Getting inside the 40 billion dollars a year drug and alcohol addiction treatment industry is not an easy task. It requires specific industry intel, legal knowledge, education and marketing experience specific to the rehab industry. The industry is undergoing tremendous change in the way it generates clients.
In Florida, there are new rehab marketing laws as of July 1, 2017. Florida has paved the way for national laws being invited to testify on House Subcommittee on Oversight and Investigations. Many centers are closing in Florida due to the new regulations, and lack of marketing knowledge. Even with all the turmoil there are many new start-ups entering the industry. With new national laws on the horizon you need to be prepared, or you will not survive.
Here’s the Deal on Addiction Treatment Center Start-ups
As addiction treatment center consultants, we are seeing a flood of wall street investors entering the rehab industry. Many are struggling due to the lack of a well thought out business plan, marketing plan, pro-forma and enough investment capital to support the first 12 months of operation (including marketing costs.)
Legal Issues, and Marketing Mistakes by New Start-ups
The biggest and most costly mistakes made by new addiction treatment center start-ups are proper industry related legal counsel, and an effective rehab marketing strategy. This subject should be brought up by all addiction treatment center consultants.
Addiction Treatment Center Legal Counsel
There is regulation, and a tremendous amount of properly filed, documented processes and licensure in this space. The legal ramifications include fines, felonies and jail time. Having a law firm that specializes in healthcare is paramount.
Rehab Marketing Mistakes by New Start-ups
The #1 over-looked, and disrespected aspect of opening a treatment center is marketing. There is a tremendous amount of competition from the 14,000 addiction treatment centers across the US. Many of these centers have years of industry marketing and business experience, and this is one of the reasons you need addiction treatment center consultants. You cannot cookie cutter marketing from other industries and expect to survive. We see this everyday and try to educate those attempting to enter the industry. Many new centers make the same business and rehab marketing mistakes causing them close their doors, or even worse result to patient brokering.
Accurate and Detailed Addiction Treatment Center Pro-forma
The first step before even considering entering the addiction treatment industry is a detailed pro-forma. This provides you an idea of the start-up costs needed to open a drug and alcohol addiction treatment center. This vital document provides a road map of the costs of operation, and what you need to prepare to open your new center.
The pro-forma needs to outline 3 months, 6 months, 9 months, a year, 3 years and 5 years of operating. It should cover current industry costs and reimbursements…
- type of center your opening
- potential revenue generated by each level of care (PHP, IOP, etc…)
- organizational costs
- legal costs
- licensing (CARF, JACHO)
- billing (in-house, or outsourced)
- operational costs
If you would to purchase the pro-forma our addiction treatment center consultants use that includes; sales forecasting, personnel, P&L, cash flow, balance sheet, interest calculator and sources and usage, click below. The pro-forma will include all of the above, after you plug in your specific numbers it will do all the calculations for you giving you a starting point for your financial needs.
Existing Treatment Center Marketing Mistakes
If you’re an existing treatment center and you found our page, it is most likely you have consistently sought a short-term solution to your long-term problem of maintaining a census. Addiction treatment and healthcare services are extremely special, specific and very complex to market. Many centers are struggling to figure out ways to generate clients and maintain their centers.
Many of the existing centers we speak with every day as addiction treatment center consultants suffer from digital Darwinism. They have managed to survive by hiring outreach positions (lasting about one year each) to generate their referrals. While this can be effective, it cannot be the main source of your revenue. The value of being on page one of Google out performs all other marketing combined, generating 1000’s of calls.
Common Mistakes of Web Rehab Marketing
Out of the dozens of calls we get every week, about 99% have little knowledge of ethical, white hat web marketing. Almost all of them say web marketing does not work. When we pull up their websites we see the same mistakes being made repeatedly. Web marketing will not work, unless you have invested in the proper foundation. Google will not rank you, unless they know you are a legit, and valued resources.
Top 4 Rehab Marketing Costly Mistakes
The number one mistake of existing treatment centers that we point out as addiction treatment center consultants is poor website structure. This is the most important step in laying your web foundation. Poor structure causes Google to either not read or penalize the website. Many centers elected to take the cheapest route when their website was built. This has proven to be costlier than they realized because without the proper foundation traditional web marketing will perform poorly. A good website, by an industry specific professional should cost between $4,000 – $5,000 for most treatment centers.
Other common mistakes include:
- Poor SEO, or no SEO
- No NAP (name, address and phone), or inconsistent NAP
- Lack of citations
- Lack of credible inbound links
- Poor social media presence
Experienced Addiction Treatment Center Consultants
Behavioral Health Network Resources has hosted our Executive EMP conferences (Ethical Marketing Practices) for 4 years (11 conferences) and learned from industry thought leader panelists on the business side of addiction treatment. These events have given us access to some of the industry’s most successful business leaders, and we have put them in our network. Give us a call today, and we can point you in the right direction to avoid costly mistakes for start-ups, and existing centers.