Mental Health & Substance Abuse Services

First Research, Inc.
October 6, 2014
10 Pages - SKU: FRRS5345588
Countries covered: United States

Mental Health & Substance Abuse Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide outpatient and residential care and treatment for individuals with mental health and substance abuse illnesses. Major companies include CRC Health and The Betty Ford Center (both based in the US), the Centre for Addiction and Mental Health (Canada), and the Crossroads Centre (Antigua).

Globally, resources for mental health services vary by region and by country. Spending on mental health services is between 3 percent and 16 percent of total health expenditures by countries that are part of Organisation for Economic Co-Development (OECD). Wealthy, industrialized nations tend to spend significantly more than developing countries.

The US mental health and substance abuse services industry includes about 15,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $24 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 percent of segment revenue; the top 50 residential companies account for about 25 percent of segment revenue....



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