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U.S. Addiction Rehab Industry Pivots During Covid-19 Pandemic

Marketdata Industry Report
Marketdata Industry Report

"The pandemic has been a mixed bag for this industry so far."

July 16, 2020:   Marketdata LLC, a leading independent market research publisher covering service markets since 1979, has released a new 20-page report entitled: The U.S. Addiction Rehab Industry: Pandemic Update .  This update  discusses: addiction treatment center operational changes, the shift to virtual visits, a shift to more outpatient care, impact on federal state and local program funding, findings of recent industry surveys, examples of reduced caseloads and state actions, potential facility closures, how the industry may actually benefit from the pandemic, and revised 2020 and 2025 market growth forecasts.
This special Update is available to all buyers of Marketdata’s original January report: “The U.S. Addiction Rehab Industry.”
“The pandemic has been a mixed bag for this industry -- less patients and revenues on one hand, but accelerated and much needed technology changes and easier access for patients on the other hand.”, according to Research Director, John LaRosa.
Major Findings:

* Market Value…  Marketdata analysts estimate that the drug & alcohol addiction treatment industry will be worth $38.2 billion this year, lower than the original $42.1 billion expected.  Moderate but steady 5.2% annual growth in revenues is forecast through 2025, reaching $48 billion. 2021 could be a strong growth year, after a Coronavirus vaccine is found and pent up demand produces a wave of new and existing patients.

* Most addiction treatment centers have remained open during the pandemic, but many are seeing reduced patient caseloads, as much as 30% to 50% lower than normal. Revenues in 2020 are forecast to decline by 13%.

* Due to failures, Marketdata expects a 5% decline in the number of specialty treatment facilities in operation, to 14,560. American Addiction Centers, a leading provider, has already filed for bankruptcy.

* There is major shift away from inpatient to more outpatient treatment during the pandemic.

* Financial pressures are increasing for treatment centers, as states cut their funding due to lower revenues resulting from the recession. The industry has appealed for government relief but is still waiting.

* The shift to telemedicine/virtual visits has resulted in more substance abuse patients receiving care – a good thing. Increasing telehealth and loosening prescribing laws (for buprenorphine, methadone) during the pandemic have revealed the merits of lowering barriers to treatment. Normally, prescribing these medications requires an in-person evaluation.

* A total of 3.7 million persons were treated in 2018, but there were 21 million persons in need of treatment. Only 11% of substance abusers actually receive treatment.

* During the pandemic, not only has the supply of illicit drugs become more unpredictable, but the drugs are also more likely to be contaminated. The pandemic is disrupting supply lines of illegal drugs, leading patients to cut the substances with whatever they can find. Overdoses are rising.

* An estimated 53 million Americans aged 12+ were illicit drug abusers in 2018, according to government agencies. An estimated 4-6 million are opioid abusers, a figure that has soared in recent years.

About The Study and Update
The U.S. Addiction Rehab Industry , January 2020, is an independently researched industry study that is 116 pages long, has 36 Tables & Charts, 9 competitor profiles, and costs $1,295.  The new 20-page July 2020 Pandemic Update is included FREE with purchase.  Brochure and table of contents available. John LaRosa available for interviews. Contact: Marketdata LLC, 7210 Wareham Drive, Tampa, FL  33647. (813-971-8080). Email:

This study examines the nature of the business, types of rehab, reasons for the recent growth of addiction rehab services since the Great Recession and passage of the ACA, national receipts/growth from 1983-2018, 2020 and 2025 forecasts, average facility revenues and operating ratios, industry structure and participation by non-profit, for-profit, inpatient and outpatient programs, extensive drug/alcohol abuser demographics, destination markets in FL and CA, industry history and evolution, and key industry trends and issues, as well as major competitor profiles.
A 19 pp. Overview summary available for $99, at:

Marketdata LLC, is a 41-year old independent market research and consulting firm that publishes market and industry studies covering a wide range of service and healthcare sectors. The company also performs custom research, consulting, teleseminars and conference calls.


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