Rehab& Detox Analysis - Massachusetts

Goals

To understand the market for substance abuse in Massachusetts. To aid in this understanding, you will need information and insights on the competitive landscape of businesses operating in the industry, the market size of the industry in Massachusetts and neighboring states, trends in admissions to determine which areas will bring in more leads. Additionally, you would like to know the rate of private insurance in neighboring states.

Early Findings

  • For the most part, admissions due to substance use and abuse have been oscillated between early 100,000s and late 90,000s in the State of Massachusetts. In 2008, this figure stood at 101,695 before growing to 102,288 in 2010 and subsequent reduction to 98,576 in 2011. The years following saw the number increase, peaking at 102,946 in 2014 after which the number reduced for two consecutive years (2015 and 2016) before settling at 98,944 admissions in 2017.
  • In the Central Region, total admissions for substance abuse was 11,103 in 2008, 10,623 in 2012, and 12,439 in 2017. In the Greater Boston Region, total admissions for substance abuse was 20,401 in 2008, 18,498 in 2012, and 16,722 in 2017.
  • In the Metro West Region, total admissions for substance abuse was 12,983 in 2008, 14,185 in 2012, and 10,823 in 2017. In the Northeast Region, total admissions for substance abuse was 18,444 in 2008, 18,319 in 2012, and 17,308 in 2017.
  • In the Southeast region, total admissions for substance abuse was 22,785 in 2008, 25,346 in 2012, and 24,809 in 2017. In the Western Region, total admissions for substance abuse was 15,979 in 2008, 12,601 in 2012, and 16,843 in 2017.
  • Judging based on the number of admissions for substance abuse, the Southeast Region represents the biggest opportunity not just by the numbers but based on the fact that the number of admissions is on the uptrend. The Southeast region is followed by the Northeast region, the Western Region, and then the Greater Boston Region. It's worth noting that of these three regions, the Western Region shows the biggest jump in admissions between 2012 and 2017; the other two regions show a decline in admissions due to substance abuse.
  • According to IBISWorld, the market size of mental health and substance abuse clinics in Massachusetts in 2018 was $665 million and the industry experienced an average growth rate of 2.6% between 2013 and 2018. The same report also notes that government insurance (67.2%) accounts for a bulk of the revenue in the industry.
  • There were 347 businesses from 110 operators operating in this industry in 2018. The number of operators in the industry is expected to grow at an annualized rate of 2.5%.
  • According to the same report by IBISWorld, "Similar to the national industry, the Mental Health and Substance Abuse Clinics industry in Massachusetts has a low level of market share concentration." This means that the industry is fragmented. That said, the five players with the largest market share in the "mental health & substance abuse clinics in Massachusetts industry include Bay Cove Human Services Inc., Phoenix House, Communities for People Inc., The Brookline Center for Community Mental Health and Beth Israel Deaconess Medical Center."

Summary of Early Findings

In the first hour of preliminary research, we have provided the market size of the substance abuse clinics industry (including mental health clinics), substance abuse admissions data for the six regions in the State and how that has change in the past 10 years, the five largest players in the industry, as well as how fragmented the industry is. Our preliminary research shows that data on private insurance per zip code or city may not be readily available in the public domain. This figure may, however, exists per state. Additionally, kindly note that the latest substance admissions data available is for 2017 as published by the State Government. Also, we have provided a screenshot of the IBISWorld source as it typically defaults to the IBISWorld homepage. The website link to the IBISWorld source is included in the attached screenshot.

Proposed next steps:

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