Behavioral & Psychiatric Hospitals
Freestanding inpatient psychiatric and behavioral health hospitals providing acute and sub-acute psychiatric stabilization, detox, and residential treatment programs.
Market snapshot
These figures describe Specialty Hospitals (4.1.5), the segment that Behavioral & Psychiatric Hospitals sits within. They are not figures for Behavioral & Psychiatric Hospitals on its own.
- Market size
- ~$58B
- Growth
- ~5.7%CAGR (2017–22, nominal)
- Companies
- ~327 firms
12.2% of firms have fewer than 20 employees: 40 micro-businesses, below most mandates.
- 20–99
- 3412%
- 100–499
- 7928%
- 500+
- 17461%
Freestanding inpatient facilities focused on a single service line, whether long-term acute care (LTAC), inpatient rehabilitation, or surgical hospitals, run by scaled operators (Encompass Health, Select Medical) outside the general acute-care structure. Demand rides the aging population and the shift of defined care into focused, efficient settings, and the post-acute and rehab niches have drawn operator and PE consolidation. Reimbursement policy, especially for LTACs and rehab, heavily shapes the economics.
NAICS 622310. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
Business model & economics
Revenue model
Specialty and post-acute reimbursement
Key economics
- Revenue per firm
- $178,603,388
- Revenue per employee
- $210,957
- Employees per firm
- 794.6
- Recurring revenue
- Moderate
- EBITDA margin
- Healthier than general hospitals for scaled operators
- Capex intensity
- High
episodic but steady specialty demand
Characteristics
- Balanced cost base: payroll is 36% of revenue, leaving room to scale margin without cutting staff
- Deep strategic-buyer pool: 174 firms exceed 500 employees, so a scaled asset has trade buyers
- Focused service lines: LTAC, rehab, surgical.
- Aging population and care-setting shifts drive demand.
- Reimbursement policy heavily shapes economics.
NAICS 622310. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
M&A deal context
Who’s acquiring
- Post-acute & rehab operators
- PE-backed specialty-hospital platforms
- Health-system partners
What’s driving deals
- Operator and PE consolidation of post-acute/rehab.
- Aging-population and care-setting-shift demand.
- Reimbursement-policy-driven positioning.
Find Behavioral & Psychiatric Hospitals acquisition targets
Search Acquisera’s index for companies classified under Behavioral & Psychiatric Hospitals (4.1.5.1) and build a targeted deal pipeline.
Search companies