Drug Rehabs Los Angeles Fights Patient Brokering

Charles Davis
Nov 16, 2018 · 7 min read

Drug rehabs Los Angeles want to bring together the addiction treatment community. The drug and alcohol addiction treatment industry are becoming divided due to patient brokering and new laws regulating marketing.

Drug Rehabs Los Angeles Facing Ethical Business and Marketing

California drug rehabs Los Angeles learning new laws
California drug rehabs Los Angeles learning new laws
Drug Rehabs Los AngelesCalifornia Patient Brokering Laws

The new California patient brokering laws are a direct result of what transpired in Florida with patient brokering. The California laws are stricter in some areas. According to the new law substance abuse treatment centers or individuals can have their licensure and credentials revoked if convicted. This would cause major issues for rehabs and individual professionals. Losing a substance use disorder (SUD) license and, or credentials is a big deal. This would mean they have to close down for about 18 months. This is the time it would take to get new licensure.

Governor Brown signed the SB 1228, Lara. Alcoholism or drug abuse recovery and treatment services: referrals law on September 26, 2018. This law clearly shows that California lawmakers are stepping in the 40 billion dollar a year drug rehabilitation industry. Lawmakers still need to iron out the complicated sober homes portion of the law. Shortly we will see additional laws focused on California sober livings. According to the LA Times, there are 106 sober homes in Costa Mesa, California.

Drug Rehabs Los Angeles Supporting Ethical Standards

Drug rehabs Los Angeles, California is a big part of Behavioral Health Network Resources addiction conferences EMP Series event in Costa Mesa on 8/6/19. The new California patient brokering laws demand financial stewardship in the Treatment Industry. California substance abuse treatment centers need to look at how corporate debt & overspending fuels unethical decision making.

This Executive conference strives to educate California drug rehabs on ethical business and marketing strategies. Behavioral Health Network Resources has provided 14 addiction Executive conferences. These conferences are in a fresh talk show host and town hall forum.

California Treatment Centers Role in the New Law

California drug rehabs learning about new marketing and patient brokering laws.
California drug rehabs learning about new marketing and patient brokering laws.
California drug rehabs need to change business and marketing strategy.

We spoke with Harmony Grove Recovery drug rehabs San Diego, California on proper business and drug rehab SEO marketing practices. This is what they had to say;

“From Los Angeles to drug rehabs in San Diego we need unity. Many centers starting with Florida have closed due to many changes. Drug rehabs in Florida is where it all started. The new regulations are now changing the 40 billion dollar a year industry. This is a time for self-regulation and control. We can not rely on center to center marketing, and google AdWords any longer.”

Having a detailed and robust marketing mix is paramount with the new operating, business and marketing landscape. The nation witnessed Florida centers closing that refused to get educated on and implement a marketing mix. We recently spoke with Charles Davis, CEO, Behavioral Health Network Resources, on national drug rehab marketing SEO trends. This is what he had to say:

Drug Rehabs Los Angeles Needs Help

Los Angeles is not the only area to be affected. Even the best drug rehabs and addiction treatment centers are feeling the pressure. Many substance abuse treatment centers have gotten by with a poor marketing strategy for years.

Now, with the new California patient brokering laws and more competition, a healthy marketing mix must be in place to survive. Many rehabilitation centers including drug rehabs Los Angeles service area need more business and marketing tools.

Game Changers for Drug and Alcohol Addiction Treatment Center Owners

California drug rehabs Los Angeles Mus Adapt to Changes
California drug rehabs Los Angeles Mus Adapt to Changes
Drug rehabs Los Angeles and California Need to Change

Many drug rehabs Los Angeles, Palmdale, California addiction recovery programs are founded with individuals impassioned with a drive to help others heal or alternatively, a clinical degree and an entrepreneurial spirit. What unfortunately many of these well-intention people do not have is a business or accounting background or knowledge of the laws, ethics, and regulations of being in the behavioral healthcare sector. This is a critical factor when a naive person may inadvertently leave themselves open to inappropriate business practices.

