U.S. Behavioral Health Market to Hit USD 136.60 Bn by 2032
According to recent projections, the U.S. behavioral health market is estimated to reach USD 136.60 billion by 2032, representing a CAGR of 5.1% between 2023 and 2032. This growth trajectory is driven by various factors, including increased demand, technological advancements, and policy initiatives.
Download a short version of this report @ https://www.towardshealthcare.com/personalized-scope/5007
The COVID-19 pandemic and the resulting economic downturn have significantly impacted many people's mental health in the US. Those already struggling with mental illness or addiction are facing even greater challenges. About 4 in 10 individuals have reported symptoms of anxiety or depression during the pandemic, a figure that has remained relatively stable but is much higher than the 1 in 10 adults who experienced similar symptoms before the pandemic, from January to June 2019.
According to a July 2020 Health Tracking Poll by the Kaiser Family Foundation (KFF), many adults have experienced negative effects on their mental well-being. These include difficulties sleeping (around 36%) or eating (approximately 32%) due to stress and worry about the coronavirus, increases in alcohol or substance consumption (around 12%), and worsening chronic conditions (approximately 12%). As the pandemic continues, ongoing public health measures and job losses are putting more people at risk of negative mental health outcomes such as isolation and increased stress.
Impact of the COVID-19 Pandemic on Substance Use and Mental Health
Throughout the COVID-19 pandemic, concerns regarding substance use and mental health, including suicidal ideation, have escalated. In January 2021, 41% of people reported symptoms of anxiety or depression, a figure relatively unchanged since spring 2020. A June 2020 poll revealed that 13% of respondents increased drug or alcohol usage due to pandemic-related stress, with 11% reporting suicidal thoughts in the past month. This rise in mental health challenges aligns with a pre-existing trend of increasing suicide rates, potentially exacerbated by the pandemic. Early 2020 data showed a spike in drug overdose deaths from March to May 2020, coinciding with the onset of lockdowns.
Undoubtedly, the pandemic has impacted mental health in various ways, notably through widespread social isolation due to safety measures. Research indicates a link between social isolation, loneliness, and poor mental and physical health. Loneliness, a pre-pandemic public health concern, correlates with shorter lifespans and higher risks of physical and mental illnesses. A Kaiser Family Foundation (KFF) Health Tracking Poll conducted in late March 2020 found that individuals who chose to shelter-in-place were more likely to suffer from pandemic-related stress or fear, leading to poor mental health effects.
The pandemic's impact on substance use and mental health extends beyond immediate concerns to long-term effects, particularly for at-risk individuals and those facing treatment barriers. Although vaccinations are being distributed, challenges such as slow rollout, vaccine hesitancy, and ongoing precautions may persist, prolonging pandemic-related stressors. Research on past disasters suggests that the mental health effects may outlast the physical ones, with studies on healthcare workers indicating psychological distress persisting for up to three years post-outbreak. The pandemic's economic repercussions may lead to a rise in "deaths of despair," including suicides and fatalities from substance abuse, expected to peak around 2027. Policymakers must anticipate sustained demand for mental health and substance use services, even as COVID-19 cases decline.
Telehealth's Impact on the US Behavioral Health Market
The COVID-19 pandemic has accelerated the adoption of telemedicine, particularly in the field of behavioral health. This evolution in telehealth is offering new benefits for service providers, patients, and overall healthcare systems, presenting both opportunities and challenges within the US behavioral health market.
Example of Telehealth Implementation
One notable implementation of telehealth is seen in the Eastern Shore Mobile Care Collaborative (ESMCC) at the Caroline County Health Department. This initiative aims to enhance access to medication-based treatment for individuals with opioid use disorders (OUD) in underserved rural areas. By integrating in-person and telehealth services, ESMCC seeks to address care gaps in Caroline County, located on Maryland's Eastern Shore.
Another example is the Citywide Case Management Program (Citywide), a division of the UCSF Department of Psychiatry, which has been operational since 1981. Run by Zuckerberg San Francisco General Hospital (ZSFG), Citywide utilizes telehealth to provide comprehensive mental health services.
Drivers of the US Behavioral Health Market
Restraints on the US Behavioral Health Market
Payer-Based Strategies to Improve Behavioral Healthcare Access
Despite a national requirement for measurement-based behavioral healthcare, its adoption remains low due to provider resistance and inadequate technological infrastructure. Consequently, only around 50% of Americans with mental health issues receive care, often without quality measurement.
To address these challenges, innovative approaches are needed. Payers, criticized for their role in limiting access, now have a pivotal role to play. Traditionally, payers focused on cost reduction, often through carve-out arrangements, exacerbating fragmentation and access problems. However, the COVID-19 pandemic highlights the urgency for change. Accountable care organizations (ACOs) and risk-bearing entities must recognize the impact of mental health on overall health and costs.
Blue Shield of North Carolina (Blue Cross NC) and Blue Cross have initiated a long-term strategy, now in its second year, aimed at enhancing accessibility, effectiveness, and quality of mental health care. Key components include care integration, quantifying impact, deploying scalable solutions, and increasing value-based reimbursement. This strategy, conceived pre-COVID, proved adaptable, emphasizing the importance of payment reform in fostering a responsive behavioral health system.
