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 2019. 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 - Industry SWOT Analysis Chapter
IBISWorld analysis reveals this industry is mature. During the 10 years to 2019, industry value added (IVA), which measures the industry's contribution to the US economy, is projected to increase at an annualized rate of 2.3%. In comparison, US GDP is forecast to rise at an average rate of 2.7% per year during the same period. Because IVA is growing roughly in line with GDP, IBISWorld classifies this industry as mature. In addition, other factors point to this industry's ongoing maturity.
To grow profit, mature industries typically focus on internal efficiencies rather than introducing new products. Wages' falling share of revenue during the 10 years to 2019 indicates the ability of outpatient clinics to do more with fewer workers... purchase to read more