This has always been a huge problem during economic downturns. It is extremely difficult to reopen mental health clinics in a new location because no one wants them in their neighborhood and they rally to get local government involved to put pressure on the health care provider to find another location. The same applies to drug rehabs. So trying to ride out the economic storm is most critical for these types of clinics.
Another vulnerable area that has been hard hit are the outpatient Clinics for chemotherapy which are expensive to keep open. There are many patients who cannot afford to travel into the cities for their treatment.
The good news is that the economic upturn has started and we have turned the corner so the majority of the damage is behind us. We need to start focusing on growth vs merely maintaining what we have.
Oh yeah, definitely. Ignore the rest of the risk factors mentioned and the recent vintage of this report. Aspen offers more than drug rehab don't they? Considering Aspen's "reputation" and the countless hours you log as an apologist for them, why would any community not welcome the program's tough love and "great success"?
Again, from CRC's Annual Report:
If our programs are unable to maintain such licensure, certification and accreditation, our revenue may decline, our growth may be limited and our business may be harmed.
In addition, many states impose similar, and in some cases more restrictive, requirements. For example, some states impose laws governing the use and disclosure of health information pertaining to mental health and/or substance abuse issues that are more stringent than the rules that apply to healthcare information generally. As public attention is drawn to the issues of the privacy and security of medical information, states may revise or expand their laws concerning the use and disclosure of health information, or may adopt new laws addressing these subjects. Failure to comply with these laws could expose us to criminal and civil liability, as well as requiring us to restructure certain of our operations.
Why does Aspen have such a problem complying with patient privacy?
Accidents or other incidents involving the students at our youth treatment facilities, or those of our competitors, may adversely affect our revenues and operating results directly or through negative public perception of the industry.
This is unfolding as we speak with Sagewalk's reckless negligence in the death of a patient causing a public outcry. This is nothing but a self fulfilling prophecy for the shareholders.
Accidents resulting in physical injuries to our students or staff, or incidents that attract negative attention to the youth treatment industry generally, such as those involving death or criminal conduct against, or by a student could result in regulatory action against us, possible legal claims and lost referrals or student withdrawals. Similar accidents or incidents at programs operated by our competitors could negatively impact public perception of the therapeutic education industry and harm our operations as well. No assurance can be given that accidents or other incidents at our programs or those of our competitors will not adversely affect our operations.
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Competition
Treatment providers for the large and growing substance abuse treatment market are highly fragmented, with services being provided by over 13,000 different facilities of which only 26% are operated by for-profit organizations. The primary competitive factors in the substance abuse treatment industry include the quality of programs and services, charges for programs and services, geographic proximity to the patients served, brand and marketing awareness and the overall responsiveness to the needs of patients, families and payors. Our recovery division competes against an array of local competitors, both private and governmental, hospital-based and free standing and for-profit and non-profit facilities. Most of our residential facilities compete within local or regional markets. Sierra Tucson, our residential treatment facility for addiction and other behavioral disorders, in contrast, competes in both national and international markets with other nationally known substance abuse treatment facilities such as the Betty Ford Clinic and Hazelden.
Providers of youth treatment services are also highly fragmented with services being provided by over 500 different facilities. Our youth division competes with a large number of single-site businesses that lack our name recognition and management resources, as well as a handful of larger companies who have divisions that provide youth treatment programs, such as the youth programs of Universal Health Services, Second Nature and Three Springs.
13,000 substance abuse treatment programs and over 500 "different" programs. Wow, not even the GAO attempted to nail down an estimate of the number of programs in existence. That is disgusting.
The next misfortune to trouble the CRC stockholders will be the PA Juvie scandal, bets are being placed on whether Aspen is going to be at the top of the list of fools. John D. Reuben might have to drive into Allentown for police questioning about the nature of his activities regarding STICC and Aspen.
