Definition - What does Treatment Facility mean?
A treatment facility is a healthcare center that provides treatment for substance abuse or mental illnesses.
Insurance companies often provide a certain amount of coverage for stays in or treatments from these kinds of facilities. The amount of coverage provided is not necessarily the same as the amount for treatment in other healthcare facilities, such as hospitals.
Insuranceopedia explains Treatment Facility
It can be expensive for insurance companies to provide full coverage for care delivered in treatment facilities. The main reason for this is that the programs offered at these facilities can last for days, weeks, or months.
Although the costs can be high, insurers do recognize that receiving care in a treatment facility can save on medical costs in the future. By covering this treatment, they can save themselves from having to pay more in claims over the long run.