NAICS Code 622210 - Psychiatric and Substance Abuse Hospitals

Government Level - NAICS 6-Digit - Updated to 2022 NAICS

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NAICS CODE 622210
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NAICS Code 622210 Description

This industry comprises establishments known and licensed as psychiatric and substance abuse hospitals primarily engaged in providing diagnostic, medical treatment, and monitoring services for inpatients who suffer from mental illness or substance abuse disorders. The treatment often requires an extended stay in the hospital. These establishments maintain inpatient beds and provide patients with food services that meet their nutritional requirements. They have an organized staff of physicians and other medical staff to provide patient care services. Psychiatric, psychological, and social work services are available at the facility. These hospitals usually provide other services, such as outpatient services, clinical laboratory services, diagnostic X-ray services, and electroencephalograph services. Source: Census.gov - NAICS 2022 compliant

NAICS Code 622210 - Psychiatric and Substance Abuse Hospitals is a final level code of the “Health Care and Social Assistance” Sector. There are 12,748 companies verified as active in this industry in the USA with an estimated employment of 232,484 people.

Industry Sector

Health Care and Social Assistance

Annual Payroll

$11,444,781,000

Total Revenue

$22,449,387,000

SBA Size Standard

Annual Revenue Limit of $41,500,000

Parent Category - 5-digit Level (less specific)

Industry Examples of NAICS 622210

Common types of examples within NAICS Code 622210 - Psychiatric and Substance Abuse Hospitals are:

  • Alcoholism rehabilitation hospitals
  • Children's hospitals, psychiatric or substance abuse
  • Detoxification hospitals
  • Drug addiction rehabilitation hospitals
  • Hospitals for alcoholics
  • Hospitals, addiction
  • Hospitals, mental (except intellectual and developmental disability)
  • Hospitals, psychiatric (except convalescent)
  • Hospitals, psychiatric pediatric
  • Hospitals, substance abuse
  • Mental (except intellectual and developmental disability) hospitals
  • Mental health hospitals
  • Psychiatric hospitals (except convalescent)
  • Rehabilitation hospitals, alcoholism and drug addiction

Industry Image

Example photo for industry NAICS 622210 - Psychiatric and Substance Abuse Hospitals . This image represents an activity or product found in this industry.

Cross-References

For some business types, there may be a similar industry to NAICS Code 622210 - Psychiatric and Substance Abuse Hospitals that is a better classification match. Establishments primarily engaged in providing treatment of mental health and substance abuse illnesses on an exclusively outpatient basis are classified in NAICS Code 621420 - Outpatient Mental Health and Substance Abuse Centers; Establishments referred to as hospitals but primarily engaged in providing inpatient treatment of mental health and substance abuse illnesses with the emphasis on counseling rather than medical treatment are classified in NAICS Code 623220 - Residential Mental Health and Substance Abuse Facilities; and Establishments referred to as hospitals but primarily engaged in providing residential care for persons with intellectual and developmental disabilities are classified in NAICS Code 623210 - Residential Intellectual and Developmental Disability Facilities.

Companies

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Industry Executives

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  • Director
  • Engineering
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  • Facilities
  • Finance
  • Human Resource
  • IT
  • Manager
  • Marketing
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  • Owner
  • Partner
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Innovations and Milestones in Psychiatric and Substance Abuse Hospitals (NAICS Code: 622210)

An In-Depth Look at Recent Innovations and Milestones in the Psychiatric and Substance Abuse Hospitals Industry: Understanding Their Context, Significance, and Influence on Industry Practices and Consumer Behavior.

  • Telepsychiatry Expansion

    Type: Innovation

    Description: The widespread adoption of telepsychiatry has transformed access to mental health services, allowing patients to receive care remotely through video conferencing. This innovation has made it easier for individuals in underserved areas to connect with mental health professionals, reducing barriers to treatment.

    Context: The COVID-19 pandemic accelerated the acceptance and implementation of telehealth services, including telepsychiatry. Regulatory changes, such as relaxed licensing requirements and expanded reimbursement policies, facilitated this shift, making virtual care a viable option for many patients.

    Impact: Telepsychiatry has significantly increased patient access to mental health services, improving treatment adherence and outcomes. This innovation has also prompted hospitals to rethink their service delivery models, leading to a more integrated approach to mental health care.

