Don’t Overlook the Business Side of the Recovery Industry
There’s no doubt that the substance abuse, behavioral health, and addiction rehabilitation industry is undergoing a tremendous amount of change.
The industry has been shaken by incidents such as the discovery of fraudulent practices occurring in the state of Florida which has caused a sense of being “in transition” across the entire system.
The high demand for recovery services hasn’t changed, in fact, the need is on the rise. But with higher standards in place, how can a center achieve and maintain the state of ethical, operational, and financial health that is required to be successful? What does it take to meet compliance standards and be a front-runner in this competitive market?
Often times, a recovery center is owned, operated, and staffed by highly capable professionals who are dedicated to helping others going through addiction recovery — possibly one of the toughest times in a person’s life. Where some centers fall short is on the “business side” — operating efficiently and generating enough revenue to remain profitable, to grow into the future, and to weather the lean times that are inherent to the industry.
It’s true that many new companies are forming due to the high demand for addiction recovery services. If you are thinking about purchasing an existing center or opening a brand new facility to capture the momentum, there are many factors to consider when selecting companies that you will partner with to help you achieve and maintain the highest levels of efficiency and financial accountability.
You will want to avoid the pitfalls that many centers experience when they make hasty decisions on which billing company to choose based on lowest cost or speed of implementation without looking at the longer-term viability of the partnership.
The logistics of a recovery center can be difficult enough. Blending those logistics with running a financially healthy operation can add to the difficulty.
Here is a short list of the logistics you must consider early in the planning phase of purchasing or running a recovery facility:
- Billing functions
- Denial management
- EMR / Scheduling software
- Reporting and analytics (performance, financial, etc.)
- Starting capital (loan)
While this list can seem daunting, upcoming blog posts will go into greater detail on how you can integrate these functions into your center as you design and implement a healthy operation — ethical, operationally efficient, and financially sound.