Market Size: Behavioral and Mental Health Assessments

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Behavioral and Mental Health Assessments TAM

The total addressable market (TAM) for the mental and behavioral health assessments industry in the U.S. for the year 2019 is estimated to be $9.03 billion.

RESEARCH METHODOLOGY

We commenced the research to determine the total addressable market (TAM) for the mental and behavioral health assessments industry in the U.S. by understanding the differences and similarities between behavioral health and mental health. The US Centers for Disease Control and Prevention (CDC) defines mental health as including our emotional, psychological, and social states, and how these mental states affect how we think, feel, and act. These states are also responsible for helping to determine how a person is able to handle and manage stress, relate with others, and make healthy choices in life. However, the US Substance Abuse and Mental Health Services Administration (SAMHSA) defines behavioral health as an umbrella term representing substance abuse as well as mental health issues. The organization describes itself as a behavioral health agency. Hence, it is assumed that behavioral health is an umbrella term for mental health issues combined with substance abuse. Therefore, after understanding the differences and similarities between the two, we focused on addressing mental health and substance abuse.

We then focused on searching through credible databases for relevant data related to the total addressable market (TAM) for the mental and behavioral health assessments industry in the U.S. We came across a 2017 report titled "Key Substance Use and Mental Health Indicators in the United States: Results from the 2017 National Survey on Drug Use and Health" that was prepared by Substance Abuse and Mental Health Services Administration (SAMHSA) and the U.S. Department of Health and Human Services (HHS). The report provided insightful data based on the 2017 survey that detailed the size of the population of US citizens affected by behavioral and mental health issues. The survey was carried out among respondents aged 12 years or older. The figures provided by this report are assumed as representing the entire population of the US because mental and behavioral health issues are not relevant for the population category aged below 12 years. The data set provides granular population data for substance abuse (including alcohol, tobacco, and illicit drugs) and three categories of mental health issues. Based on the mental health and behavioral health definitions detailed in the report, we also made an assumption that the total population obtained by summing up the different populations across various categories in the report represents the total population in the US who require a mental health assessment.

CALCULATIONS and findings

The figures and calculations are as given below:

  • People with substance use disorders in the US in 2016: 19.7 million
  • People with mental illness in the US in 2016: 46.6 million
  • Adolescents who had a major depressive episode in the US in 2016: 3.2 million
  • Young adults who had a major depressive episode in the US in 2016: 4.4 million

The total number of people who have mental and behavioral health issues in the US = a sum total of the above categories = (19.7+46.6+3.2+4.4) million = 73.9 million.

In an article published by Forbes journalist, Nina Stoller, describing the rising mental health care cost in America, the journalist reported that the cost for one session with a mental health practitioner in the US is $75 to $150 per one 45-minute session. Therefore, in order to obtain the cost per session that we will use in determining the total addressable markets, we calculate the average costs of the two pricing models provided in the article.

Average cost = ($75 +$150)/ 2 = $112.5

It is assumed the mental health assessment of an individual can be done in one session because the assessment usually involves a test that primarily includes questionnaires. Now, if 73.9 million people have mental health issues in the country and the cost per one session is $112.5, the total revenue share of mental health assessment in the country will be given by multiplying the two figures.

739000000 x $112.5 = $83137500000 = $8313.75 million

According to the Bureau of Labor Statistics, the median annual pay of Substance Abuse, Behavioral Disorder, and Mental Health Counselors was $43,300 in 2017 and $44,630 in 2018. From there, we calculated the annual growth rate using a CAGR calculator.

  • Median annual pay in 2016- $41070
  • Median annual pay in 2018- $44630
  • Number of years between these two figures- 2 years
  • Compound annual growth rate calculated using a CAGR calculator- 4.24%

Now using this CAGR, we made further calculations to establish the revenue shares in the industry for 2018 and 2019.:

  • Total revenue share of mental health assessment in the country for the year 2017 was calculated to be $8313.75 million
  • The annual growth rate of the salary of mental health practitioners — 4.24%

Therefore, the total revenue share of mental health assessment in the country for the year 2018= 2017 revenue x (100 +4.24)% = $8313.75 x 104.24/100 = $8666.253

Total revenue share of mental health assessment in the country for the year, 2019= 2018 revenue x (100 +4.24)% = $8666.253 x 104.24/100 = $9033.70

Hence, the TAM for the behavioral and mental health assessment industry in the US for the year 2019 is $9033.70 million.

Sources
Sources

Quotes
  • "Mental health is an important part of overall health and well-being. Mental health includes our emotional, psychological, and social well-being. It affects how we think, feel, and act. It also helps determine how we handle stress, relate to others, and make healthy choices. Mental health is important at every stage of life, from childhood and adolescence through adulthood."
Quotes
  • "mental health providers in many cities charge roughly $75 to $150 per 45-minute session, while rates in New York City can be upwards of $200. "
Quotes
  • "According to the American Psychological Association, psychologists may decide to perform a series of tests and assessments to help diagnosis your condition, as well as test your cognitive skills. Your doctor may begin the assessment process with questionnaires or checklists called “norm-referenced” tests , then move on to perform more formal tests, surveys, and interviews (APA) to help evaluate and measure your personality and aptitudes, as well as general mental or cognitive functioning behavior. The assessment process can help to identify specific symptoms you may be experiencing but are unable to explain or process."