U.S. Outpatient Psychiatry Market Summary
The U.S. outpatient psychiatry market size was estimated at USD 15.88 billion in 2024 and is expected to reach USD 39.22 billion by 2033, growing at a CAGR of 10.63% from 2025 to 2033. This growth is driven by the increasing mental health (MH) treatment in the U.S. According to the Substance Abuse and Mental Health Services Administration (SAMHSA), an estimated 60.1 million adults in the U.S. received some form of MH treatment in 2024. This highlights the increasing demand for psychiatry services, which offer critical care, including diagnostic assessments, psychotherapy, and medication management, outside of hospital settings.
While providing flexible, accessible treatment, psychiatry allows patients to maintain their daily routines while receiving continuous MH support. The high patient volume reflects both increasing awareness of MH conditions and a shift toward community-based care, boosting the market as a rapidly expanding segment within the country’s healthcare landscape.
Increasing Behavioral Health Workforce Shortage:
A persistent shortage of MH professionals, especially psychiatrists, continues to constrain capacity in outpatient psychiatry. According to the “State of the Behavioral Health Workforce” article published in 2024, a report by the Health Resources & Services Administration (HRSA), more than a third of the U.S. population (approximately 122 million people as of August 2024) resides in a designated “MH Professional Shortage Area.” This shortage makes outpatient psychiatry more essential and scalable because it necessitates a greater reliance on telepsychiatry, collaborative care models, and other outpatient strategies to meet the widespread demand.
Investment & Fundings
Company / Investor
Example of Investment / Funding
Sutter Health (Public / State-supported)
In May 2025, Sutter Health received USD 23 million via California’s Proposition 1 bond funding to expand behavioral health (BH) infrastructure, including creating a new outpatient specialty BH clinic and expanding IOP services.
Amae Health
In December 2024, Amae Health, a company specializing in care for individuals with severe mental illnesses, secured a USD 6 million investment from Cedars-Sinai to support the expansion of its in-person MH clinics nationwide. This new funding strengthens the existing relationship between the two organizations. Cedars-Sinai first partnered with Amae Health more than two years ago, around the time the startup launched its inaugural outpatient facility in Los Angeles.
InStride Health.
In March 2024, InStride Health secured an oversubscribed USD 30 million Series B funding round to broaden the availability of its high-quality specialty care programs for children and adolescents dealing with anxiety and obsessive-compulsive disorder (OCD). The new investment will enable the company to scale its services and enhance access to evidence-based pediatric MH treatment.
Source: Secondary Sources & Grand View Research
Rising Medicare Coverage for Intensive Outpatient Programs (IOPs):
The rising expansion of Medicare coverage for Intensive Outpatient Programs (IOPs) fuels market growth, according to the Center for Health Care Strategies. In an article published in July 2024, the Centers for Medicare & Medicaid Services (CMS) updated its policy to cover IOP services under Medicare Part B, allowing a wider range of beneficiaries to access structured, high-frequency outpatient (OP) MH care. IOPs provide more intensive care than regular OP therapy but are less restrictive than inpatient hospitalization. They typically include multiple therapy sessions per week, medication management, and skills-building groups, all designed to help patients manage MH conditions while continuing with daily activities. Before this policy change, many older adults and Medicare beneficiaries had limited access to these structured OP programs, which could force them into either standard OP care (less intensive) or costly inpatient stays.
With Medicare now reimbursing IOPs at hospital OP departments, community MH centers, federally qualified centers, rural clinics, and opioid treatment programs, more patients can receive intensive psychiatric care without being hospitalized. This expands the patient base for OP psychiatry providers, increases service utilization, and drives overall market growth, especially among older adults who are more likely to require structured psychiatric support.
Key Aspects
Market Impact
CMS updated its policy in January 2024 to cover IOP services under Medicare Part B.
Increases access to structured, high-frequency OP care for older adults and Medicare beneficiaries.
IOPs provide multiple therapy sessions per week, medication management, and skills-building groups.
Expands the patient base and service utilization in OP psychiatry.
Reimbursed in hospital OP departments, community MH centers, federally qualified centers, rural clinics, and opioid treatment programs.
Encourages growth and expansion of outpatient facilities capable of delivering IOPs, creating new market opportunities.