  • Integrated Behavioral Health Models

    Type: Innovation

    Description: The development of integrated behavioral health models combines mental health and substance abuse treatment with primary care services. This approach ensures that patients receive comprehensive care addressing both physical and mental health needs simultaneously.

    Context: Growing recognition of the interconnectedness of physical and mental health has driven the adoption of integrated care models. Regulatory support for collaborative care initiatives has further encouraged hospitals to implement these comprehensive treatment strategies.

    Impact: Integrated behavioral health models have improved patient outcomes by providing holistic care, reducing stigma associated with seeking mental health treatment, and fostering collaboration among healthcare providers. This shift has also enhanced the efficiency of service delivery within psychiatric hospitals.

  • Trauma-Informed Care Practices

    Type: Milestone

    Description: The adoption of trauma-informed care practices represents a significant milestone in the treatment of individuals with mental health and substance abuse issues. This approach emphasizes understanding, recognizing, and responding to the effects of trauma on patients' lives.

    Context: Increased awareness of the prevalence of trauma among individuals seeking mental health services has led to a paradigm shift in treatment approaches. Training programs and guidelines have been developed to support the implementation of trauma-informed care across psychiatric facilities.

    Impact: Trauma-informed care has transformed treatment practices by prioritizing patient safety, empowerment, and collaboration. This milestone has improved therapeutic relationships and outcomes, fostering a more supportive environment for recovery.

  • Use of Artificial Intelligence in Diagnostics

    Type: Innovation

    Description: The integration of artificial intelligence (AI) in diagnostic processes has enabled more accurate and timely identification of mental health disorders. AI algorithms analyze patient data to assist clinicians in making informed decisions regarding treatment plans.

    Context: Advancements in machine learning and data analytics have made it possible to leverage AI in clinical settings. The growing availability of electronic health records and patient data has provided the necessary foundation for these technologies to thrive.

    Impact: AI-driven diagnostics have enhanced the precision of mental health assessments, leading to more personalized treatment approaches. This innovation has also increased the efficiency of care delivery, allowing clinicians to focus on patient interactions while relying on technology for data analysis.

  • Medication-Assisted Treatment (MAT) Expansion

    Type: Milestone

    Description: The expansion of medication-assisted treatment (MAT) for substance use disorders has marked a critical milestone in addressing addiction. MAT combines behavioral therapy with medications to provide a comprehensive approach to recovery.

    Context: Rising opioid addiction rates and the opioid crisis have prompted a national focus on effective treatment options. Regulatory changes have facilitated the broader use of MAT, including the removal of certain prescribing restrictions for healthcare providers.

    Impact: The increased availability of MAT has significantly improved recovery rates for individuals with substance use disorders. This milestone has reshaped treatment protocols in psychiatric hospitals, emphasizing the importance of combining medication with counseling and support services.

Required Materials or Services for Psychiatric and Substance Abuse Hospitals

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the Psychiatric and Substance Abuse Hospitals industry. It highlights the primary inputs that Psychiatric and Substance Abuse Hospitals professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Behavioral Health Training Programs: Educational programs designed for staff to enhance their skills in managing and treating patients with mental health and substance use disorders.

Clinical Laboratory Services: Laboratory testing services that provide critical diagnostic information to guide treatment decisions for patients with mental health and substance use disorders.

Crisis Intervention Services: Immediate support services designed to address acute psychiatric crises, ensuring patient safety and stabilization.

Family Therapy Sessions: Therapeutic meetings involving family members to improve communication and support systems for patients undergoing treatment.

Nutritional Services: Meal planning and preparation services that ensure patients receive balanced diets tailored to their health needs during their stay.

Outpatient Follow-Up Services: Post-discharge support services that help patients transition back into the community and maintain their treatment plans.

Psychiatric Evaluation Services: Professional assessments conducted by licensed psychiatrists to diagnose mental health conditions and determine appropriate treatment plans.

Recreational Therapy: Structured activities led by trained therapists aimed at improving patients' physical, emotional, and social well-being through engaging experiences.

Social Work Services: Support provided by licensed social workers to assist patients in navigating social challenges and accessing community resources for ongoing care.

