New Jersey Inpatient Expansion by GenPsych Competitive Threat to Florida

Addiction Treatment Industry Newswire
08/05/2012 -ATIN- Fast growing New Jersey addiction treatment, drug rehab and alcohol rehab provider GenPsych is planning to open three new centers, with as many as 100 beds, in a huge expansion of private inpatient services for the state, which has seen an erosion of local residential services post managed care as South Florida providers have aggressively tapped a rich New Jersey vein of out-of-network benefits. “We expect to have our planned entrance into the New Jersey inpatient market complete and fully functioning at the beginning of next year,” says GenPsych founder Dr. Henry Odunlami, an entrepreneurially inclined psychiatrist, adding that planned locations are in Lebanon Township, Chester, NJ and Hillsborough, NJ. The new GenPsych inpatient operation will be a significant competitive threat to players like Behavioral Health of the Palm Beaches, BHOPB, who have focused on New Jersey’s well insured populace – the heavily unionized Northeast has by far the best insurance coverages for addiction in the nation – as a major source of clientele. BHOPB President Jack Coscia got his start in the business 
through union EAP work and is one of the most experienced and prolific plyers of union contacts in the addiction treatment business. Reliable sources tell Treatment Magazine that Coscia, before he teamed with the late Dr. Don Mullaney to found BHOPB, may have gotten into some legal trouble through the overly aggressive use of union contacts. Coscia did not return a text message seeking comment, nor did his public relations representative return a phone call. As complaints by New Jersey clients about the quality of care at BHOPB have arisen in recent years, GenPsych may be opening its inpatient operation at an opportune moment by providing an alternative for consumers. Furthermore, GenPsych will be seeking an in-network relationship with a broad array of carriers, which will be attractive to consumers as it will mean SIGNIFICANTLY less out-of-pocket expenses for clients than at South Florida centers, which often tap out-of -network benefits in Northeast states like New Jersey. “We expect the average inpatient stay to be just two weeks or so as our continuum of care model envisions using our outpatient operations to deliver step down levels of care for our clients,” says Odunlami.