NAICS 622210 Quarterly Industry Report
Psychiatric and Substance Abuse Hospitals
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 622210Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for Psychiatric and Substance Abuse Hospitals (NAICS 622210) draws on data from the U.S. Census Bureau[6], SAMHSA[7], CMS[9], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, behavioral health analysts, and healthcare investors with current market data. Additional data is drawn from Bureau of Labor Statistics[10].. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the psychiatric and substance abuse hospitals industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
Psychiatric and Substance Abuse Hospitals (NAICS 622210) encompasses establishments known and licensed as psychiatric and substance abuse hospitals primarily engaged in providing diagnostic, medical treatment, and monitoring services for inpatients who suffer from mental illness or substance abuse disorders per the U.S. Census Bureau[5]. These facilities maintain organized medical staff including psychiatrists, psychologists, and social workers to provide acute psychiatric stabilization, detoxification, and structured treatment programs.
Industry revenue reached $22.4 billion with $11.4 billion in annual payroll per Census Bureau[6] economic survey data. Acadia Healthcare operates as one of the largest behavioral health hospital systems with over 260 facilities. Universal Health Services, Springstone (acquired by Lifepoint Health), and Haven Behavioral Healthcare maintain additional multi-state psychiatric hospital networks. Demand continues growing with 23.4 percent of U.S. adults experiencing mental illness per SAMHSA[7] national survey data.
Per the SBA Table of Size Standards[8], the size standard is $47 million in average annual receipts. 42 CFR Part 2 imposes additional confidentiality protections on substance use disorder patient records beyond standard HIPAA requirements. SAMHSA oversees opioid treatment program certification under 42 CFR Part 8. Joint Commission behavioral health accreditation standards, including 14 improve substance use disorder elements effective July 2020, require readiness-to-change assessment, transition planning, and proper drug testing procedures. CMS Conditions of Participation mandate 24-hour medical supervision, suicide prevention protocols, and organized medical staff with peer review. Staffing shortages in psychiatric nursing and addiction medicine continue to constrain facility capacity and drive wage inflation.
What's Included in This Industry
- Acute psychiatric inpatient stabilization and treatment
- Substance abuse detoxification and withdrawal management
- Structured inpatient addiction treatment programs
- Crisis intervention and involuntary hold management
- Electroconvulsive therapy (ECT) and neuromodulation
- Child and adolescent psychiatric inpatient units
- Geriatric psychiatric assessment and treatment programs
- Dual diagnosis treatment for co-occurring disorders
- Discharge planning and aftercare coordination services
- 42 CFR Part 2 compliance and confidentiality management
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Hospitals | 622 |
| Industry Group | Psychiatric and Substance Abuse Hospitals | 6222 |
| NAICS Industry | Psychiatric and Substance Abuse Hospitals | 62221 |
| National Industry | Psychiatric and Substance Abuse Hospitals | 622210 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 621420 | Outpatient Mental Health and Substance Abuse Centers | Outpatient Mental Health and Substance Abuse Centers provide step-down care for patients discharged from psychiatric hospitals, with outpatient programs continuing treatment through intensive outpatient and partial hospitalization models following inpatient stabilization |
| 623220 | Residential Mental Health and Substance Abuse Facilities | Residential Mental Health and Substance Abuse Facilities offer community-based residential treatment without acute medical services, serving as intermediate care settings between psychiatric hospital discharge and full community reintegration |
| 622110 | General Medical and Surgical Hospitals | General Medical and Surgical Hospitals operate psychiatric units and transfer patients to specialty psychiatric hospitals when behavioral health needs exceed general hospital capacity, with medical clearance protocols governing patient transitions between settings |
| 621330 | Offices of Mental Health Practitioners (except Physicians) | Offices of Mental Health Practitioners provide individual and group therapy that continues after psychiatric hospital discharge, with community-based practitioners serving as long-term treatment providers following acute inpatient stabilization episodes |
| 621112 | Offices of Physicians, Mental Health Specialists | Offices of Physicians, Mental Health Specialists prescribe and manage psychiatric medications for patients discharged from hospitals, with outpatient psychiatrist visits maintaining medication regimens initiated during inpatient treatment stays |
| 624190 | Other Individual and Family Services | Other Individual and Family Services deliver social support programs including housing assistance, case management, and peer support that complement clinical treatment for psychiatric hospital patients transitioning back to community living |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 8.1% | 64 |
| 2 | California | 6.1% | 48 |
| 3 | New York | 5.9% | 47 |
| 4 | Louisiana | 4.9% | 39 |
| 5 | Florida | 4.8% | 38 |
| 6 | Pennsylvania | 4.5% | 36 |
| 7 | Massachusetts | 4.4% | 35 |
| 8 | Ohio | 4.4% | 35 |
| 9 | Wisconsin | 4.0% | 32 |
| 10 | Indiana | 4.0% | 32 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
32
Total SBA Loans
$48.6M
Total Loan Volume
$1.5M
Average Loan Size
14 yrs
Average Loan Term
10.06%
Average Interest Rate
1,016
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], Psychiatric and Substance Abuse Hospitals (NAICS 622210) has a size standard of $47 million in average annual receipts for federal contracting purposes. SBA lending programs[11] support facility acquisition, treatment program expansion, and capital improvement for qualifying psychiatric hospital operators. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Bank Michigan | 8 | $40.0M | $5.0M |
| 2 | The Huntington National Bank | 16 | $5.8M | $364K |
| 3 | CDC Small Business Finance Corp. | 8 | $2.8M | $350K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for psychiatric hospitals?
NAICS 622210 covers psychiatric and substance abuse hospitals providing inpatient diagnosis, treatment, and monitoring for mental illness and substance abuse disorders per the U.S. Census Bureau[5].
How large is the psychiatric hospital industry?
What is the SBA size standard for psychiatric hospitals?
The SBA size standard[8] is $47 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
What is 42 CFR Part 2?
42 CFR Part 2 imposes federal confidentiality protections on substance use disorder patient records beyond standard HIPAA requirements per SAMHSA[14] regulatory guidance, restricting disclosure without patient consent even when HIPAA would otherwise permit information sharing.
Who are the largest psychiatric hospital operators?
Acadia Healthcare operates over 260 facilities as one of the largest behavioral health systems per industry tracking data, with Universal Health Services, Springstone (Lifepoint Health), and Haven Behavioral Healthcare maintaining additional multi-state networks.
What accreditation standards apply to psychiatric hospitals?
Joint Commission behavioral health accreditation includes 14 improve substance use disorder standards effective July 2020 per Joint Commission regulatory guidance, covering readiness-to-change assessment, transition planning, and drug testing procedures alongside core patient safety requirements.
What are opioid treatment program requirements?
SAMHSA[14] oversees opioid treatment program certification under 42 CFR Part 8, requiring federal accreditation and certification for facilities providing medication-assisted treatment with opioid medications including methadone and buprenorphine.
What staffing challenges affect psychiatric hospitals?
Staffing shortages in psychiatric nursing and addiction medicine constrain facility capacity and drive wage inflation per Bureau of Labor Statistics[15] healthcare workforce data, with RN vacancy rates of 15 to 20 percent reported across behavioral health facilities.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SAMHSA samhsa.gov
- [8]SBA Table of Size Standards sba.gov
- [9]CMS cms.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA lending programs sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]SAMHSA samhsa.gov
- [15]Bureau of Labor Statistics bls.gov
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