Mental health services M&A update

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Mental health services M&A update

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Growing crisis of mental health illnesses

Increasing prevalence of mental health disorders, rising awareness and acceptance about the issue, and increased support from state and federal level regulations, are expected to propel the demand for mental health services.

  • With an alarming increasing in the rates of mood disorders and suicide-related outcomes, mental health problems are becoming a growing concern for the American population.
  • Given the increasing prevalence of mental health disorders and the de-stigmatization of mental health treatment, the sector represents significant addressable market opportunity with room for ample growth.
    • The outpatient mental health market in the U.S. is estimated to reach $215 billion by 2025, growing at CAGR of approximately 14 percent.1

  • Untreated mental illness are estimated to cost up to $300 billion annually due to losses in productivity and associated costs due to absenteeism, employee turnover and increases in medical and disability expenses.2
  • COVID-19 has further elevated mental health issues and the number of people looking for help with anxiety and depression has skyrocketed.
    • In the first three quarters of 2020, 315,220 people took the anxiety screen, a 93 percent increase over 2019 and 534,784 people took the depression screen, a 62 percent increase over the last year.3

Rising incidence of mental health conditions during the pandemic.4

  • Several federal and state legislations, including the 2008 Mental Health Parity and Addiction Equity Act, Affordable Care Act, The Telemental Health Care Access Act of 2021, and the implementation of 988, are acting as growth catalysts to the industry.

Rising mental health crisis5

1 in 5

U.S. adults experience mental illness


adults with mental illness do not receive any treatment


adults report having serious thoughts of suicide


of youth had a major depressive disorder in 2021


of youth with major depression do not receive any mental health treatment

Services offered by specialty mental health treatment facilities6

Mental health use by the U.S. adults7

Type of care
Prescription medication13.1%13.8%


  1. LifeStance Health Group - Form S-1 (May 2021);
  2. National Alliance on Mental Illness (2020);
  3. Mental Health America: 2021 The State of Mental Health in America;
  4. Frost & Sullivan: Global Digital Health Solutions for Behavioral Health Management Growth Opportunities (July 2021);
  5. Mental Health America: 2022 The State of Mental Health in America;
  6. MACPAC: Report to Congress on Medicaid and CHIP (June 2021);
  7. SAMHSA: National Survey on Drug Use and Health (October 2021)

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Mental health services M&A update

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