The landscape of Substance Use Disorder Treatment Expansion is rapidly evolving, with providers increasingly exploring innovative ways to expand their business offerings and forge new partnerships to drive revenue growth. In an industry that has traditionally been focused on inpatient and residential care, the move towards diversifying services is becoming a critical strategy to meet the growing demand for comprehensive and flexible treatment options. By expanding the continuum of care and partnering with key stakeholders, SUD treatment centers are not only improving patient outcomes but also creating new avenues for business growth.
Diversification: A Key Strategy for Revenue Growth
Diversifying service offerings has emerged as one of the most popular strategies for SUD providers looking to boost revenue generation. Many treatment centers have recognized that simply offering traditional residential care is no longer sufficient to meet the needs of today’s patients. To remain competitive, providers are expanding their service menus to include more intensive outpatient programs (IOPs), outpatient coaching, and even virtual care options, all of which allow them to serve a broader range of patients.
According to Robert Poznanovich, Chief Business Growth Officer at the Hazelden Betty Ford Foundation, the organization started out with a strong focus on residential care. However, over time, they realized the importance of diversifying their service lines. “We started out for many years just doing residential care. And as we move more [to working with] payers, we saw an opportunity to expand into partial [hospitalization], which led to an opportunity to grow into IOP,” Poznanovich shared during a panel at Behavioral Health Business’ Autism & Addiction Treatment Forum.
Hazelden Betty Ford’s expansion strategy has been highly successful, with the organization now offering a range of services such as recovery management, peer support, and coaching, which make up 20-30% of their revenue. This ability to diversify their offerings through Substance Use Disorder Treatment Expansion has allowed Hazelden Betty Ford to increase revenue while also ensuring that patients have access to a complete continuum of care that supports long-term recovery.
This type of growth reflects a larger trend in the SUD treatment industry—providers are shifting away from focusing solely on residential care and are instead expanding their treatment modalities to better serve the needs of a wider range of patients. By providing a full spectrum of services, from medical detox and residential inpatient care to outpatient services and recovery coaching, providers can ensure that they are meeting patients where they are in their recovery journey, improving outcomes, and increasing their revenue potential.
The Rise of Home-Based and Virtual Services
While many providers are expanding their traditional service offerings, another exciting trend emerging within the Substance Use Disorder Treatment Expansion space is the growth of home-based and virtual care options. For individuals who have completed a residential treatment program, returning to “normal” life can be daunting. For example, individuals with families, careers, and financial responsibilities may find it difficult to transition back to a traditional outpatient model without adequate support.
Maks Danilin, Chief Revenue Officer at Guardian Recovery, highlighted this shift at the Behavioral Health Business forum, sharing that one of the biggest opportunities for the future of SUD care is extending treatment options to home-based service lines for both adolescents and adults. “When an individual is completing their traditional 30-day residential stay, and they are a parent of two children, have a mortgage, a career, and are about to go home, virtual is an option, but expanding it to offer home-based service lines where they can go back to work, they can go back to their families, and have care fit around their personal, professional schedules is key,” Danilin explained.
Guardian Recovery, based in Delray Beach, Florida, has adopted this model by offering medical detox, residential inpatient care, and intensive outpatient services, in addition to mental health services such as psychiatry, therapy, and ketamine treatments. The flexibility to offer home-based or virtual care options has not only increased accessibility but also made it easier for individuals to maintain their recovery while juggling the responsibilities of everyday life.
This expansion into virtual and home-based services represents a significant opportunity for providers to tap into a growing market of patients who require flexibility but still need ongoing support. By offering services that can be tailored to a patient’s unique circumstances, providers are able to ensure that recovery doesn’t require individuals to completely disrupt their personal lives. Additionally, this model helps providers attract a broader range of patients, particularly those who may not otherwise have access to in-person care due to geographical limitations or scheduling conflicts. The Substance Use Disorder Treatment Expansion to home-based care could prove to be a game-changer for many patients and treatment centers alike.
