Introduction

Finding drug rehabs for sale can take time and requires patience and sometimes a fair amount of work.  In our document we have attempted to give you a realistic look at the drug rehab industry and where to start looking for addiction treatment centers.  Finding drug rehab centers is easy.  Finding drug rehab centers for sale is not so easy.

Understanding the Types of Rehab Centers

Before embarking on your search, it’s crucial to identify the type of rehab facility that aligns with your goals and expertise. Here are some common types:

1. Inpatient/Residential Treatment Centers (RTC): Provide 24/7 structured environments for long-term treatment.
2. Detox Centers: Offer medically supervised withdrawal management, either as standalone facilities or part of larger programs.
3. Partial Hospitalization Programs (PHP): Intensive day treatments where patients return home at night.
4. Intensive Outpatient Programs (IOP): Flexible programs allowing patients to maintain work or school commitments.
5. Outpatient Treatment Centers: Suitable for mild substance use disorders or ongoing support.
6. Medication-Assisted Treatment (MAT) Centers: Combine medication with counseling, often for opioid and alcohol addiction.
7. Methadone Clinics: Specialized MAT programs using methadone for opioid addiction.
8. Sober Living Homes: Transitional housing providing structure and peer support.
9. Dual Diagnosis Treatment Centers: Address both substance use disorders and co-occurring mental health conditions.
10. Faith-Based or Holistic Rehab Centers: Incorporate spirituality or alternative therapies.
11. Luxury or Executive Rehab Centers: Offer high-end amenities and privacy for professionals.
12. Adolescent/Teen Rehab Centers: Designed specifically for youth with specialized therapy and education support.
13. Veterans & First Responder Rehab Centers: Tailored programs for military personnel, police, and emergency responders.
14. LGBTQ+ Friendly Treatment Centers: Focus on cultural competency for LGBTQ+ individuals.
15. Telehealth Services: Provide remote treatment options, often covered by insurance.
16. Office-Based Opioid Treatment (OBOT) Services: Primarily Suboxone clinics requiring higher patient volumes.

Determining Your Desired Location

Geographic location plays a significant role in the success of a rehab center. Consider factors such as:

• Reimbursement Rates: These vary by state and can impact profitability.
• Market Demand: Assess the need for addiction treatment services in the area.
• Regulatory Environment: Understand state-specific licensing and operational requirements.
• Labor:  Know where the behavioral health labor shortages are and where they are going to be

Engaging with billing companies specializing in the drug rehab space can provide insights into reimbursement rates and payer mixes.

Strategies to Find Rehab Centers for Sale

1. Online Business Marketplaces

Several platforms list healthcare businesses for sale:

• BizBuySell: Offers a wide range of healthcare and fitness businesses, including rehab centers.
• LoopNet: Focuses on commercial real estate, listing properties suitable for rehab facilities.
• DealStream: Provides listings for counseling and mental health practices.

2. Industry-Specific Brokers

Engaging with brokers who specialize in the behavioral health sector can provide access to off-market deals and pocket listings. For example, Addiction-Rep with eXp Commercial offers brokerage services tailored to the addiction treatment industry.

3. Networking and Conferences

Attending industry conferences can facilitate connections with rehab center owners and operators. Notable conferences include:

• AATOD (American Association for the Treatment of Opioid Dependence)
• ASAM (American Society of Addiction Medicine)
• NAATP (National Association of Addiction Treatment Providers)
• HMP Global Behavioral Health & Addiction Conferences

These events provide opportunities to learn about industry trends and potentially discover centers for sale.

4. Social Media and Professional Networks

Joining specialized groups can help in identifying potential opportunities:

• Healthcare Executives Network
• Addiction Professional Network
• Mental Health and Private Practice Marketing & Management

Engaging in these communities can lead to valuable connections and information about available facilities.

