The Behavioral Health market focuses on the treatment of substance abuse and mental ... hospitals, residential treatment
Behavioral Health A BSC Healthcare Services Sector Report The Behavioral Health market focuses on the treatment of substance abuse and mental illness. Participants in the industry include acute inpatient psychiatric hospitals, residential treatment facilities, and outpatient facilities.
BEHAVIORAL HEALTH The Behavioral Health market focuses on the treatment of substance abuse and mental illness. Participants in the industry include acute inpatient psychiatric hospitals, residential treatment facilities, and outpatient facilities.
Estimated CAGR of 4.3% for 2012 – 2020P
Opioid Use Disorder (OUD) diagnoses have increased 493% between 2010 and 2016
2017E Total Addressable Market ($ in billions)
Mental Health and Substance Abuse Centers $16.3
An estimated 44 million adults live with a mental illness
Psychiatric Hospitals $25.6
Mental Health and Substance Abuse Clinics $21.1 Total Addressable Market of $63.1 billion
On an average day in the U.S.:
Continued Rise in Opioid Addiction and Opioid-Related Overdoses
More than 650,000 opioid prescriptions are dispensed 3,900 people initiate nonmedical use of prescription opioids 580 people initiate heroin use 78 people die from an opioid-related overdose
$55 Billion in health and social costs related to prescription opioid abuse each year Source: HHS
Autism currently affects 3.5 million individuals in the U,S.
Growing Prevalence of Autism
1 in 68 children are diagnosed with autism, an increase of 144% since 2004 Over 350,000 children in the U.S. are diagnosed with autism annually 42 states have recently adopted insurance reform legislation to mandate coverage for autism services
$1 Trillion in annual autism-related costs in the U.S. by 2025
Source: Autism Speaks / UC Davis
BEHAVIORAL HEALTH
GROWTH DRIVERS
CARE SETTINGS
The Behavioral Health market focuses on the treatment of substance abuse and mental illness. Participants in the industry include acute inpatient psychiatric hospitals, residential treatment facilities, and outpatient facilities.
ACUTE
RESIDENTIAL
OUTPATIENT
(Inpatient)
(RTC, PHP)
(IOP)
Psychiatric hospitals High level of care in order to stabilize patients that are an immediate danger to themselves or others 24-hour observation Lengths of stay are typically 1-14 days
Non-hospital care setting designed to address overall medical, psychological, and social needs of patient Lengths of stay are typically 30-60 days Helps patient transition back into his or her respective community Receives more than 20 hours of therapy per week
Provides screening and assessment, medication management, and individual, group, and family therapy to patients Patients have a diagnosable mental disorder or substance abuse condition but are able to function at a level that enables them to remain at home Receives less than 20 hours of therapy per week
Prescription opioid abuse is becoming increasingly prevalent and will be a leading driver of growth in behavioral health services In 2014, more than 240 million prescriptions were written for opioids Four out of five new heroin users started out by misusing prescription opioids
An estimated 44 million adults live with a mental illness, but nearly 60% do not receive treatment in a given year As awareness of mental health continues to rise, a larger percentage of adults living with a mental illness will receive treatment
MARKET GROWTH
($ in billions)
$80.0 $60.0
CAGR: 4.3%
$50.4
$52.2
$54.8
2012
2013
2014
$65.0
$67.9
$58.3
$63.1
$70.5
$61.0
2015
2016
2017E
2018P
2019P
2020P
$40.0 $20.0 $0.0 Source: IBISWorld
BEHAVIORAL HEALTH
FFL partners, a private equity firm, acquired Autism Learning Partners, a provider of applied behavior analysis therapy for children and adults with autism spectrum disorders and developmental disabilities.
Meridian Behavioral Health, a leader in drug and alcohol addiction treatment, acquired New Beginning Minnesota, a provider of addiction treatment for more than 35 years.
EV: ~$270mm
EV: N/A
December 2017
October 2017
Lee Equity and FFL Partners, private equity firms, acquired Summit Behavioral Healthcare, an operator of addiction treatment centers in AZ, CA, GA, LA, MO, NV, PA, SC, TN, and TX.
The Halifax Group, a private equity firm, acquired Delphi Behavioral Health Group, an operator of toprated rehab facilities focused on assisting individuals suffering from substance addiction.
EV: N/A
EV: N/A
October 2017
October 2017
BSC REPRESNTED TRANSACTIONS
RECENT TRANSACTIONS
The Behavioral Health market focuses on the treatment of substance abuse and mental illness. Participants in the industry include acute inpatient psychiatric hospitals, residential treatment facilities, and outpatient facilities.
Includes transactions completed at previous firms
CONTACT
BSC Healthcare Services Team For Additional Information Please Contact the Following BSC Team Members: Stephen Scott Managing Director Office: 615.800.6233
[email protected]
Lance Bell Senior Vice President Office: 615.800.6108
[email protected] 