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        Mental Health & Substance Abuse Services Industry Profile

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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).

        The global residential substance abuse and mental health facilities market is expected to grow from $73.73 billion in 2020 to $77.06 billion in 2021 at a compound annual growth rate (CAGR) of 4.5%, according to ReportLinker. North America is the largest region in terms of facilities market followed by Western Europe while Africa is the smallest.

        The US mental health and substance abuse services industry includes about 20,000 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 ...

         
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