Analysis
NAICS 623220 is the 2022 national industry for residential mental health and substance abuse facilities, part of 62322 (Residential Mental Health and Substance Abuse Facilities). Census lists 14 example activities under it in the official index.
County Business Patterns counts 8,575 US establishments in this code in 2023, employing 223,988 people at an average annual payroll of $48,375 per employee (16th percentile of national industries). 26% of the establishments have fewer than five employees, which is close to the national mix.
Its index entries, the activities Census uses to assign businesses to this code, include alcoholism rehabilitation facilities (except licensed…, convalescent homes or hospitals for psychiatric patients, drug addiction rehabilitation facilities (except licensed… and halfway houses for patients with mental health illnesses, among 14 in all.
Census lists 4 related activities that belong elsewhere, most often in 621420, 623210, 622210 and 623990. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
For example, providing treatment of mental health and substance abuse illnesses on an exclusively outpatient basis are classified in 621420 (Outpatient Mental Health and Substance Abuse Centers) instead.
Between 2018 and 2023 the number of establishments grew 6% and employment rose 4%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
Official definition
This industry comprises establishments primarily engaged in providing residential care and treatment for patients with mental health and substance abuse illnesses. These establishments provide room, board, supervision, and counseling services. Although medical services may be available at these establishments, they are incidental to the counseling, mental rehabilitation, and support services offered. These establishments generally provide a wide range of social services in addition to counseling.
Illustrative Examples:
Alcoholism or drug addiction rehabilitation facilities (except licensed hospitals) Psychiatric convalescent homes or hospitals Mental health halfway houses Residential group homes for the emotionally disturbed
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Providing treatment of mental health and substance abuse illnesses on an exclusively outpatient basis | 621420 Outpatient Mental Health and Substance Abuse Centers |
| Providing residential care for persons with intellectual and developmental disabilities | 623210 Residential Intellectual and Developmental Disability Facilities |
| Establishments known and licensed as hospitals primarily engaged in providing inpatient treatment of mental health and substance abuse illnesses with an emphasis on medical treatment and monitoring | 622210 Psychiatric and Substance Abuse Hospitals |
| Operating halfway group homes for delinquents and ex-offenders | 623990 Other Residential Care Facilities |
Index entries (14)
- Alcoholism rehabilitation facilities (except licensed hospitals), residential
- Convalescent homes or hospitals for psychiatric patients
- Drug addiction rehabilitation facilities (except licensed hospitals), residential
- Halfway houses for patients with mental health illnesses
- Halfway houses, substance abuse (e.g., alcoholism, drug addiction)
- Homes for emotionally disturbed adults or children
- Homes, psychiatric convalescent
- Hospitals, psychiatric convalescent
- Mental health facilities, residential
- Mental health halfway houses
- Psychiatric convalescent homes or hospitals
- Residential group homes for the emotionally disturbed
- Substance abuse (i.e., alcoholism, drug addiction) halfway houses
- Substance abuse facilities, residential