Over the past several decades, inpatient psychiatrric facilities (IPFs) have faced numerous challenges and pressures. IPFs have suffered from shrinking government funding in this often-overlooked subsector of healthcare, as well as generally inferior reimbursement as compared to medical/surgical service lines. However, the COVID-19 pandemic has impacted the sector in both positive and negative ways. Healthcare Appraisers is observing market participants, including non-profit/for-profit operators and financial buyers, investing within the sector with multiple avenues for growth.
While IPF bed supply has declined significantly over time, demand for IPF beds has materially increased. Mental health spending has increased from $147 billion in 2009 to an estimated $238 billion in 2020. Read more.
