While outpatient services are the hot topic in substance use disorder (SUD) care, some providers are continuing to see residential care drive their bottom line.

Addiction provider Hazelden Betty Ford Foundation (HBFF) is seeing an uptick in net patient service revenues driven mainly by higher utilization of detox services and residential treatment. That’s according to the provider’s second quarter financial disclosure.

Overall, 65% of its net patient service revenue came from the residential level of care. HBFF reported that net patient services revenue exceeded the budget by $1.6 million. This meant the revenue exceeded last year’s same period by $7.3 million or 8.6%.

The foundation reported a total operating revenue of $119.2 million in the first six months of 2024, up 11.3% from last year.

Founded in 2014 with the merger of the Hazelden Foundation and the Betty Ford Center, Hazelden Betty Ford Foundation is one of the country’s largest nonprofit addiction treatment providers. Headquartered in Center City, Minnesota, the addiction and mental health provider has 17 treatment centers. Its programs are in-network with the bulk of larger payers, but are not covered under Medicare or Medicaid.

The organization’s latest financial release reported that recovery services made up 77.5% of its total operating revenue in the first six months of 2024. The foundation also has a publishing division, and a graduate school.

Combined offerings have been growing in popularity in recent years.

“HBFF has seen significant growth in its co-occurring mental health and addiction service line offerings and continues to expand mental health and family services offerings to improve patient outcomes and reduce the likeliness of a return to use,” the report said.

While the bulk of HBFF’s revenue still comes from residential care, the company has made it clear that it is diversifying.

“We started out for many years just doing residential care. And as we move more [to working with] payers, we saw an opportunity to expand into partial [hospitalization], which led to an opportunity to grow into IOP,” Robert Poznanovich, chief business growth officer at Hazelden Betty Ford Foundation, said at Behavioral Health Business’ Autism & Addiction Treatment Forum in July. “Then we look at the gaps in the continuum; we can add recovery management, services, coaching, peer and other forms of the continuum of care, which is really driving a lot of revenue. So now 20 to 30% of our revenue comes from non-traditional services.”