JLL Healthcare Capital Markets
Behavioral health perspectives
December 2019
The demand for behavioral treatment is growing – and inpatient admissions along with it
Growth in U.S. Inpatient Admissions, 2013 and 2017
Source: Health Care Cost Institute
Key points:
- Inpatient behavioral treatment is the exception to the trend of lower acute care hospital utilization. Growth in behavioral care has been fueled by the need to provide sustained residential treatment of mental health disorders and for substance abuse outside the emergency room or general acute care facility.
- Inpatient behavioral admissions grew 9% from 2013 to 2017 while all inpatient admissions decreased 5%. There are 59 million Americans with diagnosed mental health or addiction disorders that may be treated on an inpatient or outpatient basis.
- Capital markets provide healthy support to inpatient behavioral providers, including two large active public company operators, one of which is the largest operator with 186 U.S. inpatient behavioral hospitals, and the other is a pure play behavioral operator with nearly 10,000 acute psychiatric beds in the U.S. Many hospitals and private operators are building new freestanding facilities to meet the growth in demand for services, in contrast to the trend of fewer acute care beds per capita.
EY Parthenon. 2017 Behavioral Health: Market Trends and Deal Insights
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