In-Patient or Out-Patient Options - Benefits and Concerns of an Addiction Center Business

If you have decided that your contribution to the addiction recovery industry will be to open a center, congratulations.

Before you get started, there are some things that you need to consider. This includes whether your business will operate as an inpatient or outpatient treatment center. 

While both options can be useful to those who enter rehabilitation, your business will have benefits and concerns depending on your choice. Knowing what you may encounter as a business will help you make the best choice. Here are a few benefits and concerns you should take into consideration.


It is important to realize that both types of centers must adhere to the regulations put forth by the Americans with Disabilities and Rehabilitation Act. Additionally, addiction treatment centers are subject to state, municipal and city regulations.

Another similarity is that licensure and accreditation play a role in a treatment center’s ability to take health insurance as payment for its programs. State licensure is required for all addiction treatment centers. The licensure may vary depending on an addiction treatment center’s categorization, but no center can operate legally in the state without going through the government. 

National accreditation, such as The Joint Commission or the Commission of Accredited Rehabilitation Facilities, are optional. However, business owners must be aware that earning any one of these accreditations can allow them to take on health insurance that will cover a large portion of the payment for its programs.

Inpatient Treatment Centers

Inpatient addiction treatment centers require that a center have adequate facilities to house their patients. Business owners who are prepared to coach their patients throughout an intensive stay, including living arrangements and intensive medical care, are best suited for this path.

Inpatient treatment centers include a facility stay, meaning that it needs to undergo health and safety inspections on the building itself. This is a concern that can delay the opening of the center or close if violations are found. The center may also be subject to additional regulations that require the center to only employ licensed practitioners.

Another concern is how patients pay for their treatment. Inpatient centers can be partially covered by health insurance, but the programs are much more expensive than outpatient options. While it’s possible to run a center as a nonprofit organization, fundraising may be an added hassle for business owners.

Outpatient Treatment Centers

Outpatient treatment centers can be a good alternative for business owners who find the bureaucracy of the inpatient option cumbersome. With slightly fewer regulations, a flexible schedule, and better relationships with insurance companies, it can be a great move for a business owner.

Outpatient treatment centers have a lot of benefits for owners who are good at building relationships. Because these centers often follow intensive inpatient programs, these businesses generally are referred by healthcare facilities and an individual’s own health insurance company. 

Business owners that understand the benefits and concerns of their choice to operate as an inpatient or outpatient addiction treatment facility will be able to make a good decision. This short primer will enable business owners to take certain factors into consideration and enable them to move forward with their decision. One very important area of opening a center to note is the marketing of a center changes based the level of care.  Residential (inpatient) treatment has a much higher value, so the competition will be higher. Consult a professional addiction marketing company to understand more.