Industry Analysis & Industry Trends
The Drug and Alcohol Rehabilitation Clinics industry has benefited from the continuing shift to outpatient care. Rising government interest in ensuring a healthy population will minimize the adverse flow-through effects of substance abuse. As a result, healthcare reform will expand coverage to include treatment for substance abuse and boost demand for outpatient services.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity is low based on the ratio of depreciation to wages. In 2012, wages are estimated to account for about 56.2% of total industry revenue. Meanwhile, depreciation costs, which serve as a proxy for capital investments, are estimated to total about 1.8%. The labor-intensive nature of outpatient rehab care necessitates a high dependence on skilled labor, such as licensed therapists, psychologists and psychiatrists. These professions are able to command a premium due to their required degrees and accreditations. Further, a labor shortage across the healthcare sector as a whole has driven up the industry's total wages. Wages are expected to rise at an annualized rate of 0.5% and total an estimated $4.2 billion during the five years to 2012... purchase to read more