Psychiatric Practices NAICS 621112

Jul 9, 2025 - One Big Beautiful Bill Includes Significant Medicaid Cuts

• • President Trump has signed into law the $3.4 trillion One Big Beautiful Bill that is estimated by Healio to include $930 billion in Medicaid cuts over 10 years. Many psychiatric practices are dependent on third-party payers, such as private insurance, government programs (Medicare, Medicaid), and managed care organizations (HMOs, PPOs), for a portion of revenue, although the percentage varies by practice. Nearly 12 million more people may be uninsured by 2034, with many losing coverage because of the Medicaid provisions in the bill, according to a US Congressional Budget Office analysis. For the first time in the Medicaid program’s nearly 60-year history, certain able-bodied adults aged 19 years to 64 years will be required to work, participate in job training, volunteer, or enroll in school at least 80 hours a month to maintain their Medicaid benefits. This will also be required for parents of children aged 14 years and older.
• More people will delay treatment for mental health problems now that the federal government has cut Medicaid funding, according to Spencer Hospital (IA) CEO Brenda Tiefenthaler. The US Congress is considering plans to cut Medicaid to help pay for tax cuts, according to health policy organization KFF. Medicaid recipients are particularly likely to need mental health care. More than a third of nonelderly Medicaid enrollees have some sort of mental illness, according to KFF. Medicaid covers health care for about 72 million Americans with low incomes or disabilities, according to National Public Radio.

• Private equity firms are buying behavioral health and substance use disorder services nationwide, according to a study published in the journal JAMA Psychiatry. Researchers found that 642 mental health clinics and 1,152 clinics treating substance use disorders had undergone private equity acquisition between January 1, 2012, and July 31, 2023, constituting 6.2% of all mental health facilities and 7.1% of addiction treatment facilities nationwide. Private-equity-owned practices accounted for roughly a quarter of all facilities providing mental health treatment in Colorado, Texas, and North Carolina.
• Psychiatric practice industry employment and average wages for nonsupervisory employees increased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics. Psychiatric practice sales are forecast to grow at a 5.46% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.