Outpatient Mental Health and Substance Abuse Centers — Business Survival Rate

An estimated 75% of outpatient mental health and substance abuse centers businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 5.5%.

75%
5-Year Survival Rate
+2.3%
Net Growth Rate
26,098
Total Firms
1,770
Annual Firm Deaths

Is Outpatient Mental Health and Substance Abuse Centers a Good Business to Start?

With a 75% five-year survival rate, outpatient mental health and substance abuse centers has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 5.5% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)10.1%
Exit Rate (closures)5.5%

Net positive: more businesses opening than closing (+4.6 pp spread).

Job Creation & Destruction

13.0%
Job Creation Rate
10.7%
Job Destruction Rate
+2.3%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 1,367,530 workers across 26,098 firms.

Want to know how much outpatient mental health and substance abuse centers businesses actually make?

See full revenue benchmarks for Outpatient Mental Health and Substance Abuse Centers →

Frequently Asked Questions

What percentage of outpatient mental health and substance abuse centers businesses fail?
Approximately 25% of outpatient mental health and substance abuse centers businesses fail within their first 5 years. The annual closure rate is 5.5%, with 1,770 firms closing permanently in 2023.
Is the outpatient mental health and substance abuse centers industry growing or shrinking?
The outpatient mental health and substance abuse centers industry is currently growing with a net job creation rate of +2.3% per year. New businesses are entering at 10.1% while 5.5% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.