Substance Abuse Counseling: Therapeutic sessions provided by certified counselors to help patients understand their addiction and develop coping strategies for recovery.

Equipment

Diagnostic Imaging Equipment: Tools such as MRI and CT scanners used to visualize brain structures and identify any abnormalities that may affect mental health.

Electroencephalogram (EEG) Machines: Devices used to measure electrical activity in the brain, aiding in the diagnosis of conditions such as epilepsy and other neurological disorders.

Patient Monitoring Systems: Advanced technology used to continuously monitor patients' vital signs and mental status, ensuring timely interventions when necessary.

Telehealth Platforms: Technological solutions that enable remote consultations and therapy sessions, expanding access to care for patients unable to visit in person.

Therapeutic Beds: Specialized beds designed for patient comfort and safety, often equipped with features to assist in the care of individuals with mental health issues.

Material

Comfort Items: Personal items such as blankets and pillows that enhance patient comfort and create a more homelike environment during their stay.

Medical Supplies: Essential items such as bandages, syringes, and personal protective equipment that support daily medical care and patient treatment.

Pharmaceuticals: Medications prescribed to manage mental health disorders and substance abuse, crucial for stabilizing patients and facilitating recovery.

Safety Equipment: Items such as restraints and safety alarms that ensure the safety of both patients and staff in high-risk situations.

Therapeutic Supplies: Items like art supplies or exercise equipment used in therapeutic programs to promote healing and self-expression among patients.

Products and Services Supplied by NAICS Code 622210

Explore a detailed compilation of the unique products and services offered by the industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the industry. It highlights the primary inputs that professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Service

Clinical Laboratory Services: These services conduct various tests to monitor patients' health, including blood tests and psychological assessments. The results inform treatment decisions and help track the effectiveness of interventions.

Crisis Intervention Services: These services provide immediate support for individuals experiencing acute mental health crises. Trained professionals assess the situation and implement strategies to stabilize the individual and connect them to appropriate resources.

Diagnostic Imaging Services: Offering services such as X-rays and MRIs, these diagnostic tools assist in identifying underlying medical conditions that may affect mental health. Accurate imaging is vital for comprehensive patient care.

Discharge Planning Services: This service involves preparing patients for a successful transition from inpatient care to outpatient support. It includes coordinating follow-up appointments, community resources, and ongoing therapy to ensure continuity of care.

Electroencephalogram (EEG) Services: EEG services measure electrical activity in the brain, helping to diagnose conditions such as seizures or other neurological disorders. This non-invasive procedure is essential for understanding a patient's mental health.

Family Therapy Services: Involving family members in the treatment process, this service aims to improve communication and resolve conflicts within the family unit. Family therapy can be instrumental in supporting the patient’s recovery journey.

Group Therapy Sessions: Facilitated by trained therapists, these sessions allow patients to share experiences and support one another in a safe environment. Group therapy fosters community and helps individuals realize they are not alone in their struggles.

Individual Therapy Sessions: One-on-one therapy sessions provide patients with personalized support to address their mental health challenges. Therapists utilize various modalities, including cognitive-behavioral therapy and psychodynamic therapy, to facilitate healing and personal growth.

Inpatient Psychiatric Care: This service provides comprehensive mental health treatment for individuals requiring hospitalization due to severe mental illness. Patients receive 24/7 care from a multidisciplinary team, including psychiatrists, nurses, and therapists, ensuring a structured environment conducive to recovery.

Medication Management: Psychiatrists prescribe and monitor medications to help manage symptoms of mental illness and substance abuse disorders. This service ensures that patients receive the correct dosages and adjustments necessary for effective treatment.

Nutritional Services: Hospitals offer tailored meal plans that meet the dietary needs of patients, ensuring they receive proper nutrition during their stay. This service is essential for overall health and recovery, particularly for those with specific dietary restrictions.

Outpatient Therapy Services: After discharge, patients can continue their treatment through outpatient therapy, which provides ongoing support and counseling. This service helps individuals maintain their progress and manage their mental health in everyday life.

Psychiatric Evaluation Services: Conducted by licensed mental health professionals, these evaluations assess a patient's mental health status and determine appropriate treatment plans. This service is crucial for diagnosing conditions such as depression, anxiety, and schizophrenia.