In addition to all of the below many centers in California are finding it difficult to produce clients with their drug rehab marketing. There are many challenges to navigate a successful drug rehabilitation center. As in any business, the initial excitement of opening a business is just that — exciting. The fantasies of filling your substance abuse treatment facility, helping people get sober and emotionally well often doesn’t take into account the far less sexy side of doing business.

  • Joint Commission fees
  • State Certification fees
  • continuing education for clinical staff
  • worker’s compensation fees
  • a VERY long list of necessary insurances to safely run a business

These five items alone add up to outrageous proportions. They cost a modest partial hospitalization program (PHP) or intensive outpatient program (IOP) facility 50–75K in a normal operating year. Many times some of these items and an underestimated marketing budget are not in the pro forma budget?

California Drug Rehabs Need to Pay Attention to Finances

California drug rehabs paying attention to finances.
California drug rehabs paying attention to finances.
Drug rehab operators stressing over changes.

As these costs add up, seemingly “out of the blue” due to novice business exposure and lack of proper planning. The pressure mounts and people who began as enthusiastic helpers become indebted and fearful. This places many of the best of us in a vulnerable position to become entrenched in unethical and often unlawful practices. It is the rare entrepreneur who refuses to utilize credit or debt, who only purchases what is within one’s corporate means, and keeps the culture of the financial company lean and honest.

There is a phrase, CEO, Dr. Shari Corbitt instills inside Awakenings culture. It’s from one of our fellowships and is our guiding principle in corporate financial stewardship.

“We live within our means, but our means do not define us. We remain debt free, unburdened by pressure to stray from our values or our ethics to which we are all beholden.”

Bringing Together California Drug Rehabs Los Angeles

Behavioral Health Network Resources carefully watched the new laws develop in Florida. Education and partnerships are the key areas for drug rehabs Los Angeles, addiction treatment centers and sober livings in California. We need to work together and not isolate our individual centers. Sharing information and focusing on clients getting the proper care over profits will play a key role in survival. Regulation in the drug rehabilitation industry is ongoing for lawmakers. The HR 6878 — Eliminating Kickbacks in Recovery Act is in the House of Representatives is in the House of Representatives now and demonstrates other changes are coming. This bill clearly states:

Whoever, with respect to services covered by a health care benefit program, in or affecting interstate or foreign commerce, knowingly and willfully,

(1) solicits or receives any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in-kind, in return for referring a patient or patronage to a recovery home, clinical treatment facility, or laboratory; or

(2) pays or offers any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in-kind —

(A) to induce a referral of an individual to a recovery home, clinical treatment facility, or laboratory; or

(B) in exchange for an individual using the services of that recovery home, clinical treatment facility, or laboratory,

Addiction Conferences Educating Los Angeles C-Suite Executives of Drug Rehabs

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Image for post
California Addiction Conferences for Executives

The California addiction conferences EMP Series event in Costa Mesa on 8/6/19 provides 5 national thought leaders. These Executive panelists provide proven real-world solutions to ethical business and marketing in our industry. There is a battle going on in our industry and lawmakers are trying to protect the vulnerable that need addiction treatment. This event features the following:

  • Special presentation by event Co-chair, Rehab Marketing Pros, “Why are my beds empty?”, How to navigate the landscape of today’s drug rehab marketing, Google, Legit Script, and NAATP.
  • Why Legit Script and PPC is wasting millions of addiction treatment centers marketing dollars
  • The business side of medication-assisted treatment
  • Drug Rehab SEO vs. digital Darwinism
  • Drug rehab SEO, how to get on page one of Google
  • Website development #1 drug rehab marketing mistake
  • Adwords vs. organic marketing
  • How to market on social media
  • How centers can perform SEO in house

Drug Rehabs Los Angeles Let’s Unite

Drug rehabs Los Angeles and California are fighting against patient brokering. There are many major changes occurring in the addiction treatment industry. It is drastically affecting how they must operate to stay open. Let’s unite and get educated on better and ethical business and marketing practices.

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