How We Got Here – The State of the Substance Abuse Treatment

We routinely hear about substance abuse treatment programs that are struggling, and while there is an ongoing difficulty with getting insurance companies to adequately pay for treatment currently, let’s not forget how we got here.

Tighter restrictions from payers – Yes, today there are major insurance companies doing shady things. From outright denying claims for no reason and sending payments to clients instead of providers, to reducing the number of covered days, lowering the allowed amounts and trying to force everyone to meet their fee schedules. On the flip side of this, there are more than enough examples of treatment providers bilking the system for too many drug tests and lab kickback schemes, billing for services not delivered or at inappropriate levels of care, and even intentionally having people relapse to test positive and readmit starting back at detox all over again.

Obviously not everyone tried to cheat the system, and in reality it was only a fraction of the programs, but it was enough to catch the attention of the companies and regulatory agencies.

Forcing LegitScript for paid ads online – When Google limited AdWords access for treatment centers in September of 2017, it instantly crippled many good programs who were dependent on that form of advertising for their services. Then, they eventually brought it back, but forced each one to go through a private company for a form of verification and vetting process. Although initially sounding good on the surface, it has been far from perfect, and to expensive of a mandate for some small facilities to have to compete with. Unfortunately, Facebook and Bing later followed suit.

We feel that the original good intention of wanting to clean up the ad space was an honorable attempt, but it is of course far from perfect. Maybe other similar vetting companies can be approved as well and do it for less money so that it can even the playing field for all programs, not just allow those with more money and resources control more of the space. Again, if there hadn’t been bad actors out there being deceptive with their marketing tactics, such action would not have been taken.

There are definitely other influences that have caused the current difficulties for many facilities out there today. We feel that the pendulum will eventually swing back the other direction and things will find a happier medium on many of these topics. The fact is that the overwhelming majority of treatment centers are doing wonderful things to help people recover, and that should remain the focus of the industry.

In the meantime, treatment providers must learn how to adapt in order to make their services known and available to people so that they can keep their census high enough pay the bills. For some, this may mean getting some admissions training, some consulting, or changing their marketing approach all together. For others, it may mean adding or removing services they provide, going in-network with some carriers, or adding levels of care to their continuum.

If you have a treatment program that is struggling in today’s industry climate, contact us to see if we can help.

Advanced Recovery Completes Website Sale

Of the many services and products we provide to treatment centers, the most sought after ones revolve around generating phone calls and web inquiries for people seeking rehab options.

We have worked with dozens of treatment facilities across the country over the years in different capacities, and we are very proud to announce that we recently sold two of our websites to a growing national provider with excellent programs. Although the details of the deal are confidential, we can say that it was our largest deal to date, as the sites were generating nearly 1,000 inquiries per month.

We look forward to working with more programs in the future and continuing to develop other web properties that help connect people seeking help with quality treatment providers.

Searching for Profits in All the Wrong Places

drug testingA couple of recent news stories have undoubtedly caused some squirming among many a treatment center executive. They revolved around some questionable business practices involving drug testing procedures and treatment centers, the labs associated with them and insurance companies.

First, there was an inquiry by the Securities and Exchange Commission regarding potential profit inflation due to drug testing revenue into a certain publicly-traded group of treatment centers. Then there was an FBI investigation into multiple facilities connected to labs in South Florida.

The practices in question involved performing an unusually high number of drug tests on individuals who have insurance policies, sending them to labs that charge a ridiculously high fee for them and then getting huge payouts and kickbacks from the drug testing claims. Many clients were billed well over $100,000 in lab fees alone.

While examples like these are more obvious when examined after the fact, there are undoubtedly many treatment programs around the country that have engaged in similar practices, even if only a little bit. People in the news stories appear to be motivated by profits, not by helping people recover. For some struggling facilities elsewhere, that distinction may be a bit more blurred.

The fact is there are industry-accepted standards for drug testing, and there are usual and customary charges for lab services for those procedures. Attempts to manipulate that for any reason turns into dishonest business practices and is not in the best interest of the clients.

That being said, there is nothing wrong with being a profitable business, but how someone goes about it makes a huge difference. If you provide an excellent treatment program, help the majority of your clients into successful recovery and market your services well, you will make money. Cheating the system is not a sustainable business model.

If you operate a treatment facility and need help marketing it, contact us today for a free consultation to see how we might be able to help you so that you can help more people.

How Many of Your Leads are Converting?

questionThere are many companies out there that know how to generate leads, regardless of the field or industry. There are often several missing components, though, as in the drug and alcohol treatment field there is a much stronger human element. It is literally a life-and-death situation and people are often desperately seeking help.

Given all the different factors at play, it can be difficult to find an industry average on how many leads convert into paid clients/ enrolled patients. The variables not only include what type of quality the prospects are, but also the fact that there are so many different options, and we can’t leave out the ability of the admissions personnel to get people enrolled.

We have seen conversion rates be as low as less then .5% and as high as more than 15%. That means on one side it takes 200 leads to get one patient signed up for treatment, while on the other it only takes about 7. That’s quite a difference. Are the programs that have higher conversion rates really that much better than the ones with lower numbers? Not necessarily.

If we had to take a guess at an average conversion rate in the rehab field, it would be right around 2%, meaning it takes 50 leads to get one paid enrollment. Slight changes in quality of leads, quantity of leads, how the facility is presented online and effectiveness of the people handling them can make a big difference. These are the types of things we specialize in and can help your center with.

Imagine how much better things would be if you could get even one more person enrolled each week on average. That could be an extra million dollars or more in revenue for the year. Even better, that would be 52 more lives that you have an opportunity to save and can positively impact.

Even Non-Profits Have to Earn Money

non-profitsPeople often have the misconception that because a program is non-profit that means they shouldn’t charge for their services. We wanted to take a moment to address some of the issues surrounding such an idea.

For starters, the staff have to earn a living. Sure, some non-profit charities are staffed almost entirely by volunteers, but that is not the case with drug and alcohol treatment programs. Most people want them to be staffed by professionals who will be doing their best to help them recover from addiction. These professionals have to eat and have families to support and bills to pay just like the rest of us. Therefore, even non-profit treatment centers must make money.

Now, this doesn’t have to mean they charge outrageous amounts. They typically stick to low rates for the services they provide and sometimes even get donations, grants or other funding from outside sources and to be able to offset the cost of rehabilitation even more through discounts or scholarships.

The reality is that even non-profits have to make money, and the better job they do at filling their beds the more people they can help.

They also have to make money to pay for supplies, pay their rent or mortgage and utilities, etc. The power companies don’t care what kind of business they are, they still want their money.

We certainly don’t want it to sound like we’re all about the money. If that were the case we wouldn’t be in this field at all. Someone can’t work in the addiction treatment field for years and not have at least some altruistic base in them to keep going. These are important jobs and the people who help save lives should be rewarded for their efforts, whether they work at a for-profit facility or a private, non-profit center.