In October American Addition Centers, which runs 8 facilities in 6 states, went public. Currently valued at about $588 million, the company’s stock price has almost doubled since its IPO, from $15 to $28. In 2013 its revenue was $116 million, up from $28 million in 2011.
AAC’s IPO underwriters estimate there are 8,100 substance-abuse treatment enterprises across America, operating 16,700 clinics and centers. The market is estimated to be worth $35 billion.
This month’s Bloomberg Business has an in-depth story on AAC, “Addiction Treatment Goes Public: AAC’s Recovery-Center Empire” and its founder Michael Cartwright as well as a look into the history of treatment centers in the U.S.
New federal and state laws are improving addicts’ treatment options. In 2008, Congress passed the Mental Health Parity and Addiction Equity Act, which requires health plans to provide the same dollar limits for mental-health benefits as for medical and surgical benefits. This is a step in the right direction, as are the additional beds AAC and others have added: while almost 23 million Americans suffer from addiction, only about 4.1 million receive treatment each year, according to 2013 data from the U.S. Substance Abuse and Mental Health Services Administration. Read more…