Mental clarity: Healthcare reform will make more money available for industry services

Over the past five years, the Mental Health and Substance Abuse Centers industry has grown in response to increased awareness of mental health issues and substance abuse diseases. Additionally, and more importantly, industry growth has also been aided by the expansion of the Patient Protection and Affordable Care Act. Under such reform, more Americans have been able to obtain insurance due to the funding and enrollment expansion in Medicaid, while private healthcare enrollment has also risen. Combined with the destigmitization of mental health and substance abuse issues and rising per capita disposable income, industry revenue has grown. Over the five years to 2023, revenue is expected to continue growing, albeit at a slower rate...purchase to read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
4.0%
Forecast Growth 18-23
Profit
Employment
222,218
Businesses
8,214
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As the stigma around mental illness and substance abuse decreased, more people have sought treatment
  • A central goal of the PPACA was to significantly reduce the number of uninsured individuals
  • Growing acceptance of mental health and substance abuse conditions will bolster demand
  • Industry Report - Industry Products Chapter

    The Mental Health and Substance Abuse Centers industry focuses on providing long-term residential care. Industry establishments offer a variety of services for adults, youth and seniors struggling with mental health or substance abuse issues. For-profit facilities, which are subject to federal income tax, account for 30.0% of industry establishments. Meanwhile, nonprofit facilities that are exempt from federal income tax are estimated to account for 70.0% of industry establishments. While some industry operators provide outpatient services, the majority of revenue is derived from residential patient care, which is estimated to account for 90.6% of revenue. ...purchase to read more.

    Additional Insights for the Mental Health & Substance Abuse Centers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Mental Health & Substance Abuse Centers 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 Median age of population in the Mental Health & Substance Abuse Centers industry impact industry performance..

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    What's in this report

    What is the Mental Health & Substance Abuse Centers Industry?

    This industry includes establishments that primarily provide residential care and treatment for patients with mental illnesses, drug addiction and alcoholism. Industry services include lodging, supervision, evaluation and counseling. Medical services may be available, though these are incidental to counseling, mental rehabilitation and support services.

    Industry Products
  • Residential treatment programs for mental illnesses
  • Residential treatment programs for detoxification and substance abus
  • Outpatient rehabilitation services
  • All other services
  • Industry Activities
  • Providing residential alcoholism rehabilitation
  • Providing residential drug addiction rehabilitation
  • Providing treatment at convalescent homes or hospitals for psychiatric patients
  • Providing treatment at halfway houses for patients with mental health illnesses and substance abuse problems
  • Providing treatment at homes and hospitals for emotionally disturbed or psychiatric convalescent adults or children
  • 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
  • Median age of population
  • Number of people with private health insurance
  • Per capita disposable income

  • Current Performance
  • Federal funding and private healthcare coverage
  • Public awareness and treatment research
  • Chart: Revenue Growth

  • Industry Outlook
  • Coverage expansion drives growth
  • Public programs affect profitability
  • Table: Mental Health & Substance Abuse Centers Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Dry Cleaners
  • Employment & Recruiting Agencies
  • Generic Pharmaceutical Manufacturing
  • Grocery Wholesaling
  • Janitorial Services

  • Products & Services
  • Residential treatment programs for mental illnesses
  • Residential treatment programs for detoxification and substance abus
  • All other services
  • Outpatient rehabilitation services
  • Chart: Mental Health & Substance Abuse Centers Industry Products and Services Segmentation

  • Demand Determinants
  • Public and private insurance
  • Population with mental disorders or substance abuse
  • Public understanding

  • Major Markets
  • Medicaid
  • All other government funding
  • All other sources of revenue
  • Individuals with private insurance
  • Medicare
  • Out-of-pocket payers
  • Chart: Major Market Segmentation for the Mental Health & Substance Abuse Centers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Mental Health & Substance Abuse Centers

  • Basis of Competition
    Certificate-of-need (CON) programsGaining a competitive advantageExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Mental Health & Substance Abuse Centers 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 Centers 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 Centers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Federal funding for Medicare and Medicaid (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Acute Care
  • A branch of healthcare in which a patient is treated for a brief but severe episode of illness in a short period of time.
  • Halfway House
  • A rehabilitation center where people who left an institution, such as a hospital or prison, are helped to readjust to the outside world.
  • Managed Behavioral Health Organization (Mbho)
  • An organization that provides behavioral health services by implementing managed care techniques.
  • Managed Care
  • A system of financing and delivering healthcare to enrollees intended to reduce the cost of providing health benefits and improve the quality of care.
  • Outpatient Care
  • Treatment that does not require an overnight stay in a hospital or medical facility.
  • Serious Mental Illness (Smi)
  • A psychological or behavioral pattern that occurs in an individual. This pattern is thought to cause distress or disability that is not expected as part of normal development or culture.
  • Substance Abuse
  • Excessive use of a substance in a way it was not meant to be used or not as prescribed.
  • What Our Customers Say

    Why buy this report?

    The Mental Health & Substance Abuse Centers industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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
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    This report on Mental Health & Substance Abuse Centers:
    • 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 Centers 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 Centers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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