Social Work Services: Social workers provide support and resources to patients and their families, helping them navigate the complexities of mental health care. They assist with practical matters such as housing, employment, and accessing community services.

Substance Abuse Treatment Programs: These programs are designed for individuals struggling with addiction, offering a combination of medical detoxification, counseling, and support groups. The goal is to help patients achieve sobriety and develop coping strategies to maintain long-term recovery.

Comprehensive PESTLE Analysis for Psychiatric and Substance Abuse Hospitals

A thorough examination of the Psychiatric and Substance Abuse Hospitals industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

  • Healthcare Policy Changes

    Description: Recent healthcare policy changes, including the expansion of mental health services under the Affordable Care Act, have significantly impacted psychiatric and substance abuse hospitals. These policies aim to increase access to mental health care and reduce stigma associated with seeking treatment.

    Impact: Such policy changes can lead to increased patient volumes and funding opportunities, enhancing the financial viability of hospitals. However, they may also impose new compliance requirements and operational challenges, necessitating adjustments in service delivery models.

    Trend Analysis: Historically, mental health policies have evolved towards greater inclusivity and support. Currently, there is a strong trend towards integrating mental health services with primary care, which is expected to continue. The certainty of this trend is high, driven by ongoing advocacy and public health initiatives.

    Trend: Increasing
    Relevance: High

  • Regulatory Oversight

    Description: The psychiatric and substance abuse hospital sector is subject to stringent regulatory oversight from federal and state agencies, including the Centers for Medicare & Medicaid Services (CMS). Recent updates to regulations have focused on quality of care and patient safety.

    Impact: Increased regulatory scrutiny can lead to higher operational costs due to compliance requirements. Hospitals must invest in staff training and quality improvement initiatives to meet these standards, which can strain resources but ultimately improve patient outcomes.

    Trend Analysis: The trend of increasing regulatory oversight has been consistent, with a high level of certainty regarding its impact on operational practices. This trend is driven by heightened awareness of patient safety and quality of care issues in the healthcare sector.

    Trend: Increasing
    Relevance: High

Economic Factors

  • Funding and Reimbursement Models

    Description: Changes in funding and reimbursement models, particularly those related to Medicaid and Medicare, have a profound impact on psychiatric and substance abuse hospitals. Recent shifts towards value-based care emphasize outcomes rather than service volume.

    Impact: These changes can affect hospital revenues and necessitate adjustments in care delivery to meet performance metrics. Hospitals may need to invest in data analytics and care coordination to optimize reimbursement, impacting operational strategies and financial health.

    Trend Analysis: The trend towards value-based care has been gaining momentum over the past few years, with a strong likelihood of continued growth as payers seek to control costs. The level of certainty regarding this trend is high, influenced by ongoing healthcare reforms and economic pressures.

    Trend: Increasing
    Relevance: High

  • Economic Conditions

    Description: Economic conditions, including unemployment rates and overall economic stability, directly influence the demand for mental health services. Economic downturns can lead to increased substance abuse and mental health issues, driving demand for hospital services.

    Impact: During economic downturns, hospitals may experience higher patient volumes, but they may also face challenges related to funding and reimbursement. Conversely, in stable economic conditions, hospitals may see more consistent funding and patient engagement, impacting operational planning.

    Trend Analysis: Economic conditions have shown variability, with recent inflationary pressures affecting consumer behavior and healthcare spending. The trend is currently unstable, with predictions of potential recessionary impacts in the near future, leading to cautious financial planning.

    Trend: Decreasing
    Relevance: Medium

Social Factors

  • Stigma Reduction and Awareness

    Description: There is a growing movement towards reducing stigma associated with mental health and substance abuse disorders, driven by public awareness campaigns and advocacy groups. This shift is particularly evident among younger populations who are more open to discussing mental health issues.

    Impact: As stigma decreases, more individuals are likely to seek treatment, leading to increased patient volumes for psychiatric and substance abuse hospitals. This cultural shift can enhance the overall perception of mental health services and encourage investment in these facilities.

    Trend Analysis: The trend towards stigma reduction has been steadily increasing, with a high level of certainty regarding its future trajectory. This movement is supported by social media campaigns and public figures advocating for mental health awareness.

