treatment centers to have a medical billing company look at their receivables every year. This evaluation could recoup $100,000’s.
We Help Drug Rehab Owners Everyday
If you are a drug rehab owner, we can help you in two key areas today. We can help you generate more clients that the insurance company will pay for their services with our InstantVOB™ software. We can also help with your medical billing. Most of our clients get over 20% more reimbursements from overdue receivables and claims that were submitted incorrectly.
We appreciate drug and alcohol addiction treatment centers for what they do every day. They are saving lives and making a difference at this difficult time. The next time you think the owners of addiction treatment centers have it made, think about some of things we covered in the article. There are so many more reasons to admire substance abuse rehabilitation owners. We can only cover a little in a blog article.
We know running a drug and alcohol addiction treatment center is a difficult process. There are many different things owners must take care every day. Give us a call at 561-530-5777 and let us help you save and generate more revenue.