Jay Tobey is an entrepreneur and founder of Northstar Recovery and Wellness who combines passion, philanthropy, and strategy to tackle one of the most pressing challenges of our time—creating a seamless continuum of care in the fragmented behavioral health industry. We spoke about his entrepreneurial journey, the cracks in the mental health and substance abuse system, and his innovative investment model blending real estate with operational support to drive long-term recovery outcomes.

One of the most striking statistics Jay shared was that "one in six people have a substance abuse disorder and nearly 25% of adults have struggled with a mental illness at some point." Yet, only a fraction of those in need receive treatment, highlighting the urgency of rethinking current systems.

Jay discusses the critical gaps he identified, such as the lack of consistent care and the challenge of patients falling through the cracks when transitioning between facilities. His solution? Building a "continuum of care for inpatient, supportive housing, sober living, and long-term outpatient" to ensure sustainable recovery over years, not just weeks.

In addition to tackling systemic issues, Jay shares how his "personal board of directors"—trusted mentors who are ten steps ahead—has guided his strategic decisions, from structuring share ownership to maximizing tax benefits during exits.

Key Takeaways:

1. Long-term Recovery vs. Quick Fixes: Jay emphasizes the need to shift from 90-day programs dictated by insurance to multi-year solutions: "Each year someone is clean and in recovery, statistically their chances of staying clean skyrocket."
2. Fragmentation in Behavioral Health: The top companies hold only 1% of the market share, leading to a highly fragmented system that requires tailored approaches based on geography and population.
3. Real Estate as a Backbone: Jay’s investment model blends private equity with real estate to scale facilities quickly while ensuring investor security.
4. Continuous Improvement Through Data: He challenges operators to prove outcomes: "Are you tracking your data? Are you proving that people are having long-term success with you?"

This episode offers a mix of entrepreneurial insights, bold investment strategies, and a heartfelt commitment to helping those in need. Whether you’re in healthcare, real estate, or looking to make an impact through business, Jay’s approach will inspire and challenge you.