    Trend: Increasing
    Relevance: High

  • Aging Population

    Description: The aging population in the United States is leading to an increased prevalence of mental health issues and substance abuse disorders among older adults. This demographic shift necessitates tailored services and programs to address the unique needs of this population.

    Impact: As the demand for specialized services for older adults rises, psychiatric and substance abuse hospitals must adapt their offerings to meet these needs. This may involve training staff in geriatric mental health care and developing targeted treatment programs, impacting operational strategies.

    Trend Analysis: The trend of an aging population is well-established, with projections indicating significant growth in the older adult demographic over the next few decades. The level of certainty regarding this trend is high, driven by demographic data and healthcare forecasts.

    Trend: Increasing
    Relevance: High

Technological Factors

  • Telehealth Adoption

    Description: The adoption of telehealth services has accelerated in response to the COVID-19 pandemic, providing new avenues for psychiatric and substance abuse hospitals to deliver care. This technology allows for remote consultations and ongoing patient monitoring.

    Impact: Telehealth can enhance access to care, particularly for individuals in underserved areas, and improve patient engagement. However, hospitals must invest in technology infrastructure and training to effectively implement these services, impacting operational costs and service delivery.

    Trend Analysis: The trend towards telehealth has shown a consistent upward trajectory, with predictions indicating continued expansion as patients and providers embrace digital health solutions. The level of certainty regarding this trend is high, influenced by regulatory support and patient preferences.

    Trend: Increasing
    Relevance: High

  • Data Analytics in Patient Care

    Description: The use of data analytics in patient care is transforming how psychiatric and substance abuse hospitals manage treatment outcomes and operational efficiency. Advanced analytics can help identify patient needs and optimize resource allocation.

    Impact: Implementing data analytics can lead to improved patient outcomes and operational efficiencies, allowing hospitals to better allocate resources and tailor treatments. However, the initial investment in technology and training can be significant, posing challenges for smaller facilities.

    Trend Analysis: The trend of integrating data analytics into healthcare has been growing, with a high level of certainty regarding its future impact. This trend is driven by the increasing availability of health data and the need for evidence-based practices in treatment.

    Trend: Increasing
    Relevance: High

Legal Factors

  • Mental Health Legislation

    Description: Legislation related to mental health care, including the Mental Health Parity and Addiction Equity Act, mandates that mental health services be covered by insurance at the same level as physical health services. Recent legal developments have reinforced these requirements, impacting hospital operations.

    Impact: Compliance with mental health legislation is crucial for hospitals to ensure reimbursement and avoid legal repercussions. Non-compliance can lead to financial penalties and reduced patient trust, necessitating ongoing legal and operational adjustments.

    Trend Analysis: The trend towards stronger mental health legislation has been increasing, with a high level of certainty regarding its impact on the industry. This trend is driven by advocacy efforts and public demand for equitable mental health care.

    Trend: Increasing
    Relevance: High

  • Patient Privacy Regulations

    Description: Patient privacy regulations, including the Health Insurance Portability and Accountability Act (HIPAA), govern how psychiatric and substance abuse hospitals handle patient information. Recent updates have emphasized the importance of data security and patient consent.

    Impact: Compliance with patient privacy regulations is essential for maintaining patient trust and avoiding legal issues. Hospitals must invest in secure systems and staff training to protect sensitive information, impacting operational costs and resource allocation.

    Trend Analysis: The trend of increasing patient privacy regulations has been stable, with a high level of certainty regarding its ongoing relevance. This trend is driven by growing concerns over data breaches and patient rights.

    Trend: Stable
    Relevance: High

Economical Factors

  • Impact of Environmental Factors on Mental Health

    Description: Research indicates that environmental factors, such as pollution and climate change, can significantly impact mental health outcomes. This has led to increased awareness of the need for holistic approaches to mental health treatment that consider environmental influences.

    Impact: Understanding the connection between environmental factors and mental health can enhance treatment approaches and patient outcomes. Hospitals may need to incorporate environmental assessments into their care models, impacting operational practices and service offerings.

    Trend Analysis: The trend of recognizing environmental impacts on mental health is increasing, with a high level of certainty regarding its future relevance. This trend is supported by ongoing research and public health initiatives aimed at addressing environmental determinants of health.

