Using Eb-5 Investment Funding for the Construction of a Substance Abuse Treatment Facility Project

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Why not consider financing the construction and operation of an addiction treatment center or other health care project through EB-5 Investment financing? Although the majority of EB-5 projects involved projects in the hospitality and hospitality sector, the time may have come to put more emphasis on new business ventures related to the hospitality and hospitality sector. to health care. Drug treatment centers are a particularly attractive sector for financing EB-5 investments.

The drug treatment industry in the United States generated revenues of more than $ 34 billion in 2014, an increase of 55% over 2005. The vast majority of these expenditures – almost 80% – were subscribed with public funds, private expenses. According to the Administration of Addiction and Mental Health Services, there are more than 11,000 drug treatment centers in the United States. However, this number of addiction facilities can only treat a very small proportion of those who require treatment services.

In 2014, about 21.6 million people aged 12 and over were classified as drug addicts or addicts in the past year (8.2% of the population aged 12 and over). Of these, 2.6 million were classified as addicted to or abused of alcohol and illicit drugs, 4.3 million with addiction or abuse of illicit drugs but no alcohol, and 14.7 million with addiction or abuse of alcohol. alcohol but no illicit drugs. Overall, 17.3 million people were either addicted to alcohol or abused alcohol, and 6.9 million were addicts or drug addicts.

As a result of the Patient Protection and Affordable Care Act (ACA) of 2010, funding for health care in the United States is at a crossroads. The ACA contains many provisions aimed at reducing health care costs, improving quality and expanding coverage. In addition, the ACA offers states the opportunity to expand their Medicaid programs, which will increase the number of people covered by Medicaid.

The provisions of the law also require that the treatment of drug addiction be placed on the same level of treatment as other major categories of diseases and this requirement of parity means that the coverage of Medicaid treatment and private insurance is extended. These changes fill the system with new payers and customers.

In 2014, ACA implemented 10 mandatory "essential health benefits" for new Medicaid enrollees and for most individual and small group health plans. Drug treatment is one of the categories of services required. According to HHS, new laws and regulations will allow 32.1 million people to access drug benefits for the first time and extend the coverage of behavioral health to 30.4 million people already benefiting of benefits for behavioral health.

Wall Street and other players in the investment industry take note. In 2014, American Addiction Centers, the first publicly traded company focused on treating addictions, raised more than $ 65 million in its initial public offering. Since its IPO, the share price of this company has remained high and the company has grown from 480 to 1,200 beds by the end of 2016. Other major suppliers to the sector are currently buying smaller treatment centers independent and industry with similar IPO objectives.

The drug treatment industry also offers other commercial benefits. Although regulated by public bodies, the medical and professional staff of drug treatment centers is limited compared to conventional medical facilities. The labor and COG factors are very manageable for a new business. The creation of full-time jobs and economic stimulation The surrounding areas are easily reached by an abuse treatment center construction project This factor also makes them attractive for EB-5 investments.

Consider using EB-5 investment funding for an addiction treatment center or other health care sector project, such as an emergency care center or facility. assisted living. The EB-5 investment financing process is available and is a viable financing alternative in different sectors.

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