Strategic Partnerships: Collaborating for Success
While some providers are focusing on diversifying their service offerings, others are finding new avenues for growth through strategic partnerships. These partnerships can range from working with insurance payers to collaborating with local employers, community organizations, and even correctional facilities. By leveraging these partnerships, providers can broaden their reach, attract new patients, and open up new revenue streams.
Groups Recover Together, a treatment provider specializing in opioid use disorder (OUD), has taken a slightly different approach. Rather than expanding its own service offerings, Groups Recover Together has focused on developing partnerships with other organizations that provide inpatient, IOP, and partial hospitalization services. Cooper Zelnick, the Chief Revenue Officer at Groups Recover Together, emphasized the importance of these partnerships in his discussion at the BHB conference: “We’ve been spending a lot of time with departments of corrections, and a lot of time with states, seeking to serve uninsured folks, folks transitioning out of incarceration, and back into the community.”
Groups Recover Together has built its business model around providing medication-assisted treatment (MAT) and virtual or in-person group therapy through “technology-assisted treatment.” This focus on collaboration with key partners in the community allows Groups Recover Together to effectively fill gaps in the treatment continuum while keeping its focus on its core competency—helping patients with OUD recover.
Similarly, employers are becoming a critical partner for many SUD treatment providers. As workplace mental health continues to gain attention, organizations are recognizing the need to offer comprehensive care that addresses not only mental health but also substance use disorders. However, stigma remains a significant barrier to accessing care through employers, with many individuals reluctant to seek treatment due to fear of judgment or potential career repercussions.
Nevertheless, as attitudes towards addiction and recovery continue to evolve, employers are becoming more open to supporting employees with SUDs. As Poznanovich from Hazelden Betty Ford shared, his organization has made significant strides in developing relationships with employers and HR consulting firms to ensure that Substance Use Disorder Treatment Expansion is integrated into broader employee wellness strategies. “We put a lot of effort over the last couple of years into employer relationships. We’re working with brokers and HR consulting companies in ways we haven’t done before to try to make sure that we carve out a space for us that we’re not forgotten as they’ve launched mental health strategies that don’t include substance use,” he said.
By creating a “center of excellence” package and offering bundled care, providers can create a compelling value proposition for employers, offering employees a chance to access recovery services through their workplace. This can also help reduce the stigma surrounding SUD, as employers actively sponsor and support recovery and treatment.
Overcoming Stigma and Moving Forward
The stigma surrounding SUD remains one of the biggest barriers to treatment, especially in the workplace. However, the landscape is changing. As employers begin to recognize the impact of SUD on their workforce, they are more likely to support comprehensive treatment programs that address addiction alongside other mental health concerns. This shift in perspective presents a significant opportunity for SUD providers to expand their reach and offer innovative, employer-sponsored recovery programs.
Moreover, as the understanding of addiction and recovery continues to grow, patients are becoming more open to seeking care through non-traditional channels, whether through home-based services or employer-supported treatment programs. This evolving landscape holds great potential for providers who are willing to adapt to the changing needs of patients and leverage partnerships to expand their impact. The Substance Use Disorder Treatment Expansion will likely continue to include innovative models that serve the patient’s specific needs while also creating new growth opportunities for treatment centers.
Conclusion
The Substance Use Disorder Treatment Expansion industry is undergoing a significant transformation, with providers adopting new strategies to diversify their service offerings, expand care delivery models, and form strategic partnerships that can help them grow revenue. Whether by offering flexible home-based care, collaborating with community partners, or working with employers to support employees in recovery, SUD providers are finding innovative ways to expand their reach and improve patient outcomes.
As the demand for substance use treatment services continues to rise, providers who embrace these new models of care will be well-positioned for sustainable growth. By thinking creatively, expanding their service offerings, and forming meaningful partnerships, SUD treatment centers can not only better serve their patients but also thrive in an increasingly competitive healthcare market. The future of Substance Use Disorder Treatment Expansion lies in a multifaceted approach that blends traditional treatment models with innovative new services, and the providers who can successfully integrate these elements will be poised for long-term success.
