Mental Health Practitioners
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 29,300 mental health practitioners in the US diagnose and treat mental, emotional, and behavioral disorders and problems due to mental illness, alcohol and substance abuse, physical and emotional trauma, or stress. Practitioners include psychologists, counselors, therapists, social workers, and nurses. Practitioners may operate private or group practices or work within third-party facilities, such as hospitals, medical centers, substance abuse treatment centers, hospitals, and colleges.
Dependence on Third-Party Payers
Mental health practitioners are highly dependent on government programs and third-party insurers to pay for services.
Battling The Stigma
The stigma associated with mental health problems often discourages individuals from seeking help and can delay treatment.
Industry size & Structure
The average mental health practitioner operates out of a single location, employs about 4-5 workers, and generates $435,000 annually.
- The mental health practitioner industry consists of about 29,300 establishments that employ about 166,400 workers and generate $16 billion annually.
- The industry is highly fragmented; the top 50 companies account for 11% of industry revenue.
- The industry does not include psychiatrists, psychoanalysts, and psychotherapists having the degree of MD (Doctor of Medicine) or DO (Doctor of Osteopathy).
Industry Forecast
Mental Health Practitioners Industry Growth
Recent Developments
Apr 3, 2024 - Strong Industry Growth Expected
- US mental health industry sales are forecast to grow at a 6.17% compounded annual rate from 2022 to 2027, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Industry employment increased significantly during 2023 and wages for nonsupervisory employees increased moderately during the period, according to the US Bureau of Labor Statistics.
- Mental health urgent care sites that treat the increasing number of those needing mental health care are proliferating, according to The Wall Street Journal. The sites help ease a therapist shortage that has caused many people to wait months for appointments or go to the nearest emergency room. A letter published in the journal Psychiatric Services in 2021 identified 77 such clinics across the US. The sites can provide therapy and drugs or refer patients to a higher level of care if needed, said Katherine Du, a University of Pittsburgh School of Medicine student who was lead author on the letter. Some sites are run by hospitals, while others were established by private equity firms. Many are in wealthy areas, but most accept Medicaid.
- Almost 70% of employees surveyed for Calm's 2024 Voice of the Workplace Report said that their mental health has stayed the same or worsened over the past year. About half of workers are concerned about rapidly developing technologies in the workplace. One-third believe that artificial intelligence (AI) tools are contributing negatively to employee well-being. The survey also revealed the top stressors for employees. Number one is the cost of living or inflation, and number two is financial instability.
- A California county has become the first in America to recognize loneliness as a public health emergency. The San Mateo County Board of Supervisors passed a resolution that declared loneliness a public health crisis and pledged to explore measures that promote social connection in the community. Loneliness is a trend that US Surgeon General Dr. Vivek Murthy said is being seen nationwide. "This is a problem that has been building for decades in our country. COVID certainly worsened it and poured fuel on the fire. But that fire was burning before," Murthy said. The resolution doesn’t directly set aside funds for programs to reduce loneliness. It is intended to signal the county's commitment to addressing the issue and validates residents' experiences, said David Canepa, the Board of Supervisors’ vice president. Canepa added that the measure was partly inspired by efforts in the UK and Japan, which have each appointed national ministers to address loneliness.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.