Patient acquisition is getting more expensive, more competitive, and less predictable for behavioral health programs. To work through what programs should do about it, Pathroot Health convened three people who see the problem from different seats: Luke Catton of Advanced Recovery Services, Mike Webb of B&W Behavioral Health, and Alex Czeczko of Carrum Health.

The conversation, New Pathways to Patients, centered on one question: should treatment programs keep spending more to compete for the same patients, or build new pathways that produce stronger referrals and greater long-term value? Four takeaways stood out.

1. Paid media is delivering diminishing returns

Paid advertising still matters. Its economics are getting harder to justify. One funnel analysis shared during the panel traced 100 paid leads through the process: roughly 16 completed verifications of benefits, seven viable prospects, and two or three admissions. At that conversion rate, the paid-media cost per admission came to more than $16,000.

Nobody on the panel argued for abandoning paid channels. The point was about dependence. Relying heavily on increasingly crowded channels concentrates risk, and cost per lead is the wrong yardstick. The real return has to be measured across the full patient journey, from inquiry and admission through retention and completion.

The goal is not simply to generate more leads. It is to become more referable.

2. Trusted referrals create greater long-term value

Compared with paid media, referrals are generally less expensive, begin with more trust, convert at higher rates, and can produce repeat admissions over time. A patient or family arriving by referral has often already received guidance from a clinician, attorney, school, recovery professional, or community leader, and that relationship improves fit, conversion, and confidence in the decision.

But referrals only compound when the provider earns them. The panel’s checklist was practical:

• Clearly communicate what makes the program different

• Respond quickly

• Make the admissions process easy

• Communicate consistently with the referring party

• Deliver an experience worth recommending again

3. Employers are emerging as a pathway into treatment

Substance use disorders impose real costs on employers through healthcare spending, absenteeism, lost productivity, and workforce disruption. Data presented during the panel put numbers on it: roughly $15,640 in annual attributable medical costs for an employee with an SUD diagnosis; employees in recovery missing an average of 13.7 fewer workdays per year than those with an untreated disorder; and 69% of large employers ranking access to mental health and SUD services among their top three priorities.

As employers look for better ways to connect employees and families with effective treatment, new referral models are forming around them. Carrum Health’s employer-sponsored Centers of Excellence network is one of the clearest examples. For participating providers, it is a distinctly different pathway to commercially insured patients: eligible members reach the program without many of the barriers of traditional payer relationships, including denials, preauthorization burdens, and patient cost-sharing, and Carrum manages travel and program administration.

Because it is a Centers of Excellence network, providers have to qualify. The panel outlined what that means in practice: measurable quality, appropriate levels of care, geographic accessibility, a strong member experience, predictable contracting, and a willingness to report outcomes. (We go deeper on what these partners ask providers to prove in a companion article, and you can compare a Carrum referral to a traditional insurance admission with our calculator.)

4. Retention has to be part of the acquisition strategy

Acquisition does not end at admission. When patients leave early, programs lose census and revenue, add pressure on staff, and have to spend again to replace the admission. At the panel’s estimated acquisition cost of $16,608 per patient, replacing ten early departures could require more than $166,000 in additional acquisition spend.

That makes patient engagement, family alignment, early-exit reduction, and continuity of care growth levers, not just clinical concerns. Programs that keep patients engaged and can demonstrate outcomes are also the ones that keep the confidence of families, referral partners, employers, and networks — which feeds every other pathway on this list. Run your own early-exit numbers with the AMA Impact Calculator, or read the three financial risks that erode every admission.

The takeaway

The next pathway to patients is unlikely to be one new marketing channel. It comes from a more balanced strategy: reduce dependence on increasingly expensive paid acquisition, build relationships with trusted referral sources, prepare for employer-sponsored networks such as Carrum, and protect every admission by improving engagement and retention.

The programs best positioned for growth will not simply market harder. They will become more referable, more network-ready, and better able to deliver after the admission.

Watch the full New Pathways to Patients discussion to hear the panel’s reasoning and find the next step that fits your organization.

Frequently Asked Questions

What does paid media cost per admission for addiction treatment programs?

One funnel analysis shared during Pathroot Health’s New Pathways to Patients panel traced 100 paid leads to roughly 16 completed verifications of benefits, seven viable prospects, and two or three admissions, for an estimated paid-media cost of more than $16,000 per admission. Actual figures vary by market and program, but the analysis illustrates why cost per lead understates the true cost of acquisition.

Why are referrals more valuable than paid leads for treatment programs?

Referrals are generally less expensive, begin with greater trust, convert at higher rates, and can produce repeat admissions. A referred patient or family has often already received guidance from a clinician, attorney, school, or recovery professional, which improves fit and confidence in the treatment decision.

How can a treatment program become more referable?

The panel’s checklist: clearly communicate what makes the program different, respond quickly, make the admissions process easy, communicate consistently with referring parties, and deliver an experience worth recommending again.

Why are employers becoming a referral pathway for addiction treatment?

Substance use disorders cost employers through healthcare spending, absenteeism, and lost productivity. Data shared during the panel cited roughly $15,640 in annual attributable medical costs per employee with an SUD diagnosis, 13.7 fewer missed workdays per year for employees in recovery, and 69% of large employers ranking access to mental health and SUD services among their top three priorities. Employer-sponsored networks such as Carrum Health’s Centers of Excellence are one response.

What do providers need to qualify for a Centers of Excellence network like Carrum Health?

Participating providers must be able to demonstrate measurable quality, appropriate levels of care, geographic accessibility, a strong member experience, predictable contracting, and a willingness to report outcomes.

Why is retention part of a patient acquisition strategy?

When patients leave early, the program loses census and revenue and must spend again to replace the admission. At an estimated acquisition cost of $16,608 per patient, replacing ten early departures could require more than $166,000 in additional acquisition spending, which makes engagement, family alignment, and continuity of care growth levers.

Where can I watch the New Pathways to Patients panel?

The full replay of Pathroot Health’s New Pathways to Patients panel, featuring Luke Catton of Advanced Recovery Services, Mike Webb of B&W Behavioral Health, and Alex Czeczko of Carrum Health, is available on the Pathroot Health website.

Sources

• Pathroot Health (2026). New Pathways to Patients: expert panel with Luke Catton (Advanced Recovery Services), Mike Webb (B&W Behavioral Health), and Alex Czeczko (Carrum Health)

• Business Group on Health, Employer Health Care Strategy Survey (employer priorities for mental health and SUD access)

• National Safety Council / NORC at the University of Chicago, Substance Use Cost Calculator for Employers (attributable medical costs and absenteeism)

• Carrum Health, Centers of Excellence program overview

• SAMHSA, Treatment Improvement Protocol (TIP) 39: Substance Use Disorder Treatment and Family Therapy (updated 2020)

• Agency for Healthcare Research and Quality, Patient Safety Network: Discharge Against Medical Advice