June 26, 2016; Cape Cod Times
As circumstances change, venture capital money and for-profit organizations are crowding into areas of addiction and mental health treatment that were previously covered mainly by nonprofit entities.
Massachusetts Chapter 258, passed in 2014, requires insurers to cover 14 days of in-patient addiction treatment without prior approval. It has been a boon to enterprising rehab facilities unwilling to settle for state reimbursement rates. Another factor that makes substance abuse treatment potentially more lucrative is the fact that that children can stay on their parents’ insurance plan until the age of 26.
The need for behavioral health services has been there all along, but the money was absent until the passage of Massachusetts’ Chapter 258 and the federal Affordable Care Act. “Venture capitalists, who are the ones lending the money, see behavioral health as a growth area,” said David Matteodo, executive director of the Massachusetts Association of Behavioral Health Systems. Kenneth Weber, whose