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    Mental Health & Substance Abuse Services Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 3/29/2021
    SIC Codes: 8093, 8361
    NAICS Codes: 621420, 623220
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Mental Health & Substance Abuse Services Industry Profile

    Companies in this industry provide outpatient and residential care and treatment for individuals with mental health and substance abuse illnesses. Major companies include Acadia Healthcare, Hazelden Betty Ford Foundation, and Spectrum Health Systems (all based in the US), along with the Centre for Addiction and Mental Health (Canada), and the Crossroads Centre (Antigua).

    Globally, resources for mental health services vary by region and by country. Spending on mental health services is between 5% and 18% of total health expenditures by countries that are part of Organisation for Economic Co-Operation and Development, a group of industrialized nations.

    The US mental health and substance abuse services industry includes about 12,100 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $38 billion.

    COMPETITIVE LANDSCAPE

    Demand for mental health and substance abuse services is driven by availability of new drugs and treatments and funding policies of health care insurance programs. The profitability of individual facilities depends on controlling costs and attracting physician referrals. Large companies have advantages in group purchasing and in marketing to physicians and managed health care companies. Small facilities compete effectively by providing superior patient service, integrating treatment with follow-up procedures, and specializing by treatment or demographic group.

    The US industry is highly fragmented: the top 50 outpatient companies account for less than 20% of segment revenue; the top 50 residential companies account for about 25% of segment revenue.

     
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