    Trend: Increasing
    Relevance: High

  • Sustainability Practices in Healthcare

    Description: There is a growing emphasis on sustainability practices within healthcare, including psychiatric and substance abuse hospitals. This includes initiatives to reduce waste, improve energy efficiency, and promote environmentally friendly practices.

    Impact: Adopting sustainability practices can enhance hospital reputation and align with community values, potentially attracting more patients. However, implementing these practices may require significant investment and operational changes, impacting financial resources.

    Trend Analysis: The trend towards sustainability in healthcare has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable practices in healthcare.

    Trend: Increasing
    Relevance: High

Value Chain Analysis for NAICS 622210

Value Chain Position

Category: Service Provider
Value Stage: Final
Description: Psychiatric and substance abuse hospitals operate as service providers in the healthcare sector, focusing on delivering specialized medical treatment and support for individuals suffering from mental health and substance use disorders. These facilities provide comprehensive care that often requires extended inpatient stays, ensuring patients receive the necessary medical and therapeutic interventions.

Upstream Industries

  • Medical Laboratories - NAICS 621511
    Importance: Critical
    Description: These hospitals depend on medical laboratories for diagnostic testing services, which are essential for accurate patient assessments. The laboratories provide critical inputs such as blood tests and psychological evaluations that inform treatment plans and patient care.
  • Pharmaceutical Preparation Manufacturing - NAICS 325412
    Importance: Critical
    Description: Pharmaceutical manufacturers supply essential medications used in treatment protocols for mental health and substance abuse disorders. The quality and efficacy of these medications are vital for patient recovery, and hospitals maintain strict standards for sourcing and administering these drugs.
  • Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers - NAICS 423450
    Importance: Important
    Description: Hospitals require a range of medical supplies and equipment, including diagnostic tools and therapeutic devices. The relationship with suppliers is important for ensuring that hospitals have access to the latest technology and equipment necessary for effective patient care.

Downstream Industries

  • Direct to Consumer- NAICS
    Importance: Critical
    Description: Patients receiving treatment directly benefit from the services provided by these hospitals, which are designed to improve their mental health and overall well-being. The quality of care directly impacts patient outcomes and satisfaction, making this relationship crucial.
  • Outpatient Mental Health and Substance Abuse Centers- NAICS
    Importance: Important
    Description: These centers often refer patients for inpatient care when necessary and rely on hospitals for comprehensive treatment options. The continuity of care between inpatient and outpatient services is essential for effective recovery and rehabilitation.
  • Government Procurement- NAICS
    Importance: Important
    Description: Government agencies may contract with psychiatric hospitals to provide services for specific populations, such as veterans or low-income individuals. These relationships are important for ensuring access to care for underserved communities and maintaining compliance with regulatory standards.

Primary Activities

Inbound Logistics: Receiving and handling processes involve the intake of patients, which includes comprehensive assessments and medical history reviews. Hospitals maintain strict protocols for patient admissions to ensure safety and appropriateness of care. Quality control measures include thorough evaluations by medical staff to determine the best treatment plans for each patient.

Operations: Core processes include psychiatric evaluations, individualized treatment planning, medication management, and therapeutic interventions. Quality management practices involve continuous monitoring of patient progress and adherence to evidence-based treatment protocols. Industry-standard procedures include regular staff training and adherence to regulatory guidelines to ensure high-quality care.

Marketing & Sales: Marketing approaches often focus on building relationships with referral sources, such as primary care physicians and community organizations. Customer relationship practices emphasize the importance of trust and confidentiality in patient interactions. Value communication methods include outreach programs that educate the community about available services and treatment options, while sales processes may involve direct engagement with healthcare providers to facilitate referrals.

Service: Post-sale support practices include follow-up care and outpatient services to ensure continuity of treatment. Customer service standards emphasize empathy, respect, and responsiveness to patient needs, while value maintenance activities involve regular assessments and adjustments to treatment plans based on patient feedback and progress.

Support Activities

Infrastructure: Management systems in psychiatric hospitals include electronic health records (EHR) that facilitate patient data management and care coordination. Organizational structures typically consist of multidisciplinary teams that include psychiatrists, psychologists, social workers, and nursing staff, all working collaboratively to provide comprehensive care. Planning and control systems are essential for managing patient flow and resource allocation effectively.

