Embracing Change: How the Ideal Option Value-Based Care Strategy and Lab Investments Are Shaping the Future of Addiction Treatment

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In the ever-changing world of addiction treatment, Ideal Option is making a name for itself through strategic foresight, cutting-edge laboratory services, and a deep commitment to better outcomes. Headquartered in Kennewick, Washington, the outpatient provider operates 86 clinics across nine states and is navigating uncertainty with a clear focus on innovation and consistency. At the heart of this evolution is the Ideal Option value-based care strategy—a multifaceted approach that combines data-driven insights, patient-centered models, and scalable infrastructure to meet the rising complexity of substance use disorders.

“We’re consistently seeing change, so we expect more,” said Ideal Option CEO Tim Kilgallon. “The one thing we can predict is unpredictability.”

The Drug Supply Is Evolving—Fast

The illicit drug market is now defined by volatility. Fentanyl has dramatically changed the landscape, not only as a deadly substance on its own but as an additive in nearly every street drug. More recently, xylazine—a veterinary tranquilizer known as “tranq”—has spread across the country, further complicating overdose risks and treatment protocols.

Providers can’t afford to wait for state or federal alerts. That’s why Ideal Option has invested heavily in its own laboratory services, allowing real-time detection of emerging threats and tailoring of treatment protocols accordingly. These insights form a foundational component of the Ideal Option value-based care strategy, supporting both clinical adaptation and personalized medicine.

Polysubstance Use Is the New Normal

One of the key findings from Ideal Option’s lab data is the growing prevalence of polysubstance use. According to their 2023 outcomes report:

  • 75% of patients tested positive for more than one substance at intake
  • 44% tested positive for three or more substances
  • Those numbers were up significantly from just two years earlier

This sharp trend highlights the need for a flexible, outcomes-oriented model like the Ideal Option value-based care strategy, which empowers clinicians to respond to complex substance use patterns with coordinated, long-term care plans.

“We rarely see patients using a single substance anymore,” Kilgallon noted. “Fentanyl is in everything. Even if a patient thinks they’re using only stimulants or alcohol, there’s usually more involved.”

2023: Growth, Stability, and Data-Led Insights

While many in the addiction treatment space struggled with workforce turnover and stagnant growth, Ideal Option saw measurable gains in both areas. The company relocated several clinics to improved locations, added new facilities in Arkansas, Oregon, and Washington, and significantly reduced turnover rates among clinical staff.

Kilgallon credits this success to operational consistency and employee support. But the gains also underscore the effectiveness of the Ideal Option value-based care strategy, which aligns business outcomes with patient recovery metrics and long-term engagement.

One major clinical achievement in 2023 was the integration of xylazine into the company’s standard drug testing panel. Most hospitals still don’t test for the drug, and many outpatient programs remain unequipped. Ideal Option’s ability to detect xylazine early allows providers to account for its effects in treatment and monitor withdrawal risks more closely.

Early Intervention With Fentanyl and Nurse-Led Support

Treating fentanyl use disorder presents unique challenges. The drug stays in the system longer and makes transitions to buprenorphine difficult, often triggering precipitated withdrawal. But Ideal Option has created a care model that addresses these complications directly.

New patients are typically seen every three days in the first week and are supported in-between by a nurse care coordination team. This proactive support, often delivered via phone, bridges the treatment gap and ensures that patients have someone to turn to during high-risk periods.

This model is a core pillar of the Ideal Option value-based care strategy, though much of it is not reimbursed under traditional fee-for-service models.

“Our nurse care team isn’t compensated through standard billing,” Kilgallon explained. “Same with peer support and outreach. But they are absolutely essential for outcomes.”

Value-Based Care: A Smarter Way to Fund Recovery

Today, nearly 10% of Ideal Option’s revenue comes from value-based contracts. These agreements offer flexibility in how care is delivered—and encourage providers to take responsibility for outcomes instead of simply checking procedural boxes.

For Ideal Option, this means they can fund crucial services like peer outreach, same-day buprenorphine induction, and patient support between visits. These interventions are key to long-term abstinence and recovery, and they’re a natural fit within the Ideal Option value-based care strategy.

Bundled payments, another feature of the model, allow the organization to stabilize costs while still delivering a wide range of services. And the data proves the effectiveness of this approach—Ideal Option’s outcomes report continues to show consistent success, even as the drug landscape grows more dangerous.

Making Addiction Care Investable

In 2018, Varsity Healthcare Partners invested in Ideal Option. Since then, the company has grown steadily and proven that addiction medicine—long overlooked by investors—can be a viable, scalable service line when tied to consistent outcomes.

“The lack of predictability in addiction treatment deters capital,” Kilgallon said. “But the Ideal Option value-based care strategy creates consistency. It’s not about spending more per patient—it’s about building trust in the model.”

When reimbursement aligns with real outcomes, the treatment ecosystem improves for everyone: patients, providers, payers, and investors. And as Kilgallon sees it, value-based care is the pathway to making that vision a reality.

Looking Ahead: 2024 and Beyond

Ideal Option’s top priority for 2024 is to expand its value-based contracts and deepen engagement with payers. The company believes that the Ideal Option value-based care strategy can serve as a national blueprint—showing that addiction treatment can be effective, scalable, and financially sustainable.

Despite the administrative hurdles that some payers face when processing non-fee-for-service claims, Kilgallon remains optimistic. He sees a future where outcomes matter more than volume, and where every patient has access to comprehensive, evidence-based care.

“Value-based care allows us to do the right thing without worrying if it’s billable,” he said. “That’s how we change the system.”

Conclusion

In an unpredictable field shaped by dangerous new substances and complex patient needs, Ideal Option is proving that success lies in being proactive, not reactive. Through state-of-the-art lab investments and a bold commitment to value-based care, the organization is not only saving lives—it’s redefining what addiction treatment can be.

By embedding quality, accountability, and patient-centered flexibility into its core operations, the Ideal Option value-based care strategy offers a scalable model for the future of behavioral health. One that prioritizes what matters most: real outcomes, delivered with compassion, consistency, and care.

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