Trend in Drug Rehab – New Money Entering Addiction
I get a fair amount a calls from entrepreneurs as well as investor types who want to either open a new drug addiction treatment center or want to acquire several addiction treatment centers. The new money is driving up the cost of marketing expenses also know as Google Adwords. By sheer brute force in money a new center can dominate the SERP’s or the search engine results pages….however they can only do it for so long.
We are also starting to see new money in the way of private equity funds or hedge funds wanting a piece of the lucrative addiction pie. The fact that mental health coverage in PPO insurance policies are covering addiction treatment is probably the single biggest driving factor.
We are not only seeing this private equity trend in the drug rehab industry but it is going on everywhere. One has to ask is this a good thing? Only time will tell. Go to minute mark 21:38 in the video below.