4.2.4.1Vertical

Acute Psychiatric Hospitals

Inpatient hospitals providing short-term acute psychiatric stabilization.

Market snapshot

These figures describe Inpatient Psychiatric Services (4.2.4), the segment that Acute Psychiatric Hospitals sits within. They are not figures for Acute Psychiatric Hospitals on its own.

Market size
~$29B
Growth
~4.1%CAGR (2017–22, nominal)
Companies
~419 firms
Firms by employee count

3.4% of firms have fewer than 20 employees: 14 micro-businesses, below most mandates.

The investable universe403 firms with 20+ employees
20–99
389%
100–499
17042%
500+
19548%

The bed-constrained end of behavioral health, covering acute psychiatric hospitals, crisis-stabilization units, and inpatient programs for severe mental illness and acute substance use. Demand structurally exceeds the supply of psychiatric beds, so scaled operators (Acadia, UHS's behavioral division) keep adding capacity; per-diem reimbursement is favorable, but quality oversight and staffing are persistent challenges.

NAICS 622210. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Per-diem inpatient psychiatric reimbursement

Key economics

Revenue per firm
$69,418,282
Revenue per employee
$122,574
Employees per firm
584.7
Recurring revenue
Moderate

acuity-driven admissions

EBITDA margin
Healthier than general hospitals for scaled operators
Capex intensity
High

Characteristics

  • Balanced cost base: payroll is 49% of revenue, leaving room to scale margin without cutting staff
  • Deep strategic-buyer pool: 195 firms exceed 500 employees, so a scaled asset has trade buyers
  • Demand structurally exceeds psychiatric-bed supply.
  • Dominated by scaled operators (Acadia, UHS).
  • Bed additions and facility expansion ongoing.

NAICS 622210. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Scaled psychiatric operators
  • Hospital & behavioral platforms
  • PE-backed acquirers

What’s driving deals

  • Bed-shortage-driven expansion.
  • Consolidation around scaled operators.
  • Acuity-driven demand and reimbursement.

Find Acute Psychiatric Hospitals acquisition targets

Search Acquisera’s index for companies classified under Acute Psychiatric Hospitals (4.2.4.1) and build a targeted deal pipeline.

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