BLVD Centers has a new and aggressive growth plan to take advantage of the fast-growing drug and alcohol rehabilitation services market in the US. With more than 26 million Americans suffering from addiction, the market is still largely underserviced.
THE NEW BLVD BUSINESS MODEL
By recruiting local partner/operators to develop, operate and manage a local marketing and staffing strategy, the drug treatment centers are effectively run as independent small businesses, which reduces BLVD’s corporate overhead and ensures that the partner/operator can tailor their marketing, as well as staffing model, to the needs of the market.
EACH GEOGRAPHIC MARKET IS UNIQUE
While treatment protocols are generally standardized around the country, with individual and group therapy being the core of the services, every market has a different patient referral culture and service expectation from staff.
From Florida to California to Oregon or Vermont, each market is unique in the way patients choose the centers where they are treated. Insurance companies differ in each location and staffing requirements may also differ in each market, depending on competition or culture. Patient treatment duration and family involvement also is unique in each market.
The BLVD Centers business model takes advantage of these realities by investing in the local partner/operator, giving them the ability to choose staffing levels and maximize operating margins.
ENHANCING CORPORATE REVENUES
By employing this model, BLVD Centers empowers the partner/operators to drive patient census, as they are marketing experts in their local market, which enhances corporate revenue.
With the decentralization of treatment operations and sales & marketing, the management team is able to focus more heavily on expansion. Also, the business model allows for quicker expansion than previously due to the aforementioned decentralization.
BLVD Centers simply retains a healthy portion of the collected revenues of each center. The percentage depends mostly upon the amount of centralized services the partner/operator will need from BLVD Centers – ranging from the amount of capital needed to start the center to the size of the center to the type of insurance companies the center will accept, there are a number of factors that drive the economics of the agreement.
REDUCING CORPORATE COSTS
As part of the model, BLVD Centers does not employ any of the staff at any of the centers – that is left to the partner/operator. Nor does BLVD Centers fund any of the marketing and sales costs to enroll patients to the center. This has significantly reduced corporate costs and allowed BLVD Centers to retain profits.
THE BLVD CENTERS VALUE PROPOSITION
Partner/Operators are typically well connected to the local addiction market, its referral sources and treatment staff. While they can potentially fill a 30-50 seat outpatient center or a 12-20 bed inpatient center, or both, they often lack some key requisites to be successful in launching and managing their own center.
This is where BLVD Centers steps in and provides:
- Real Estate or lease-hold acquisition
- Small initial operating loan (senior secured with a UCC-1 lien)
- Facility space and comprehensive design, including award-winning décor and functional facility lay-out for both inpatient or outpatient centers
- Connection to the nationally known BLVD Centers “Sober is Sexy” Brand, as well as brand training and specific insurance reimbursed activities supporting fun in sobriety
- Ability to leverage a nationally recognized brand with insurance payors
- Dedicated 24-hour call center for patient intake with highly trained BLVD brand specialists
- Clinical data services access and support
- Sophisticated printed and electronic marketing support
- Operational launch binder with guidance and support
- Services to quickly navigate complicated licensing and accreditation
THE BRAND – “SOBER IS SEXY”
The BLVD Centers brand is based upon a central motif to patients: it is fun and hip to be sober and that being sober is attractive to the world around them. This central brand message is reflected in the boutique styling of the centers from the hip, urban décor and health-conscious meals to events such as group drumming, Buddhist meditation and restorative yoga.
This vibe extends toward each center’s staff who treat sobriety as an achievement and honor which should be regarded with respect as well as a bit of swagger.