Human Resource Management: Workforce requirements include a diverse range of professionals, such as psychiatrists, nurses, and therapists, with practices focusing on ongoing training in mental health care and crisis intervention. Development approaches may involve specialized training programs to enhance staff competencies in evidence-based practices and patient engagement strategies.

Technology Development: Key technologies include telehealth platforms that enable remote consultations and electronic health records for efficient patient management. Innovation practices focus on integrating new therapeutic modalities and treatment technologies to improve patient outcomes. Industry-standard systems often involve data analytics to monitor treatment effectiveness and patient satisfaction.

Procurement: Sourcing strategies involve establishing relationships with suppliers of medical equipment, pharmaceuticals, and therapeutic tools. Supplier relationship management is crucial for ensuring timely access to quality inputs, while purchasing practices emphasize compliance with healthcare regulations and standards.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through patient outcomes, readmission rates, and treatment adherence. Common efficiency measures include tracking patient flow and resource utilization to optimize service delivery. Industry benchmarks are established based on best practices in mental health care and patient satisfaction metrics.

Integration Efficiency: Coordination methods involve regular communication among healthcare providers, patients, and families to ensure alignment on treatment goals and progress. Communication systems often include integrated care pathways that facilitate information sharing and collaborative decision-making among multidisciplinary teams.

Resource Utilization: Resource management practices focus on optimizing staff allocation and minimizing wait times for patient services. Optimization approaches may involve implementing lean management techniques to streamline operations and enhance patient care delivery, adhering to industry standards for efficiency and effectiveness.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include high-quality patient care, effective treatment protocols, and strong relationships with referral sources. Critical success factors involve maintaining a skilled workforce and ensuring compliance with healthcare regulations to deliver safe and effective services.

Competitive Position: Sources of competitive advantage include the ability to provide specialized care and a comprehensive range of services tailored to individual patient needs. Industry positioning is influenced by the hospital's reputation, quality of care, and accessibility, impacting market dynamics and patient choice.

Challenges & Opportunities: Current industry challenges include addressing the growing demand for mental health services, managing funding constraints, and navigating regulatory changes. Future trends may involve increased integration of technology in treatment and a focus on community-based care models, presenting opportunities for hospitals to expand their services and improve patient access.

In-Depth Marketing Analysis

A detailed overview of the Psychiatric and Substance Abuse Hospitals industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Large

Description: This industry encompasses facilities that provide specialized inpatient care for individuals suffering from mental health disorders and substance abuse issues. Operations include comprehensive diagnostic assessments, medical treatment, and therapeutic interventions tailored to the needs of each patient, often requiring extended stays.

Market Stage: Mature. The industry is characterized by established treatment protocols, a growing emphasis on integrated care models, and a steady demand for mental health services driven by increasing awareness and advocacy for mental health issues.

Geographic Distribution: National. Facilities are distributed across urban and rural areas, with a higher concentration in metropolitan regions where access to mental health services is critical, often located near community resources and support networks.

Characteristics

  • Inpatient Care Focus: Facilities primarily operate as inpatient centers, offering 24/7 medical supervision and therapeutic support, which necessitates a structured environment conducive to recovery and stabilization.
  • Multidisciplinary Treatment Teams: Daily operations involve coordinated efforts among psychiatrists, psychologists, social workers, and nursing staff to deliver comprehensive care plans tailored to individual patient needs.
  • Extended Treatment Duration: Patients often require longer hospital stays, sometimes exceeding 30 days, to effectively address complex mental health and substance use disorders, which impacts staffing and resource allocation.
  • Nutritional and Support Services: Hospitals provide essential food services that meet dietary needs, alongside recreational and social activities designed to promote patient engagement and recovery.

Market Structure

Market Concentration: Moderately Concentrated. The market features a mix of large hospital systems operating multiple facilities and smaller, community-based hospitals, with regional variations in service availability and specialization.

Segments

  • Inpatient Psychiatric Services: This segment focuses on providing intensive psychiatric care, including crisis stabilization and long-term treatment, often involving specialized units for different age groups or disorders.
  • Substance Abuse Treatment Programs: Facilities offer targeted programs for substance use disorders, including detoxification services and rehabilitation, often integrated with mental health services to address co-occurring disorders.
  • Outpatient Services: Many hospitals provide follow-up outpatient care, including therapy and medication management, to support patients transitioning from inpatient treatment back into the community.

