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New Jersey Inpatient Expansion by GenPsych Competitive Threat to Florida | Print |  E-mail
Addiction Treatment Industry Newswire

08/05/2012 -ATIN- Fast growing New Jersey addiction treatment, drug rehab and alcohol rehab provider GenPsych is planning to open three new centers, with as many as 100 beds, in a huge expansion of private inpatient services for the state, which has seen an erosion of local residential services post managed care as South Florida providers have aggressively tapped a rich New Jersey vein of out-of-network benefits. "We expect to have our planned entrance into the New Jersey inpatient market complete and fully functioning at the beginning of next year," says GenPsych founder Dr. Henry Odunlami, an entrepreneurially inclined psychiatrist, adding that planned locations are in Lebanon Township, Chester, NJ and Hillsborough, NJ. The new GenPsych inpatient operation will be a significant competitive threat to players like Behavioral Health of the Palm Beaches, BHOPB, who have focused on New Jersey's well insured populace - the heavily unionized Northeast has by far the best insurance coverages for addiction in the nation - as a major source of clientele. BHOPB President Jack Coscia got his start in the business through union EAP work and is one of the most experienced and prolific plyers of union contacts in the addiction treatment business. Reliable sources tell Treatment Magazine that Coscia, before he teamed with the late Dr. Don Mullaney to found BHOPB, may have gotten into some legal trouble through the overly aggressive use of union contacts. Coscia did not return a text message seeking comment, nor did his public relations representative return a phone call. As complaints by New Jersey clients about the quality of care at BHOPB have arisen in recent years, GenPsych may be opening its inpatient operation at an opportune moment by providing an alternative for consumers. Furthermore, GenPsych will be seeking an in-network relationship with a broad array of carriers, which will be attractive to consumers as it will mean SIGNIFICANTLY less out-of-pocket expenses for clients than at South Florida centers, which often tap out-of -network benefits in Northeast states like New Jersey. "We expect the average inpatient stay to be just two weeks or so as our continuum of care model envisions using our outpatient operations to deliver step down levels of care for our clients," says Odunlami.

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written by Mark Anderson, August 08, 2012
I guess this BHOP isn't going to advertising with you anymore! Must be nice not to need advertisers in this economy!

I agree with Jim's comment that research has shown that inpatient treatment has been more successful than just treating a patient purely on a outpatient treatment. The American insurance companies are the ones moving everyone to the outpatient model. They are following the same model they use over in England where the insurance companies will only pay for outpatient treatment. There is a huge backlash over there because that treatment model has failed miserably there.

But I guess its like a lot of other things right now in our country that do not make any sense. We keep moving further down the same path and following many of the same type of things that aren't working in many of the European countries economies.
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response to Jim Bevill comment posted above
written by TJ, August 06, 2012
thanks for ur comment Jim ...GenPsych currently spends nothing with Treatment Magazine, though we hope they will as we have among the most effective and tested marketing products in the addiction treatment industry. BHOPB, on the other hand, has been a big client of ours since our very first issue over eight years ago. So much for our "slant"... Ted Jackson, Editor and Publisher, Treatment Magazine
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written by Jim Bevell, August 06, 2012
Very interesting article. However with the noticeably positive slant towards Gen Psych one can't help but ask the question how many advertising dollars have they spent with Treatment Magazine. That aside however I am wondering how much evidence and research Gen Psych is basing this model on. It seems more like pandering to the insurance companies than any real effective treatment. For years all of the research clearly indicates the longer a person stays in treatment the better the outcome. This really sounds like Gen Psych is going to try the same old thing that has failed miserably for the past twenty years and expect a different result. Isn't that how Einstein defined Insanity?
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