Industry Analysis & Industry Trends
Although the recession negatively affected industry revenue and wages, rehabilitation clinics have largely recovered, despite a slight dip in 2012 resulting from a drop in federal funding of Medicare and Medicaid, due to a rise in premiums. Moreover, the improving economic environment is forecast to boost revenue for the Drug and Alcohol Rehabilitation Clinics industry during the five years to 2020. The Patient Protection and Affordable Care Act (PPACA) of 2010 is expanding private and government coverage of industry services, thereby bolstering demand. In turn, companies will continue to enter the industry due to an increasing focus on outpatient services, which are less costly than inpatient care and more desirable among insurance providers, supporting revenue growth.... purchase to read more
Industry Report - Starting a New Business Chapter
The Drug and Alcohol Rehabilitation Clinics industry presents moderate barriers to entry. Although the industry is highly fragmented, without a single provider dominating the market, the significant presence of nonprofit providers limits the opportunities available to for-profit operators. In addition, potential industry participants must recruit trained and competent staff to attract patients and encourage referral-based recommendations; this can be difficult for new entrants in light of competition from existing, established industry players.
Furthermore, clinics must be accredited and licensed by government regulatory bodies. For instance, some states have certificate of need (CON) laws... purchase to read more