Los Angeles, CA (PRWEB) February 11, 2013
The rising awareness and acceptance of mental health and substance abuse illnesses has contributed to steady revenue growth for the Mental Health and Substance Abuse Centres industry. At any given time, mental illness affects about 10.4% of Canadians, according to the Mood Disorders Society of Canada. Workplace depression, which is considered to be the fastest-growing category of disability costs, is becoming a significant and growing concern among medical practitioners and employers. According to IBISWorld industry analyst Anna Son, many employers have been offering supplemental benefits that allow employees to access pharmacological treatments and counseling services, stimulating industry demand. Consequently, during the five years to 2013, IBISWorld estimates industry revenue is growing at an average annual rate of 3.1% to total $2.0 billion. In 2013, revenue is projected to grow 2.2% on the back of growing demand for industry services, favourable economic climate and government efforts to improve the mental health system.
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, says Son. The past 10 years have sparked interest 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 industry operators. Market share concentration in the Mental Health and Substance Abuse Centres industry is low. The largest industry operator is the Centre for Addiction and Mental Health (CAMH) and is one of the few operators that services patients with both substance abuse disorders and mental health disorders. Currently, industry operators are mostly independent and compartmentalized, servicing either substance abuse patients or patients with mental health issues. Over the next five years, industry concentration is likely to increase slightly as further study is done on concurrent disorders. In response, operators will likely consolidate to provide patients with more diverse treatment services.
During the five years to 2018, industry revenue is forecast to grow. Demand for mental health and substance abuse treatment is forecast to increase in line with population growth and improvement in the social stigma around mental health. 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 the shift from inpatient to outpatient care, such as care provided in community and private settings. The shift toward outpatient care is expected to pressure industry revenue and decrease the number of operators. Several 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 & Substance Abuse Centres in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry 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, but 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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