Baby boomers, who are more prone to mental illnesses as they age, will spur demand
New York, NY (PRWEB) April 26, 2014
The rising awareness and acceptance of mental health and substance abuse illnesses has contributed to revenue growth for the Mental Health and Substance Abuse Centres industry. According to the Mental Health Commission of Canada, mental illness affects 18.8% of Canadians each year. Workplace depression, considered to be the fastest-growing sector of disability costs, is becoming a significant and growing concern among physicians and employers. Many employers have been offering supplemental benefits that allow employees to access pharmacological treatments and counseling services, stimulating industry demand. Consequently, in the five years to 2014, industry revenue is estimated to grow an annualized 1.3% to $2.1 billion. In 2014, Mental Health Abuse and Substance Centres industry revenue is projected to grow 6.2% in line with growing demand for industry services, a favourable economic climate and government efforts to improve the mental health system.
According to IBISWorld Industry Analyst Sally Lerman, “Despite the persisting need for mental health and substance abuse treatment, those seeking help for co-occurring mental health and substance abuse issues often face difficulty finding appropriate care due to the structure of the mental health system.” Profit also suffered slightly as many industry fees are paid out of pocket and disposable income has been fluctuating. There is interest within the medical profession in creating collaborative partnerships between primary care and mental healthcare providers, supporting the integration of mental health services within primary care. Nevertheless, Canada's mental health and substance abuse system remains largely independent and compartmentalized, thus representing a challenge for operators.
“Over the five years to 2019, demand for mental health and substance abuse treatment is forecast to increase in line with population growth and improvements in the social stigma around mental health,” says Lerman. The growing population of aging baby boomers, who are more prone to develop mental illnesses as they age, will further spur industry demand. However, the industry will experience a shift from inpatient to outpatient care, leading to more care being provided in community and private settings. This shift is expected to pressure industry revenue and decrease the number of operators. Other factors, such as new medical technologies and noninvasive procedures that reduce the need for hospitalization, are expected to change the way that certain services are delivered.
For more information, visit IBISWorld’s Mental Health Abuse and Substance Centres in Canada industry report page.
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IBISWorld industry Report Key Topics
The Mental Health Abuse and Substance Centres industry primarily provides residential care and treatment for patients with mental illnesses, drug addiction and alcoholism. Industry services include lodging, supervision, evaluation and counselling. Medical services may be available; however, these are incidental to counselling, mental rehabilitation and support services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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