A national “secret shopper” study found private equity-owned residential addiction treatment facilities charge significantly more per day than other for-profit centers, while offering fewer key services in some cases, according to a cross sectional study published in JAMA Health Forum.
Researchers from New Haven, Conn.-based Yale University, University of Chicago and Virginia Commonwealth University in Richmond analyzed 127 PE-owned and 214 non-PE for-profit facilities across 34 states using a secret shopper methodology. The study was conducted from June 2024 to April 2025.
Here are four things to know:
- Mean daily rates were 15.6% higher at private equity–owned facilities — $910.73 compared to $779.87 at other for-profit centers.
- Even after accounting for geographic factors, PE-owned facilities charge about $127.73 more per day on average.
- PE-owned facilities were less likely to offer detox services (74.8% versus 88.8%) and private rooms (12.1% versus 25.7%).
- PE-owned centers made more post-call contact attempts with prospective patients, averaging 0.68 follow-ups versus 0.18.
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