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

Appreciation has risen for the economic, personal and societal benefits of treatment for mental illness or substance abuse. Combined with a treatment shift from inpatient to outpatient settings and a growing opioid epidemic, demand for the Mental Health and Substance Abuse Clinics industry has grown. The federal expansion of Medicaid as a part of the Patient Protection and Affordable Care Act (PPACA) during the period has contributed significantly to the increase in the number of people with coverage. In addition, rising disposable income has increased affordability for the small portion of individuals who pay for services out of pocket...purchase to read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
5.1%
Forecast Growth 18-23
Profit
Employment
253,395
Businesses
11,728
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Healthcare reform has expanded eligibility and coverage for mental health services, benefiting the industry
  • Coverage expansions have improved mental health access for Medicaid beneficiaries
  • As the unemployment rate remains low, more individuals will likely gain coverage
  • Industry Report - Starting a New Business Chapter

    This industry has moderate barriers to entry. The significant presence of nonprofit providers reduces the opportunities available to for-profit operators, but the industry is highly fragmented, with no single provider dominating the market. Nonetheless, operators must develop a critical mass of patients to be viable, and it may be difficult for new entrants to attract trained staff, establish referral relationships and develop awareness of the clinic in the community. Overall capital intensity for the industry is low. However, the initial capital investments to secure a facility, any necessary medical equipment and materials needed presents a substantial barrier. Additionally, clinics must be accredited and licensed by government regulatory bodies. Som...purchase to read more.

    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 adults aged 20 to 64 in the Mental Health & Substance Abuse Clinics industry impact industry performance..

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    What's in this report

    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
  • Outpatient treatment for co-occurring disorders
  • Outpatient treatment for substance-use disorders only
  • Outpatient treatment services for mental disorders only
  • 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

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

  • Current Performance
  • Increasing accessibility
  • Federal funding and the opioid epidemic
  • Continued shift to outpatient care
  • Chart: Revenue Growth

  • Industry Outlook
  • Individual mandate tax repeal
  • Expansion of Medicare and Medicaid
  • Shortage in psychiatric professionals
  • 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

  • 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
  • Outpatient treatment services for mental disorders only
  • Outpatient treatment for substance-use disorders only
  • Outpatient treatment for co-occurring disorders
  • Chart: Mental Health & Substance Abuse Clinics Industry Products and Services Segmentation

  • Demand Determinants
  • Current factors
  • Potential factors

  • Major Markets
  • Medicaid reimbursements
  • Reimbursements from private health insurance plans
  • Funding from other government programs
  • All other sources of revenue
  • Out-of-pocket payments from patients and families
  • Contributions, gifts and grants received
  • Medicare reimbursements
  • Chart: Major Market Segmentation for the Mental Health & Substance Abuse Clinics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    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
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mental Health & Substance Abuse Clinics Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Mental Health & Substance Abuse Clinics Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of people with private health insurance (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

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    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.
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    • 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

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