Maximizing Patient Lifetime Value in Substance Use Disorder Treatment

Maximizing Patient Lifetime Value in Substance Use Disorder Treatment

Financial Impact.

  • $2,325 – $21,404: Revenue providers generate per retained patient per treatment episode
  • $4 – $5 ROI: Return payers achieve for every $1 spent on continuous SUD treatment
  • $35.3 billion: Annual cost of untreated/poorly managed SUD across patient populations
  • $15,640: Average additional annual medical costs per untreated or poorly managed SUD patient.

The numbers tell a compelling story: Retaining a patient in SUD treatment generates between $2,325 and $21,404 per treatment episode for providers. For payers, continuous care delivers a $4 to $5 return for every $1 spent on SUD treatment, returns that compound with each year a patient remains engaged.

Yet 30% of patients drop out of treatment prematurely, contributing to a cycle where untreated or poorly managed SUD generates $15,640 more in annual medical costs per patient, costs that accumulate to $35.3 billion annually across populations with alcohol and opioid-related disorders.

Customer Lifetime Value (LTV), a principle that revolutionized business in the 1980s and 90s by proving that retention costs far less than acquisition, is now transforming how healthcare approaches chronic disease management. In SUD treatment, applying LTV principles isn’t just good business; it’s essential to sustainable care.

This paper examines how the proven framework of lifetime value transforms SUD treatment outcomes and economics for all stakeholders and identifies the integrated digital tools that make sustained engagement operationally achievable.

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