5. Government and Public Directories

The SAMHSA (Substance Abuse and Mental Health Services Administration) provides a comprehensive database of treatment facilities through FindTreatment.gov. While not a sales platform, it can be a starting point for identifying existing centers. SAMHSA

Due Diligence and Evaluation

Once you’ve identified potential facilities, thorough due diligence is essential:

• Financial Analysis: Review financial statements, payer mixes, and occupancy rates.
• Licensing and Accreditation: Ensure the facility meets state and federal regulations.
• Staffing: Assess the qualifications and stability of the current team.
• Reputation: Research the center’s standing in the community and any past compliance issues.

Engaging professionals such as healthcare consultants, accountants, and legal advisors can aid in this process.

Making the Offer

When acquiring an addiction treatment center, one of the most critical decisions a buyer must make is whether to structure the transaction as an asset deal or a stock deal (or membership interest purchase in the case of an LLC). Each approach has its own legal, financial, and regulatory implications—particularly in a tightly regulated industry like behavioral health, where licensure, accreditation, payer contracts, and change of ownership (CHOW) processes vary widely from state to state.

Asset deals involve purchasing selected assets of the business—such as licenses, contracts (subject to assignment), intellectual property, equipment, and goodwill—while leaving behind liabilities, debts, and corporate entities. From a buyer’s standpoint, this structure offers greater protection against unknown liabilities, lawsuits, or compliance issues tied to the prior ownership. Asset deals also give the buyer the flexibility to “cherry-pick” which assets to acquire and often allow for favorable depreciation tax treatment. However, the downside is that asset deals almost always trigger a full CHOW, which may require the buyer to reapply for state behavioral health licenses, DEA registrations, Joint Commission or CARF accreditations, and even payer contracts. This can delay operations or temporarily suspend billing during the transition period. States like California, Florida, and New York, for example, have lengthy approval processes that can take several months, especially when background checks and zoning reviews are involved.

Stock deals (or membership interest purchases for LLCs), on the other hand, involve purchasing ownership of the existing business entity. The corporation or LLC remains intact, meaning all licenses, contracts, accreditations, and payer agreements typically stay in place. This allows for a smoother transition and continuity of operations, often avoiding the delays and uncertainty associated with CHOW. For facilities heavily reliant on insurance billing, the ability to keep contracts uninterrupted is a major plus. However, stock deals come with increased risk: the buyer inherits all known and unknown liabilities, including potential fraud, billing audits, labor issues, or regulatory violations. Extensive due diligence is essential to uncover any hidden risks, and indemnification clauses must be carefully negotiated. Additionally, certain states and payers still require notification or partial CHOW filings even in stock transactions, so assuming continuity isn’t always automatic.

In sum, asset deals are cleaner and safer from a liability standpoint but may come with licensing and operational delays due to CHOW. Stock deals offer continuity and speed but carry more legal and compliance risk. The best approach often depends on the facility’s existing compliance record, payer mix, the state’s CHOW rules, and the buyer’s operational capacity to manage licensing transitions. As a seasoned broker in this field, your role includes guiding clients through this complexity, ensuring that both legal and regulatory frameworks are aligned with the buyer’s risk tolerance and business goals.

In a competitive market, being prepared to make a prompt and fair offer is crucial. Too often analysis is paralysis.  If you like the deal, go with your gut then do the due diligence. If you don’t like it then bail out fast and don’t waste anyone’s time.  We have seen some deals get scooped while the deal itself is still being passed around another management team for approval…..and there is always going to be someone on the team that is in favor of killing the deal.

Understand that many rehab centers for sale may have complexities or “hair” on them. Identifying areas where you can add value or improve operations can make a deal more attractive.

Conclusion

Finding and purchasing a rehab center requires a strategic approach, combining industry knowledge, networking, and thorough evaluation. By understanding the types of facilities, determining your desired location, leveraging various platforms and networks, and conducting meticulous due diligence, you can position yourself for a successful acquisition in the behavioral health sector.