The drug and alcohol rehabilitation industry includes all the clinics and rehabilitation centers with experienced and qualified medical personnel that provide various inpatient and outpatient treatments, related to diagnosing and treating of all types of substance, drug and alcohol addiction. The industry provides services like diagnosis of symptoms, detoxification programs, intensive inpatient and outpatient services and opioid therapy services with the help of medications.
The market of rehabilitation clinics is steadily on the rise. Especially there is an increasing interest in Luxury Rehab Facility. The implementation of patient protection and affordable care act, and the increasing rate of employment have led to an increase in the affordability of consumers to go for rehabilitation services. This factor has led to increased margins for rehabilitation clinics. The rising cases of opioid addiction, has also led to the increase in demand for services from these centers.
The industry has moderate entry barriers. The rehabilitation industry is very fragmented and does not have the monopoly of a single provider. But the industry is dominated by non for profit organizations. The requirement of highly skilled and trained staff and requirement of accreditations and licenses from government regulated bodies are the major requirements for entering into this industry. The rehabilitation industry has a stiff competition among the various big and small players, and attracting potential customers is a tough task for new entrants. Customers pick clinics based on the recommendations and referral of their family and friends, making the task of attracting customers tougher for the new entrants.
For a new Luxury Rehab Facility to be successful and running, it needs to be in close proximity to the key market. The facility must not be located in a far away location which is difficult to reach. If most of the patients who receive outpatient programs find it difficult to commute to the center regularly, they might opt for another nearby center. Selecting a right location is of utmost importance. The next important factor is to employ qualified and experienced personnel to take care of the patients. The facility must comply with all the regulations set by the local government.