Newswires
Wall Street Big Backers of New Build Hybrid Psych/Addiction Centers
Strategic Behavioral Health, LLC 07/16/1017 -ATIN - Wall Street money is pouring into companies that are engaged in rapid growth of new build, medical modeled hybrid psychiatric and addiction centers. This comes amidst a national addiction crisis driving demand and years of high powered promotion by SAMHSA of integrated dual diagnosis addiction care. In stark contrast is the progressive financial withering-on-the-vine of vast swaths of the specialty addiction care sector still clinging primarily to 12-step model spiritual-based addiction treatment, with the huge South Florida addiction treatment hub seemingly especially hard hit.

Just last week Strategic Behavioral Health, a fast growing integrated provider based in Memphis, broke ground on a new $12M psych/addiction facility, its ninth new build in just a few years. In the same time frame, global private equity powerhouse Welsh Carson Andersen and Stowe backed Springstone, which has spent $100M building integrated care centers all over the country. And the announcements by regional medical Springstone hospitals on new behavioral health builds are too numerous to mention.

While this boom is occurring, it is draining high quality commercial payor funds flows away from the traditional specialty addiction care sector, which is heavily reliant on spiritual models of care insurers have been fighting reimbursement on for decades, hobbled by skyrocketing marketing and client acquisition costs. as well as in some cases by a risky lack of payor mix diversification.

Standing out is the formerly vibrant South Florida addiction treatment hub, which until new locally-based competition in recent years accounted for the vast majority of the East Coast's addiction treatment capacity, and met much of the demand. Now even the biggest,at-one-time highly successful addiction centers in South Florida appear to be struggling, with talk of bare bones census and slashed reimbursements as commercial payors key off misbehavior and scandal by a few to signal they are once-and-for-all fed up with non-medical based models.

The upshot is the heyday of the "entrepreneur-in-recovery" - often under-capitalized and sometimes fly-by-night - appears to be over. Cautious, clinical and financial results-oriented big money is taking over, and even they could face rough going in the political risk shark pit that is U.S. healthcare investing.

Treatment Magazine

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written by Scott, July 17, 2017
Whoever wrote this needs an editor and a remedial writing course. I appreciate the message but reading through the mistakes was painful.
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