The COVID-19 pandemic has significantly impacted every sector, with some niche industries seeing an increase in demand, while others have struggled due to labor challenges, supply chain disruptions, and operational shutdowns. Mental health remains a core focus as the pandemic has increased the attention to the entire behavioral health and mental health space.
Demand for mental health and substance use treatment is at an all-time high in the U.S., impacting nearly 1 in 5 Americans. Less than half of Americans who have a mental disorder get proper treatment and less than 10% of patients who have a mental health disorder actually get effective treatment. Recently released data shows that drug overdose deaths reached a record high of 93,331 in 2020, more than 20,000 deaths above the previous high in 2019 and the largest single-year percentage increase on record since 1999.
Staffing and labor challenges have impacted nearly every sector including mental health treatment clinics and centers across the U.S. On a national level, research shows that the U.S. is likely to continue to experience a shortage of mental health professionals through 2025.
Spending on mental health treatment and services reached $328 billion in 2020, which is up 62% since 2009, and includes spending on things such as therapy and prescription medications as well as stays in psychiatric or substance abuse rehabilitation facilities. This doesn't take into account indirect costs such as lower workforce participation rates and decreased productivity. Depression alone is estimated to account for $44 billion in losses in workplace activity.
Mental health agency spending varies by state. States including Arizona, California, Texas, Minnesota, and Ohio, amongst others highlighted in dark blue below, have spend ranging from $730 million to $7 billion. Meanwhile other states including North and South Dakota, Nebraska, and Arkansas have spend less than $188 million, representing a meaningful discrepancy of expenditures.
The RiverStone Reporting team has extensive experience in assisting mental health clinics and behavioral health treatment centers in analyzing KPI metrics, creating staffing efficiencies and allowing for your business to expand care and service offerings to patients. We can help your business evaluate clinic-level trends on a monthly and quarterly basis, help expand your margin profile, develop a robust company presentation, assist your business in raising capital, and being a value-added thought partner to improve overall operations. Email our RiverStone team at info@RiverStoneReporting.com to learn more about how we can help.
Sources: American Addiction Centers, Kaiser Permanente, National Institute of Minority Health and Health Disparities (NIMHD), Centers for Disease and Control Prevention (CDC).