Overview

Acceptance and hope: Rising incomes and expanded coverage will boost access to industry services

IBISWorld’s industry research report on Mental Health & Substance Abuse Clinics provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$21bn
Annual Growth
12-17
6.0%
Annual Growth
17-22
Profit
Employment
255,296
Business
15,651

Industry Threats & Opportunities

  • Healthcare reform will expand eligibility and coverage for mental health services, benefiting the industry
  • Coverage expansions have improved mental health access for Medicare beneficiaries
  • The AHCA was passed, reducing government outlays on healthcare
  • Industry Analysis & Industry Trends

    Combined with a treatment shift from inpatient to outpatient settings, an increasing understanding of mental illness has fostered growth for the Mental Health and Substance Abuse Clinics industry. As a result, industry revenue is expected to rise over the five years to 2017. The industry has also benefited from increased coverage for outpatient mental health services under Medicare, and other plans. Over the five years to 2022, the expanding economy is expected to sustain industry revenue growth. Healthcare reform will also expand eligibility and coverage for mental health services. Consequently, industry revenue is expected to increase over the five years to 2022.

    Industry Report - Industry Investment Chapter

    The Mental Health and Substance Abuse Clinics industry has a low level of capital intensity. For every dollar spent on labor, only about $0.05 is spent on capital. This figure has remained virtually unchanged over the five years to 2017. Labor costs, meanwhile, are expected to represent 47.0% of revenue in 2017. A high staff-to-patient ratio is required in outpatient mental health and substance abuse facilities. Some patients require intense and direct care. Employment of substance abuse and behavioral disorder counselors is expected to grow faster than the average for all occupations in the years ahead, according to the US Bureau of Labor Statistics. As society becomes more knowledgeable about addiction, more people are seeking treatment. Fur

    Additional Insights for the Mental Health & Substance Abuse Clinics Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mental Health & Substance Abuse Clinics Industry are

  • Must comply with government regulations
  • Proximity to key markets
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Number of people with private health insurance in the Mental Health & Substance Abuse Clinics industry impact industry performance..

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    Industry Products

    What is the Mental Health & Substance Abuse Clinics Industry?

    This industry includes establishments with medical staff who primarily provide outpatient services related to the diagnosis and treatment of substance abuse and other mental health disorders. The industry excludes facilities or hospitals that treat inpatients. Furthermore, the industry does not include establishments that primarily use medical treatment to care for mental health patients.

    Industry Products
    Mental health community centers
    Mental health clinics
    Substance abuse clinics (drug-free)
    Substance abuse clinics (methadone)
    Industry Activities
    Outpatient alcoholism treatment centers and clinics (except hospitals)
    Outpatient detoxification centers and clinics (except hospitals)
    Outpatient drug addiction treatment centers and clinics (except hospitals)
    Outpatient mental health centers and clinics (except hospitals)
    Outpatient psychiatric centers and clinics (except hospitals)
    Counseling staff and information regarding mental health and substance abuse issues
    Referring patients to more extensive treatment programs, if necessary

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of people with private health insurance
  • Number of adults aged 20 to 64
  • Per capita disposable income
  • Federal funding for social services

  • Current Performance
  • Federal funding and the opioid epidemic
  • Continued shift to outpatient care
  • Medicare coverage improves
  • Medicaid expansion raises hope
  • Healthcare reform lifts revenue
  • Chart: Revenue Growth

  • Industry Outlook
  • Shortage of skilled professionals
  • Healthcare reform
  • Rising uncertainty
  • Table: Mental Health & Substance Abuse Clinics Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Mental Health & Substance Abuse Clinics Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Primary Care Doctors
  • Specialist Doctors
  • Psychologists, Social Workers & Marriage Counselors
  • Psychiatric Hospitals
  • Mental Health & Substance Abuse Centers
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing

  • Products & Services
  • Substance abuse clinics (methadone)
  • Mental health clinics
  • Mental health community centers
  • Substance abuse clinics (drug-free)
  • Chart: Mental Health & Substance Abuse Clinics Industry Products and Services Segmentation

  • Demand Determinants
  • Current factors
  • Potential factors

  • Major Markets
  • Males aged 25 to 44
  • Females aged 25 to 44
  • Males aged 24 and younger
  • Males aged 45 and older
  • Females aged 24 and younger
  • Females aged 45 and older
  • Chart: Major Market Segmentation for the Mental Health & Substance Abuse Clinics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Mental Health & Substance Abuse Clinics

  • Basis of Competition
    External competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mental Health & Substance Abuse Clinics Industry

  • Industry Globalization
    Major Companies
    Universal Health Services, Inc.
  • Table: Universal Health Services, Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Mental Health & Substance Abuse Clinics Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Mental Health & Substance Abuse Clinics Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal Funding - Medicare and Medicaid (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Medicaid
  • A jointly funded cooperative venture between the federal and state governments to assist states in the provision of medical care to eligible needy people.
  • Medicare
  • A federally administered system of health insurance available to people aged 65 and over.
  • Mental Health Parity
  • Legislation signed into law in 1996 that requires that dollar limits on mental health benefits be no lower than any such limits for benefits offered by a group health plan or health insurance issuer.
  • Outpatient
  • A patient who receives treatment at a hospital or clinic but is not admitted overnight; a receiver of ambulatory care.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Mental Health & Substance Abuse Clinics:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Mental Health & Substance Abuse Clinics market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Mental Health & Substance Abuse Clinics, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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