COVID-19 is fueling an explosion in drug overdose deaths nationally. Drug overdose deaths soared nationally to the highest number ever recorded.
It’s been “like pouring gasoline on a fire,” says Lane Slaten founder and CEO of CWMN LLC, national developer of behavioral health inpatient facilities.
The CDC says the latest numbers suggest an acceleration of overdose deaths during the pandemic. Nationwide, they rose 26% in the 12 months ending in May. Covid-19 has more people seeking addiction and mental health help, but treatment centers are in short supply, which is exacerbating opioid overdose deaths. “The problem is there is an enormous shortage of substance abuse inpatient treatment facilities nationwide” said Slaten.
In this covid climate, there has been a flood of private equity (PE) investment paying close attention, and private-equity firms are starting to pile into the new business opportunity of addiction treatment facilities, drawn by soaring demand, expanded insurance coverage, and the chance to consolidate a highly fragmented market. The firms are acquiring or expanding clinics that provide everything from detox and residential care to outpatient and methadone treatment. In some cases, private-equity firms have approached not-for-profit outfits in an attempt to buy and convert them to for-profit entities, say treatment-center executives.
Mr. Slaten is positioning himself to become the “driving force” in growing turnkey-ready inpatient facilities from coast-to-coast. “I’m committed to developing up to three large residential care facilities a year to help dampen the coming inferno post covid” Slaten explained. Currently he is finalizing the development of his second inpatient facility in the Kansas City Metropolitan Area. It’s a 86,000 SF turnkey-ready 120 bed capacity residential care facility that was recently listed on LoopNet.com for $6,900,000. More property information can be found at www.InpatientFacility.com or take a quick video tour.