Fragmented

by Daniel · 0 comments

I read an article on the state of the $25 Billion addiction treatment industry yesterday in Treatment Magazine. They discussed the fragmentation of the industry and how it works against itself in spite of itself. Personally I have witnessed many agency target the names of their competitors for paid Google searches. Seems pretty dirty to me but they do it and apparently let each other get away with it. I would assume a cease and desist by an attorney could help to slow it if not eradicate it, but for the most part if they trademark  their centers name  it must cease.  Imagine Coke allowing Pepsi to use Pepsi as a keyword for more sales!

The article indicates that although there are health groups such as CRC Health that have purchased smaller centers there seems to be a huge gap in the industry. The costs for marketing are so high that smaller centers may be best to be bought out and remain on the management team to keep the essence of small recovery while reducing the marketing and other expenses by working under the umbrella of a large healthcare corporation.

The article identified a new player in the market in South Florida AJ Schreiber of Recovery Road that is on the acquisition hunt apparently to merge forces and grow their recovery center and process within the industry. It is my opinion that although the industry may be fragmented and there is no end in sight of this dilemma for many reasons discussed in the article, the more competition will hopefully bring greater and greater advances to treatment and ultimately lead lives into recovery!

Go, Go, Go…

Dan 🙂

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