Industry Analysis & Industry Trends
The rising awareness and acceptance of mental health and substance abuse illnesses has contributed to steady revenue growth. Over the next five years, demand for mental health and substance abuse treatment is forecast to increase in line with population growth and improvement in the social stigma surrounding 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... purchase to read more
Industry Report - Industry Investment Chapter
This industry has a low level of capital intensity and is relatively labour intensive. IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.06 in capital investment. Capital investment is mainly in facility equipment and technology. Over the past five years, capital intensity remained virtually unchanged; in 2010, for every $1.00 spent on wages, industry operators spent about $0.06 in capital investment.
Accounting for about 48.1% of total revenue, wages make up the single largest operating expense for industry operators. A high staff-to-resident ratio is required in substance abuse facilities because some residents require a high level of care. Furthermore, psychotic patients or drug-induced patients may require close observation... purchase to read more