Source: Center for Health Care Strategies, Grand View Research
Increasing Telehealth Adoption Boosts U.S. Outpatient Psychiatry:
Growing integration of Telehealth (TH) platforms is significantly accelerating the expansion of outpatient psychiatric services across the U.S. According to the American Medical Association article published in February 2024, in a national “secret‑shopper” study conducted between December 2022 and March 2023, researchers reached out to 1,938 OP mental‑health treatment facilities and received responses from 1,404 of them. Among the 1,221 facilities that were accepting new patients, approximately 980 (80%) reported offering TH services. Within these TH -offering facilities, the service mix was very robust: 97% provided counseling and therapy, 77% offered medication management, and 69% conducted remote diagnostic evaluations. When it came to TH modalities, 47% of facilities used video only, 5% offered audio-only, and another 47% provided both video and audio options.
The study also found a median wait time of 14 days (range, 4-75 days) for a first Telehealth (TH) appointment. It revealed important regional variations: for example, wait times in some states stretched to more than two months, while others offered appointments within under a week. These trends suggest that telepsychiatry is not just a temporary fix but a core part of the OP psychiatry model, enhancing access (especially in underserved or remote areas), improving flexibility, and enabling providers to scale their services to meet rising demand.
Effective Parity Rules Boost Access to U.S. Outpatient Psychiatry:
A significant growth lever for OP psychiatry in the U.S. is the consolidation of MH parity rules under the MHPAEA (Mental Health Parity and Addiction Equity Act). According to the CMS.gov article published in September 2024, the Departments of Labor, Health & Human Services, and the Treasury issued final rules that tighten protections around nonquantitative treatment limitations (NQTLs), such as prior authorizations, step therapy, and network restrictions. These rules state that insurance plans can no longer apply more restrictive non-numerical limits to MH/substance use disorder (MH/SUD) benefits than to comparable medical or surgical services.
Under the new regulations, plans are required to conduct comparative analyses to show that their policies for MH/SUD benefits are just as favorable (in design and in practice) as those for physical benefits. Insurers must also collect and evaluate outcomes data, such as claims denials, utilization rates, and reimbursement, to identify and correct disparities in how they limit access to MH services. For OP psychiatry specifically, this means fewer insurance-imposed barriers to care. With stricter parity enforcement, payers are less likely to restrict access to psychiatric services through burdensome prior authorization or overly narrow networks. These encourage psychiatrists to join in-network panels and help OP psychiatry clinics grow, since patients can access psychiatric care more easily and at lower personal cost.
Market Concentration & Characteristics
The market is fragmented, with numerous small players entering and launching innovative new products. The degree of innovation is high, and the level of partnership and collaboration activities is medium. The impact of regulations is moderate, and the service expansion of players is moderate.
The market has evolved from traditional in-office visits to technology-enabled, hybrid care platforms. Providers now combine telepsychiatry for virtual evaluations, therapy sessions, and medication management with fully equipped OP clinics that offer on-site psychiatric consultations, lab testing, and partial hospitalization or intensive OP programs (IOPs). Advances in digital tools, AI-driven symptom tracking, and integrated electronic health records (EHRs) enable psychiatrists to remotely monitor patient progress, adjust treatment plans in real-time, and coordinate care with therapists and primary care providers. In addition, specialized software platforms for OP psychiatry streamline scheduling, insurance billing, and patient follow-ups, enabling scalable models that deliver care in clinics, community centers, schools, workplaces, and even via home-based telepsychiatry, improving access and patient engagement.
The market players are increasingly forming strategic partnerships to broaden access and enhance service delivery. For example, in December 2024, D’Amore Healthcare joined the Kaiser Permanente network, enabling patients to receive in-network OP mental health and dual-diagnosis services. This collaboration expands the reach of high-quality psychiatric care, making it more accessible to patients who may face barriers in traveling to traditional clinics, and strengthens the capacity of OP providers to deliver comprehensive, coordinated care.
Regulations are a key factor in the market, shaping how care is delivered and ensuring patient safety. At the federal level, OP psychiatry providers must comply with HIPAA privacy and security requirements for patient information, including electronic communications used in telepsychiatry and digital platforms. Moreover, the Centers for Medicare & Medicaid Services (CMS) sets guidelines for reimbursement, coverage of OP psychiatric services, and standards for intensive OP programs (IOPs) and partial hospitalization programs (PHPs). Professional organizations, such as the American Psychiatric Association (APA), provide best-practice guidance on telepsychiatry, documentation, and prescribing practices. While these frameworks help standardize care and promote quality, they operate in conjunction with state-level licensing and MH regulations, which can vary and impact the operational policies of OP psychiatry clinics.
