Charted: Mental health market surges
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U.S. spending on behavioral health topped $280 billion at the start of this decade, with substance abuse treatment exceeding treatment for mental health conditions by nearly 6 to 1, per an analysis by Bourne Partners.
Why it matters: The findings help quantify the scope of mental health and opioid crises even before the worst of the pandemic, while acknowledging there's still a large undiagnosed population.
What they found: Spending on substance abuse treatment in 2020 went to providers, including specialty substance abuse centers, psychiatric inpatient hospitals and office-based care, as well as prescription drugs, Bourne said.
- Spending on behavioral health had a compounded annual growth rate of 4.6% from 2009 to 2020.
- Because substance use disorders, or SUDs, can coexist with other mental health issues, providers are branching out and adding services like detox and residential care to lengthen the time they can service a patient.
- Self-insured employers and health plans are warming up to home-based SUD care, which was previously viewed as not medically necessary.
- There's also a push to reach specialty populations, like SUD treatments for neurodivergent populations.
What's next: Bourne sees the potential for an increase in M&A activity in the behavioral health space next year.
- There's also more interest in using artificial intelligence for purposes like treatment preapprovals, and to use AI-powered chatbots to help clinicians respond to patients in real time.
