--- title: Private Equity-Run SUD Facilities Are Expensive, but Not Expansive description: Residential substance use treatment facilities owned by private equity firms are more expensive and may offer fewer services compared with other for-profit facilities. image: https://alert.psychnews.org/hubfs/Imported_Blog_Media/private_equity_iStock-2234354190.jpg --- 4/6/26 2:25 PM # Private Equity-Run SUD Facilities Are Expensive, but Not Expansive ![Picture of Psychiatric News Alert](https://alert.psychnews.org/hs-fs/hubfs/Psych%20News%20Email%20Banners/PN-Blue-Box_rgb.png?width=50&name=PN-Blue-Box_rgb.png) [ Psychiatric News Alert ](https://alert.psychnews.org/author/psychiatric-news-alert) Share: [facebook-f icon ](http://www.facebook.com/share.php?u=https://alert.psychnews.org/private-equity-run-sud-facilities-are-expensive-but-not-expansive) [linkedin-in icon ](http://www.linkedin.com/shareArticle?mini=true&url=https://alert.psychnews.org/private-equity-run-sud-facilities-are-expensive-but-not-expansive) [Twitter icon ](https://twitter.com/intent/tweet?url=https://alert.psychnews.org/private-equity-run-sud-facilities-are-expensive-but-not-expansive) [pinterest-p icon ](http://pinterest.com/pin/create/link/?url=https://alert.psychnews.org/private-equity-run-sud-facilities-are-expensive-but-not-expansive) [envelope icon ](mailto:?body=https://alert.psychnews.org/private-equity-run-sud-facilities-are-expensive-but-not-expansive) ![private_equity_iStock-2234354190](https://alert.psychnews.org/hs-fs/hubfs/Imported_Blog_Media/private_equity_iStock-2234354190.jpg?width=220&height=147&name=private_equity_iStock-2234354190.jpg)Residential substance use treatment facilities owned by private equity firms are more expensive and may offer fewer services compared with other for-profit facilities, according to a [study](https://jamanetwork.com/journals/jama-health-forum/fullarticle/2847118) in *JAMA Health Forum*.   **Why It’s Relevant** Private equity firms have increasingly targeted behavioral health facilities, including those treating substance use disorders (SUDs). However, in other health care settings, such as hospitals, private equity acquisitions have been linked to [lower quality of care](https://jamanetwork.com/journals/jama/fullarticle/2813379). Although some private equity strategies may enhance efficiency, others may make access to care more difficult or change established care practices, which in turn may have negative effects on highly vulnerable patients.   **By the Numbers** - Using a secret-shopper approach, researchers called 341 residential SUD treatment facilities and compared the prices and services of those acquired by private equity firms with those run by other for-profit entities. - Mean **daily rates were 15.6% ($127) higher at private equity facilities** than at other for-profit facilities. - Facilities acquired by private equity firms were** less likely to offer detoxification services** than other for-profit facilities (74.8% versus 88.8%). They were also **less likely to offer private rooms** (12.1% versus 25.7%). **The Other Side** The researchers didn’t capture certain important aspects of patient care, such as medication offerings or first-person patient experiences. In addition, the study didn’t assess nonprofit, outpatient-only, or inpatient facilities, which limits generalizability across settings.   **Takeaway Message** “As [private equity] continues to expand its footprint in behavioral health, understanding these dynamics and their impacts will be important for addressing an ongoing national substance use crisis,” the researchers wrote. “Further work using longitudinal designs and patient outcomes data is needed to assess the mechanisms underlying these differences and their implications for affordability and quality of care.”   **Related Information** “[Private Equity’s Inroads Into Mental Health Bring Concern](https://psychiatryonline.org/doi/10.1176/appi.pn.2025.03.3.38)”   **Source** John L. Havlik, et al. Private equity-acquired residential treatment facilities vs other for-profit facilities. *JAMA Health Forum*. 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