Addiction Treatment Technology Entrepreneurs See $42 Billion Market Ripe with Opportunity

Drug overdose deaths continue to reach new highs, which has subsequently given rise to a $42 billion industry to treat substance use disorders (SUDs).

Among those offering services are a number of virtual SUD treatment providers, who have emerged as debate continues within the field as to the best options overall for treating users. 

“[The addiction treatment field] has long been torn by opposing ideologies and approaches: medication-assisted treatment versus cold-turkey detox; residential treatment versus outpatient; abstinence versus harm reduction; peer support versus professional help,” Kaiser Health News (KHN) recently reported. “And most people who report struggling with substance use never manage to access treatment at all.”

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Various digital treatment providers have been offering a variety of care options – which include medication-assisted treatment, peer support and coaching – all while touting promising results for users.

Some addiction treatment experts worry that the services, while potentially being helpful, may nonetheless be of no consequence to users struggling with technological access.

“The people who are really struggling, who really need access to substance use treatment, don’t have 5G and a smartphone,” Dr. Aimee Moulin, a professor and behavioral health director for the emergency medicine department at the University of California-Davis Health, told KHN. “I just worry that as we start to rely on these tech-heavy therapy options, we’re just creating a structure where we really leave behind the people who actually need the most help.”

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In addition to providers like Quit Genius, Workit Health and Ophelia Health – who combined have raised around $284 million, according to figures compiled from fundraising tracking site Crunchbase – back end service companies have also popped to help startups scale operations.

David Sarabia is the founder of one such company, San Diego-based inRecovery, which also provides recovery support services. Currently, the company is piloting an aftercare program for patients of Pennsylvania-based Caron Treatment Centers.

Sarabia told KHN that his goal for the pilot is to scale it so that it can be offered inexpensively to county-run treatment centers. At the current moment, he acknowledged that it is a challenge given that it costs between $50,000 to $100,00 to license the software.

“Bottom line, for the treatment centers that don’t have consistent revenue, those on the lower end, they will probably not be able to afford something like this,” Sarabia told KHN.

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