Distribution Channels

  • Referral Networks: Hospitals often rely on referral systems from primary care providers and mental health professionals to ensure a steady flow of patients needing specialized care.
  • Insurance Partnerships: Collaboration with insurance companies is crucial for patient access, as many facilities operate under managed care agreements that dictate service delivery and reimbursement.

Success Factors

  • Accreditation and Compliance: Maintaining accreditation from recognized bodies such as The Joint Commission is essential for operational legitimacy and funding, influencing patient trust and institutional reputation.
  • Integrated Care Models: Successful facilities implement integrated care approaches that combine medical, psychological, and social services, enhancing patient outcomes and operational efficiency.
  • Community Engagement: Active involvement in community outreach and education initiatives helps to reduce stigma and increase awareness of available services, driving patient referrals and engagement.

Demand Analysis

  • Buyer Behavior

    Types: Primary buyers include individuals seeking treatment, families, and referral sources such as healthcare providers and social services. Each group has distinct needs and expectations regarding care quality and accessibility.

    Preferences: Patients and families prioritize facilities with strong reputations for quality care, comprehensive treatment options, and supportive environments that foster recovery.
  • Seasonality

    Level: Moderate
    Demand for services can fluctuate based on seasonal factors, with increased admissions often observed during winter months due to seasonal affective disorders and holiday-related stress.

Demand Drivers

  • Rising Mental Health Awareness: Increased public awareness and advocacy for mental health issues have led to higher demand for specialized treatment services, prompting facilities to expand their offerings.
  • Substance Abuse Epidemic: The ongoing opioid crisis and rising rates of substance abuse disorders have created urgent demand for effective treatment programs, influencing operational capacity and service design.
  • Insurance Coverage Expansion: Changes in healthcare policy and insurance coverage for mental health services have improved access, resulting in higher patient volumes and operational adjustments.

Competitive Landscape

  • Competition

    Level: High
    The industry experiences intense competition among facilities, driven by the need for specialized services, quality of care, and patient outcomes, with many hospitals vying for limited funding and patient referrals.

Entry Barriers

  • Regulatory Compliance: New entrants face significant challenges in meeting stringent regulatory requirements for licensing, accreditation, and operational standards, which can be costly and time-consuming.
  • Capital Investment: Establishing a psychiatric hospital requires substantial capital investment in infrastructure, staffing, and technology, creating a barrier for smaller operators.
  • Established Relationships: Existing facilities often have well-established relationships with referral sources and community organizations, making it difficult for new entrants to gain market share.

Business Models

  • Integrated Care Facilities: These hospitals provide a full spectrum of services, from inpatient care to outpatient follow-up, allowing for continuity of care and better patient outcomes.
  • Specialized Treatment Centers: Facilities focusing on specific populations or disorders, such as adolescent mental health or dual diagnosis, cater to niche markets with tailored services.

Operating Environment

  • Regulatory

    Level: High
    Operations are subject to rigorous state and federal regulations, including licensing requirements, patient safety standards, and mental health parity laws that govern service delivery.
  • Technology

    Level: Moderate
    Facilities utilize electronic health records (EHR) systems for patient management, telehealth services for remote consultations, and data analytics for treatment outcomes monitoring.
  • Capital

    Level: High
    Significant capital is required for facility construction, staff recruitment, and ongoing operational expenses, with funding often sourced from government grants, private investments, and insurance reimbursements.

Questions & Answers

  • What is the SBA NAICS 622210 revenue limit?

    Businesses with an annual revenue under $41,500,000 are considered small businesses by SBA.

  • How many active businesses operate in NAICS Code 622210?

    There are 12,748 verified business locations operating primarily in this industry.

  • What was the total revenue for NAICS Code 622210?

    In 2017 the total revenue for Psychiatric and Substance Abuse Hospitals was $22,449,387,000

  • What was the annual payroll for NAICS Code 622210?

    In 2017 the annual payroll for Psychiatric and Substance Abuse Hospitals was $11,444,781,000

  • How many people work in NAICS Code 622210?

    The number of reported paid employees is 232,484.