Blog
Traditionally, SUD treatment centers have relied on healthcare insurance programs , but in an ever- evolving industry, we are seeing that this model is no longer sustainable due to increased costs and claims restrictions. The following four cornerstones reveal what SUD treatment providers must focus on to achieve a successful, sustainable business model.
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1. Aftercare conundrum: In most cases, SUD treatments are successful while clients are participating in active treatment (residential or outpatient programs). However, the likelihood of relapse greatly increases in the year following discharge. That leaves us to wonder what happened (or did not happen) between discharge and the one-year mark.
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Operations: One full time dedicated employee with at the very least a bachelor’s degree, general computer knowledge (office or equivalent), preferably knowledgeable in the nonprofit organization’s purpose
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How much does it cost to set up a nonprofit? To have a truly operating nonprofit organization, set-up costs will amount to $ 21,350, and yearly costs will amount to $ 117,150.
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Does the Plan call for the Creation of a Non-Profit?
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1. A macroeconomic and historical perspective: The introduction of the Affordable Care ACT (ACA) brought two important segments of the U.S. healthcare system to light.
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Aside from being illegal, kickbacks are ethically and socially indefensible. However, it is important to acknowledge that economic challenges can blur judgment, and that some practices that, at first sight, may look like innocent marketing creativity are in fact kickbacks in disguise.
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This roadmap is a compilation of solutions to actual situations. It is not a one-fits-all and final document of reference, nor a piece of legal advice. It is aimed at initiating an in- depth approach to the issue of referrals in the SUD treatment industry.
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When it comes to referrals in connection with healthcare services, there are many laws and regulations that attempt to provide a safe environment in the SUD treatment industry1.
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When one considers their business to be evaluated, the first questions that come to mind are: (1) When do we need a business valuation? (2) How does the valuation process work?, and (3) Is the process costly?
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For over 30 years, we have been involved in businesses valuation. Throughout this time, overall economic trends, methods, standards, base ratios, and other technical tools have changed dramatically.
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After the ACA mandated insurance companies to cover addiction treatment and mental health, healthcare insurance and governmental sponsored programs adapted. They implemented operating standards that have affected major healthcare providers and research centers as well.
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The ACA created various mandates for mental health and addiction treatment that were to be covered by mandatory premiums and governmental funding. Unfortunately, the Supreme Court gutted the premium mandate, putting the healthcare insurance industry in a bind. In addition, the program turned out to be more costly than expected. This led insurance companies to seek greater accountability from providers while limiting their financial exposure through various mechanisms.
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Too often quality or ambitious clinical programs do not get the resources they need to successfully help clients in their journey in recovery. Most of the time, this unfortunately stems from inadequately set priorities. Traditionally, financial constraints will dictate how programs are run. It should not be that way.
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