GreeneStone Healthcare announced today that it has identified a property in Ontario that is well suited to serve as an in-patient addiction treatment expansion facility, and that the Company is in active discussions to secure the property. This property has the potential to add 60 beds to GreeneStone’s existing 36 bed capacity in Muskoka. Having been used for similar purposes previously, the property can be brought on stream relatively quickly. Approaching full capacity at its Muskoka location, GreeneStone is positioning to handle increasing demand for addiction treatment. “It takes a lot of time to be patient ready and until you know where you will be offering your services, it’s hard to move forward building the work force. It all starts with the location. We now know where we can add capacity and we are moving forward to secure these premises,” commented Shawn Leon, CEO of GreeneStone Healthcare Corp.
With a similar ramp-up as GreeneStone Muskoka experienced, this new expansion facility can raise GreeneStone’s total in-patient addiction treatment capacity to over 100 beds over the next year. This increased capacity allows GreeneStone to pursue larger groups that the Company has identified as providers of multiple patient referrals. “These referral sources need to know that you can provide the capacity and that you have the capabilities to provide the treatment required. We have shown that we have the capabilities and now we can demonstrate the capacity,” added Mr. Leon.
For every $5 spent on drug rehabilitation by the Canadian government, $95 is spent on incarceration of drug users (Health Officer’s Council of BC). At the same time, substance abuse costs the Canadian healthcare system an estimated $8 billion annually and the economy an estimated $34 billion (Canadian Centre on Substance Abuse). The majority of the economic cost of substance abuse – an estimated 85% – is due to lost productivity. As such, GreeneStone has focused on Boomers, executives, and professionals as its primary patient stream (with the 18-30 year old segment as the secondary stream).
With a dedicated Eating Disorder clinic facility secured, and the launch of the Outpatient and Aftercare clinic underway, GreeneStone is extending its vertical expertise in addiction treatment and related mental health issues. The Company is pursuing a strategy of deep vertical expertise in niche, underserviced mental health areas. As the Company expands its specialty facility network, existing capacity will be more efficiently utilized. For example, GreeneStone’s planned trauma specialty facility in Toronto will provide space for patients who would otherwise occupy detoxification beds at the Muskoka facility, thus effectively expanding the company’s available detox capacity, and revenue per bed potential. “We know that there is a greater demand for detox beds than what we have allowed to treat our full program patients,” commented Mr. Leon.
Let us hear your thoughts below:
