Mental Health & Substance Abuse NAICS 621420, 623220

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Industry Summary
The 13,100 mental health and substance abuse centers in the US provide treatment and care for patients with mental health disorders and substance abuse illnesses, also known as behavioral disorders. About 48% of outpatient service centers and 62% of residential treatment centers are non-profit organizations.
Dependence on Third Party Payers
Mental health and substance abuse centers rely primarily on insurance companies, managed care organizations, and government programs as their main sources of revenue.
Coverage Improving Via Parity Laws
Growing recognition of the cost of mental illness and lack of patient access to care has resulted in federal legislation to improve mental health and substance abuse coverage.
Recent Developments
May 15, 2025 - States Sue Trump Administration Over HHS Changes
- Nineteen states and the District of Columbia filed a lawsuit against the federal government to block the Trump administration’s restructuring of the US Department of Health and Human Services (HHS). The plaintiffs argue that the restructuring is an “unconstitutional and illegal dismantling of the department.” They contend that the government has violated hundreds of laws and bypassed congressional authority by enacting the plan, leaving HHS unable to execute many vital functions. The plaintiffs also said that the restructuring has significantly hindered mental health and substance use services, HIV/AIDS response efforts, maternal mortality monitoring and disability support, among other key services.
- All 50 states and the District of Columbia have seen fentanyl-related drug deaths decrease to levels not seen since 2020, according to an analysis of US overdose data conducted by researchers at the University of North Carolina at Chapel Hill. Demand for substance abuse treatment may decrease if the decrease in fentanyl-related drug deaths is due at least in part to a decrease in fentanyl use. "We are on track to return to levels of [fatal] overdose before fentanyl emerged," said Nabarun Dasgupta, lead researcher on the project which examined overdose records from the Centers for Disease Control and Prevention. Drug deaths in the US are down roughly a quarter, according to provisional Centers for Disease Control data. That includes fentanyl and other illicit drugs like cocaine and methamphetamine.
- The incidence of substance use disorders among seniors has climbed steeply, according to the Centers for Disease Control and Prevention (CDC). CDC data indicates that the rate of overdose deaths among seniors quadrupled from 2002 to 2021. Some older adults show long-term substance use, while others develop a harmful reliance later in life.
- Mental health and substance abuse industry employment and wages for nonsupervisory employees increased slightly during the first three months of 2025, according to the US Bureau of Labor Statistics (BLS). Mental health and substance abuse hospitals increased prices slightly during 2024, according to the BLS.
Industry Revenue
Mental Health & Substance Abuse

Industry Structure
Industry size & Structure
A typical mental health or substance abuse center employs 42 workers and generates $4.2 million in annual revenue.
- The mental health and substance abuse service industry consists of about 13,100 companies that operate 23,000 facilities, employ about 546,000 workers, and generate $55 billion annually.
- About 48% of outpatient service centers and 62% of residential treatment centers are non-profit organizations.
- Large organizations include CRC Health Group and the Hazelden Betty Ford Foundation.
Industry Forecast
Industry Forecast
Mental Health & Substance Abuse Industry Growth

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