Market players utilize a strategy of service expansion to increase their service capabilities and promote the reach of their service offerings. For instance, in April 2024, Apalachee Center and Tallahassee Memorial HealthCare (TMH) opened the Live Oak Behavioral Health Center, a new OP facility. The clinic offers a full range of MH services, including psychiatric evaluations, medication management, therapy, intensive outpatient (IOP), and partial hospitalization (PHP) programs.
Service Insights
The routine outpatient visits segment dominated the market, accounting for a revenue share of 49.52% in 2024. The routine OP psychiatry segment, which encompasses standard psychiatric consultations, follow-ups, therapy, and medication management, remains a core component of the market. According to a Columbia University article published in May 2025, recent trends show a shift toward therapy-focused care, with the proportion of adults receiving only psychotherapy rising from 11.5% to 15.4% between 2018 and 2021, while reliance solely on psychiatric medications declined from 68% to 62%. This reflects growing patient preference for non-pharmacological interventions, longer-term engagement, and fewer therapy drop-outs. Moreover, according to an article published by Oxford University Press in February 2025, a national analysis of EHR between 2016 and 2024 revealed that patients with psychiatric conditions averaged six visits per patient, compared to four visits among primary-care MH patients, highlighting sustained and increasing utilization of routine OP psychiatric services.
The neurostimulation services segment is anticipated to grow at the fastest CAGR during the forecast period. Neurostimulation, particularly transcranial magnetic stimulation (TMS), is increasingly playing a central role in the market. In July 2024, Neuronetics received FDA clearance for its NeuroStar system as the first TMS treatment approved as a first-line adjunct for major depressive disorder in adolescents (ages 15-21). This expands the reach of TMS beyond adult treatment-resistant depression and opens OP neurostimulation to a younger demographic. On the business side, Neuronetics’ Q3 2024 results showed a rise in U.S. treatment session revenue compared to Q3 2023. Moreover, in June 2024, BrainsWay secured FDA label expansion for its Deep TMS device to treat late-life depression in patients aged up to 86, underscoring the growing adoption of neurostimulation across age groups. These developments reflect broader trends: increasing insurance coverage, growing clinician and patient acceptance of TMS, and a strengthening infrastructure of OP clinics offering neurostimulation, together pushing neurostimulation into the mainstream of psychiatric care.
Clinical Condition Insights
The mood disorders visits segment dominated the market, accounting for a revenue share of 24.01% in 2024. The mood disorders, particularly major depression, are a key component of U.S. outpatient psychiatry, driven by increasing depression incidence and technological advancement, which drives the growth of the market. According to a CDC article published in April 2025, between August 2021 and August 2023, 13.1% of people aged 12 and older reported symptoms consistent with depression in two weeks, and about 39.3% of those with depression received counseling or therapy during the past 12 months. Moreover, the report reveals that in 2023, 11.4% of U.S. adults (age 18+) took prescription medication for depression, with significant demographic variation in use. These figures underscore the growing burden of mood disorders and the strong role of OP psychiatry in providing both therapeutic and pharmacological treatment.
The substance use disorders segment is anticipated to grow at the fastest CAGR during the forecast period. The segment is attracting increased attention as treatment needs rise and evidence-based interventions expand beyond inpatient settings. According to a CDC article published in April 2024, “more than one in six Americans aged 12 or older reported experiencing a substance use disorder (SUD) in 2022.” Moreover, as per the BioMed Central Ltd article published in June 2025, a systematic review found that adult populations with SUD remain underserved: many continue to lack access to high-quality OP care, signaling a treatment gap that OP psychiatry practices are well-positioned to help fill. These trends underscore the growing relevance of OP psychiatry in offering integrated SUD services such as OP counseling, medication-assisted treatment (MAT), and telepsychiatry support to address unmet demand and reduce barriers to care.
