The diagnosis: Reduced stigma toward mental illness will continue to bolster demand

Wider acceptance and prevalence of mental illness has supported demand for behavioral health treatment, bolstering revenue for the Psychiatric Hospitals industry. The industry is mainly supported by government-sponsored healthcare, which accounts for nearly two-thirds of mental healthcare spending in the United States, according to the US Department of Health and Human Services. As a result, the expansion of Medicare and Medicaid has had a significant effect on the industry. Over the five years to 2023, the sustained influx of patients resulting from expanded public and private healthcare coverage and prevalence of mental illness is projected to aid revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 13-18
2.7%
Forecast Growth 18-23
Profit
Employment
237,332
Businesses
695
Market Share of Companies

Industry Threats & Opportunities

  • Growing acceptance of mental illness will drive industry revenue growth
  • As the prevalence of mental illness increases, so does demand for industry services
  • The industry is expected to continue benefiting from reduced stigma surrounding mental illness
  • Industry Report - Industry Locations Chapter

    The location of psychiatric and substance abuse hospitals in the United States largely reflects the distribution of the population and the geographic size of the region. Other factors include the age distribution of the population, birth rates, the extent of substance abuse, household incomes, state government policies and the provision of substitute services, such as community care. The incidence of serious mental health and drug dependence varies by state and region. IBISWorld estimates that the Southeast, Mid-Atlantic and Great Lakes regions capture the highest share of industry establishments, accounting for 27.8%, 18.2% and 13.9% of total establishments, respectively.The number of employees per establishment also varies by region. The...purchase to read more.

    Additional Insights for the Psychiatric Hospitals Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Psychiatric Hospitals Industry are

  • Recommendation/accreditation from an authoritative source
  • Access to highly skilled workforce
  • Proximity to key markets
  • 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 Psychiatric Hospitals industry impact industry performance..

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    What's in this report

    What is the Psychiatric Hospitals Industry?

    This industry includes establishments licensed to provide diagnostic and medical treatment, as well as monitoring services for inpatients suffering from mental illness or substance abuse disorders. These establishments maintain inpatient beds and a staff of physicians. Facilities that emphasize counseling for mental health and substance abuse rather than medical treatment are not included in the industry (see IBISWorld report 62322).

    Industry Products
  • Patient care for mental disorders
  • Other patient care
  • Assisted living services
  • Acute long-term care services
  • Industry Activities
  • Inpatient medical treatment of mental illness
  • Inpatient medical treatment of substance abuse
  • Providing outpatient medical services
  • Providing clinical laboratory services
  • Providing electroencephalograph services
  • 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 people with private health insurance
  • Per capita disposable income
  • Demand from mental health and substance abuse clinics
  • National unemployment rate

  • Current Performance
  • Effects of legislation
  • Mental healthcare awareness
  • Sector-wide consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation and expansion
  • Rising costs
  • Table: Psychiatric Hospitals Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Psychiatric Hospitals Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Health & Welfare Funds
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Diagnostic & Medical Laboratories
  • Employment & Recruiting Agencies
  • Generic Pharmaceutical Manufacturing
  • Janitorial Services
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling
  • Primary Care Doctors
  • Specialist Doctors
  • Waste Collection Services

  • Products & Services
  • Patient care for mental disorders
  • Other
  • Other patient care
  • Assisted living services
  • Acute long-term care services
  • Chart: Psychiatric Hospitals Industry Products and Services Segmentation

  • Demand Determinants
  • Societal
  • Financial
  • Medical

  • Major Markets
  • Females aged 26 to 49
  • People aged 12 to 17
  • Males aged 26 to 49
  • Females aged 50 and older
  • Males aged 50 and older
  • Females aged 18 to 25
  • Males aged 18 to 25
  • People aged younger than 11
  • Chart: Major Market Segmentation for the Psychiatric Hospitals Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Psychiatric Hospitals

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Psychiatric Hospitals Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Psychiatric Hospitals 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 Psychiatric Hospitals 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
    Psychiatrist
  • A professional who has completed both medical school and training in psychiatry and is a specialist in diagnosing and treating mental illness.
  • Accreditation
  • A seal of excellence that signifies a healthcare program has demonstrated quality, value and optimal service outcomes.
  • Behavioral Healthcare
  • An encompassing term including assessment and treatment of mental or psychoactive substance abuse disorders.
  • Community-Based Treatment
  • A method of treatment that focuses on the interpersonal services offered to an individual through a system of community support.
  • Freestanding
  • An independent or autonomous facility that is not associated with another hospital or organization.
  • Mental Health Parity
  • An equivalence, or parity, in insurance coverage of mental and physical illnesses.
  • Payer
  • The public or private organization that is responsible for payment of healthcare expenses.
  • What Our Customers Say

    Why buy this report?

    The Psychiatric Hospitals industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Psychiatric Hospitals:
    • 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 Psychiatric Hospitals 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 Psychiatric Hospitals, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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