Mental Health & Substance Abuse
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 12,000 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.
Industry size & Structure
A typical mental health or substance abuse center employs 37-55 workers and generates $3-4 million in annual revenue.
- The mental health and substance abuse service industry consists of about 12,000 companies that operate 20,000 facilities, employ about 513,000 workers, and generate $50 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
Mental Health & Substance Abuse Industry Growth
Recent Developments
Mar 19, 2024 - Prices Increase Slightly
- Mental health and substance abuse hospitals increased prices slightly during 2023, according to the US Bureau of Labor Statistics (BLS). Industry employment and wages for nonsupervisory employees increased moderately during 2023, according to the BLS, driven by staffing shortages and high demand for service.
- The production of dopamine, often referred to as the “happiness hormone,” is not linked to a higher risk of drug susceptibility, according to researchers at the University of Geneva. Researchers discovered that impulsivity predicts cocaine consumption not through dopamine production capacity but possibly through the control of its release. The results may offer new keys to understanding vulnerability to drug abuse, which could lead to the development of more targeted interventions for people at risk. When a person consumes an addictive drug, his or her dopamine release surges, creating a “high” feeling. With repeated drug use, this dopamine release drops, potentially driving the person to increase drug consumption. This mechanism varies between individuals, with some showing a greater propensity to consume the drug while others don’t. The reasons for these differences are unknown.
- Over 16% people aged 12 and older had a substance use disorder in 2022, according to the 2023 National Survey on Drug Use and Health conducted by the US Department of Health and Human Services. The survey also found that nearly 25% of adults had a mental illness, including about 8% who experienced both mental illness and substance use disorder. About 20% of adolescents ages 12 to 17 had had a major depressive episode in the past year.
- Scientists at the National Institutes of Health have identified genes commonly inherited across addiction disorders, regardless of the substance being used. The scientists’ research method involves searching entire genomes for regions of genetic variation, called single-nucleotide polymorphisms (SNPs), that associate with the same disease, disorder, condition, or behavior among multiple people. The research team discovered various molecular patterns underlying addiction, including 19 independent SNPs significantly associated with general addiction risk and 47 SNPs for specific substance disorders among the European ancestry sample. The strongest gene signals consistent across the various disorders mapped to areas in the genome known to control regulation of dopamine signaling, suggesting that genetic variation in dopamine signaling regulation, rather than in dopamine signaling itself, is central to addiction risk.
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