Care Setting Insights
The private psychiatry practices services segment held the dominant revenue share of 34.38% in 2024. Private, office-based psychiatry practices in the U.S. are increasingly being reshaped by financial consolidation and investor interest. According to an American Medical Association article published in May 2024, a JAMA Psychiatry study found that 642 MH outpatient facilities (which include psychiatric practices) have been acquired by private equity firms through July 2023, with private equity ownership reaching more than 25% of facilities in certain states. Moreover, in May 2025, among the largest stand-alone OP platforms is LifeStance Health, which, as of Q1 2025, operates over 550 centers across 33 states, delivering both in-person and virtual psychiatry care. These trends signal a robust and evolving sector: private psychiatry practices are growing not just through the opening of new offices, but also through consolidation, which helps meet patient demand while increasing their operational and financial stability.
The public mental health facilities segment is expected to grow at the fastest CAGR during the forecast period. Public mental health facilities, including community MH centers (CMHCs) and Certified Community Behavioral Health Clinics (CCBHCs), play a crucial role in the U.S. outpatient psychiatry system by providing accessible, comprehensive care. According to the National Council for Mental Wellbeing’s in June 2024 , CCBHC Impact Report, these clinics now serve approximately 3 million people and cover around 40% of U.S. counties as of June 2024, highlighting their broad reach across both urban and rural areas. Moreover, as per the Center on Health Equity & Access article published in October 2024, 55.66% of the U.S. population lived within a Certified Community Behavioral Health Clinics (CCBHC) service area, and about 39.43% of counties were covered under this model, demonstrating significant expansion of OP psychiatric access for Medicaid beneficiaries, uninsured individuals, and other underserved populations. These facilities offer a full spectrum of OP psychiatric services, including therapy, medication management, crisis intervention, and substance-use treatment, ensuring that vulnerable populations receive timely and coordinated care.
Country Insights
The Southeast region dominated the market, accounting for a 24.47% revenue share in 2024, driven by both facility expansions and partnerships with academic institutions. In April 2024, Tallahassee Memorial HealthCare (TMH) and the Apalachee Center opened the Live Oak Behavioral Health Center in North Florida, serving not just Tallahassee but extending into South Georgia and Southeastern Alabama. The center offers a broad range of outpatient MH services, including psychiatry, psychotherapy, intensive outpatient (IOP), and partial hospitalization (PHP). It is staffed by a multidisciplinary team comprising psychiatrists, psychologists, nurse practitioners, and social workers.
“Apalachee and TMH have worked as close partners for many years, and one of our long-term goals has been to create an integrated BH center where we can provide a wide range of outpatient services in one location by our region’s most seasoned and talented clinicians. The new Live Oak Behavioral Health Center will serve as the central hub for outpatient BH in this region while also housing a new psychiatry residency program. We are excited to see this goal finally become a reality.”- Jay Reeve, Ph.D., president and CEO of Apalachee Center.
The west region is expected to witness the fastest growth over the forecast period. The increasing incidence of MH issues and rising investments and funding drive the market’s growth. For instance, in September 2024, the company announced a partnership with San Diego County to open a BH hub at its East Campus Medical Center. While this hub will include inpatient beds, it’s also designed to serve as a gateway to outpatient psychiatric care, helping to channel patients into ongoing outpatient treatment.
Key U.S. Outpatient Psychiatry Company Insights
The market is increasingly being driven by key providers that are expanding access to MH care through innovative and patient‑friendly approaches. For example, LifeStance Health has grown its network of outpatient psychiatry clinics across more than 30 states, offering services such as psychiatric evaluations, medication management, and therapy both in-person and via TH. This model enables patients, including those in rural or underserved areas, to receive comprehensive psychiatric care without the need for hospitalization, thereby improving accessibility and continuity of care.
Key U.S. Outpatient Psychiatry Companies:
LifeStance Health
Top Tier Psychiatry
Stanford Health Care
Genoa Healthcare
Johns Hopkins Outpatient Psychiatry Clinics
Houston Methodist
Allegheny Health Network
Boston Children’s Hospital
UNC School of Medicine
UCSF Health
The University of Texas Southwestern Medical Center
Sheppard Pratt
Boston Medical Center
The Menninger Clinic
Overlake Medical Center & Clinics
Recent Developments
In May 2025, Nystrom & Associates reached an agreement to purchase 25 clinic locations operated by Ellie Mental Health, marking a significant expansion move for the company.