领英推荐
Landscape of Behavioral Health Services in the US
In 2020, outpatient counseling dominated the market (35.1%), expected to persist. Outpatient care offers flexibility, affordability, and a larger provider pool, making it suitable for conditions like eating disorders, depression, or anxiety where ongoing support is needed.
The internet has revolutionized rehabilitation, offering new therapeutic options. Online platforms enable group sessions, face-to-face chats, and video calls with licensed professionals, enhancing accessibility and improving outcomes, particularly for addiction treatment.
The demand for home-based services is predicted to rise, leading to a decline in inpatient hospital treatments (22.0% in 2020). Pre-COVID, payers limited coverage for home-based modalities to specific conditions or comorbidities. However, the pandemic's impact on telehealth policies has significantly improved access to care, particularly in emergencies.
Disorder Trends in the US Behavioral Health Market
In 2020, anxiety and depressive disorders dominated the US behavioral health market due to the widespread impact of COVID-19, which caused lockdowns and social isolation. Following closely, substance addiction disorders were the second most prevalent issue.
Long-term effects of COVID-19, such as isolation and social withdrawal, have significantly impacted patients with bipolar disorders, leading to slower recovery rates and increased treatment costs. Additionally, as more individuals and frontline workers experience loss, post-traumatic stress disorder (PTSD) prevalence is expected to rise. Furthermore, conditions like suicide, phobias, schizophrenia, and sleep disorders are anticipated to become more common.
End-User Landscape in the US Behavioral Health Market
In 2020, outpatient clinics held the largest market share at 36.9%, largely due to the prevalence of mild to moderate symptoms that don't require hospitalization. This trend is expected to continue.
Traditionally, mental health professionals have operated independently from primary care doctors. However, integrating behavioral health with primary care can ensure patients receive treatment earlier, reducing costs for both patients and providers. For example, Genoa Healthcare's integration of telepsychiatry, medical management, and outpatient mental health care has created a patient-centered model, addressing accessibility issues.
Expected Trends in the US Behavioral Health Market Post-COVID-19
Demand for homecare settings is expected to increase due to patient preference, along with the growing adoption of telehealth solutions by doctors and patients. Advancements in technology, including patient portals, online support groups, and wearable sensors, are anticipated to enhance the effectiveness and safety of home care. This segment's growth is expected to be accelerated by the increasing adoption of telehealth solutions.
Overview of the US Behavioral Health Market Landscape
One out of every four Medicare users in the United States suffers from a mental disorder. The prevalence of mental illness appears to be slightly higher among Medicare enrollees in traditional Medicare than in Medicare Advantage managed care plans. However, making comparisons is challenging due to varied data sources and measures used in different research. Traditional Medicare beneficiaries are more likely to suffer from severe mental illnesses such as schizophrenia, bipolar disorder, or major depressive disorder, which significantly disable them.
Prevalence of Mental Illness Among Medicare Beneficiaries: According to statistics, over 112 million Americans reside in areas with a shortage of mental healthcare providers. By 2025, shortages of counselors, psychiatrists, mental health social workers, clinical and counseling psychologists, and other specialized professionals are expected to worsen, according to experts. Rural areas experience a particularly acute shortage of mental health providers, although the prevalence of mental disease among beneficiaries is comparable between rural and urban areas.
Recently, a cost-sharing element has been added to outpatient mental health therapies. As of January 2014, Medicare beneficiaries pay a 20% coinsurance for both types of outpatient treatment, as required by the Medicare Improvements for Patients and Providers Act (MIPAA) of 2008, which mandated the elimination of disparities in cost-sharing between mental health and general medical outpatient services. This policy adjustment has been associated with an increase in outpatient mental health follow-up care for psychiatric hospitalization, particularly among Medicare members living in low-income, low-education areas.
Competitive Landscape of the US Behavioral Health Market: The market for behavioral health in the US is highly fragmented, with separate units of mental health hospitals and clinics, non-profit organizations, and providers from throughout the country. As of 2020, the top three revenue-producing businesses in this sector were Ardent Health Services, Acadia Healthcare, and Universal Health Services. The market is expanding due to the rising prevalence of mental diseases such as PTSD, anxiety, depression, and substance misuse, especially over the past year because of the pandemic.
However, as COVID-19 cases have received more attention and hospital patient volumes have declined, mental health care has suffered. These restrictions have opened the door for telehealth options like texting, phone and video consultations, apps for accessing patient, pharmacy, and doctor information, and more. It's anticipated that several start-ups will enter the US behavioral health industry in the coming years, introducing cutting-edge technology.
To own our research study instantly, Click here @ https://www.towardshealthcare.com/price/5007
You can place an order or ask any questions, please feel free to contact us at [email protected]
About Us
Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations. We are a global strategy consulting firm that assists business leaders in gaining a competitive edge and accelerating growth. We are a provider of technological solutions, clinical research services, and advanced analytics to the healthcare sector, committed to forming creative connections that result in actionable insights and creative innovations.
Explore the comprehensive statistics and insights on healthcare industry data and its associated segmentation: Get a Subscription