February 25 2018

The BUBBLE HAS BURST

Richard Jones Drug and Alcohol Rehabilitation, Focus on Solutions Addiction Professionals, Peer-Based Recovery Support, Treatment Industry

The Acute Care Model

It is possible, actually it’s likely, that the delivery of addiction treatment and recovery services will change at a fundamental level. The acute care model, as it currently stands, will essentially go away at the private level. It may endure at the government/publicly funded level.

One macro-level reason—the attention on the opioid crisis has lead to evaluation of the industry for the first time in history. White middle class kids started to die and people in the general public started questioning practices.

We are at the very beginning of that “questioning” process. Watch as the anger grows.

There are so many questionable practices to question.

I’m talking 5 to 10 years from now. Not tomorrow.

Driven by reimbursement policy, emerging best practices, emphasis on value based care, population health, and the horrible results of destination rehab. Most treatment will be local. The end of the destination rehab is near..
Out of network insurance reimbursement continues to change and is becoming more and more unpredictable.
The days of throwing millions of dollars in billing against the wall and seeing what sticks are numbered.
Less and less is going to stick. (ACA was an illusion) Revenue cycle management more difficult.
This, along with “local” treatment emphasis, will lead to hundreds of centers shutting down. The big boys will survive. And some niche boutiques. But the Walmart rehab days are limited.
There will be a push for addiction treatment services to be delivered and managed primarily through healthcare organizations. This will become best practice and standard of care. Further limiting referrals to the “drug and alcohol clinic”….. this discussion is already occurring nationally.
Professional Recovery Support services will become funded through diverse methods. CMS and commercial insurance will jump in because the cost effectiveness of the service too hard to ignore. Money talks.
As the model grows and gains momentum and validity. Imitation will run rampant. More “providers” leave the treatment fold and go back to running nursing homes.
Treatment Centers will then attempt to provide Recovery Support Services rather than “clinical” services. Some will convert. Many will butcher it. This will further eliminate many of the instant experts and more programs will shut down.
Hospitals take over the primary deliver of addiction treatment and form partnerships with Recovery Support providers. This is consistent with the management of other chronic diseases (diabetes, asthma, heart health) and the culture of healthcare and infrastructure exists to support Recovery Support services.