“The combined company will have 84 locations across five states and approximately 1,400 clinicians providing 1.4 million MH appointments annually,” Shannon Beaudin Klein, chief marketing officer for Nystrom & Associates, told Behavioral Health Business.
In April 2025, Ridgeview Mental Health Services and Allina Health began a partnership to provide outpatient psychiatry and day-treatment/intensive outpatient services at Two Twelve Medical Center in Chaska, Minnesota.
In January 2025, Oceans Healthcare acquired Haven Behavioral Healthcare, Inc., a Nashville‑based provider of specialty outpatient (and inpatient) psychiatric services across five states. The deal expands Oceans’ network into seven additional BH outpatient locations and broadens its geographic coverage.
“Our organizations share an almost 40-year legacy of high-quality care and commitment to our patients. Together we will be able to accomplish much more than we could independently,” said Oceans Healthcare CEO Stuart Archer. Oceans has consistently sought opportunities that would expand our ability to provide access to care for at-risk populations in underserved communities. Haven has had a similar mission, and we are honored to welcome them to our Oceans family.”
In February 2025, Family Care Center opened a new outpatient MH clinic in New Braunfels, Texas, offering psychiatric evaluations, medication management, TMS treatment, and therapy services, marking a significant expansion in the region.
U.S. Outpatient Psychiatry Market Report Scope
Report Attribute
Details
Market size value in 2025
USD 17.48 billion
Revenue forecast in 2033
USD 39.22 billion
Growth rate
CAGR of 10.63% from 2025 to 2033
Actual data
2021 – 2024
Forecast data
2025 – 2033
Quantitative units
Revenue in USD million/billion and CAGR from 2025 to 2033
Report coverage
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered
Service, care setting, clinical condition, region
Country scope
U.S.
Key companies profiled
LifeStance Health; Top Tier Psychiatry; Stanford Health Care; Genoa Healthcare; Johns Hopkins Outpatient Psychiatry Clinics; Houston Methodist; Allegheny Health Network; Boston Children’s Hospital; UNC School of Medicine; UCSF Health; The University of Texas Southwestern Medical Center; Sheppard Pratt; Boston Medical Center; The Menninger Clinic; Overlake Medical Center & Clinics
Customization scope
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
Take advantage of customized purchase options tailored to meet your exact research needs. Explore purchase options
U.S. Outpatient Psychiatry Market Report Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. Outpatient Psychiatry market report based on service type, care setting, clinical condition, and region:
Service Outlook (Revenue, USD Billion, 2021 – 2033)
Care Setting Outlook (Revenue, USD Billion, 2021 – 2033)
Hospital-Affiliated Outpatient Clinics
Private Psychiatry Practices
Public Mental Health Facilities
Telepsychiatry
Others
Clinical Condition Outlook (Revenue, USD Billion, 2021 – 2033)
Region Outlook (Revenue, USD Billion, 2021 – 2033)
West
Southeast
Southwest
Midwest
Northeast
Frequently Asked Questions About This Report
b. The U.S. outpatient psychiatry market size was valued at USD 15.88 billion in 2024 and is expected to reach USD 17.48 billion in 2025.
b. The U.S. outpatient psychiatry market is expected to grow at a CAGR of 10.63% from 2025 to 2033 to reach USD 39.22 billion by 2033.
b. The routine outpatient visits segment dominated the market, accounting for a revenue share of 49.52% in 2024. The routine OP psychiatry segment, which encompasses standard psychiatric consultations, follow-ups, therapy, and medication management, remains a core component of the market.
b. Key players in the market include LifeStance Health, Top Tier Psychiatry, Stanford Health Care, Genoa Healthcare, Johns Hopkins Outpatient Psychiatry Clinics, Houston Methodist, Allegheny Health Network, Boston Children’s Hospital, UNC School of Medicine, UCSF Health, The University of Texas Southwestern Medical Center, Sheppard Pratt, Boston Medical Center, The Menninger Clinic, Overlake Medical Center & Clinics.
b. The market growth is driven by the increasing mental health (MH) treatment and the rising expansion of Medicare coverage for Intensive Outpatient Programs (IOPs) in the U.S. In addition, growing integration of Telehealth (TH) platforms is significantly accelerating the expansion of outpatient psychiatric services across the U.S.