623220 - Residential Mental Health and Substance Abuse Facilities

Introduction

Navigating the health care and social assistance landscape often means understanding specific industry classifications. One crucial category within this realm is NAICS code 623220 - Residential Mental Health and Substance Abuse Facilities. This classification is vital for businesses and organizations providing residential care combined with mental health or substance abuse treatment services. Whether you're a contractor, entrepreneur, or healthcare professional, knowing about NAICS 623220 can help identify opportunities, compliance requirements, and industry trends.

What is NAICS Code 623220?

NAICS code 623220 covers establishments primarily engaged in providing residential care together with medical, psychiatric, or psychological services for individuals suffering from mental health disorders or substance abuse problems. These facilities offer structured treatment and rehabilitation environments designed to support recovery and wellness.

In essence, this classification is dedicated to facilities that offer a combination of residential living and intensive therapy, treatment, and support services for people facing mental health challenges or addiction.

Sector Overview: Health Care and Social Assistance

NAICS 623220 falls under the broader Health Care and Social Assistance sector. This sector plays a significant role in delivering essential services that improve community health outcomes. Residential Mental Health and Substance Abuse Facilities provide critical services that enable individuals to recover in safe, supervised environments, often after hospital discharge or as an alternative to inpatient hospitalization.

Typical Business Activities under NAICS 623220

Businesses classified under NAICS 623220 primarily focus on:

• Residential mental health treatment centers
• Substance abuse rehabilitation centers
• Psychiatric residential treatment facilities
• Halfway houses for mental health or substance abuse patients
• Convalescent homes for psychiatric patients

These organizations combine housing, therapy, and medical or psychiatric supervision to support patient rehabilitation.

Size Standard for NAICS 623220

For federal contracting and business classification purposes, a business is considered small under NAICS code 623220 if it has annual receipts of $19 million or less. This size standard is essential for eligibility in small business programs, including government contracting opportunities.

Detailed NAICS 623220 Code Information

Code Details	Description
Alcoholism rehabilitation facilities (except licensed hospitals), residential	Facilities providing residential treatment for alcoholism without hospital licensing
Convalescent homes or hospitals for psychiatric patients	Long-term care facilities for psychiatric patient recovery
Drug addiction rehabilitation facilities (except licensed hospitals), residential	Facilities offering residential drug addiction treatment without hospital licensing
Halfway houses for patients with mental health illnesses	Transitional homes for individuals recovering from mental illness
Halfway houses, substance abuse (e.g., alcoholism, drug addiction)	Transitional homes focused on substance abuse recovery
Homes for emotionally disturbed adults or children	Residential care for emotionally disturbed individuals
Homes, psychiatric convalescent	Facilities providing convalescent care post-psychiatric hospitalization
Hospitals, psychiatric convalescent	Convalescent psychiatric hospitals
Mental health facilities, residential	Facilities offering residential mental health care
Mental health halfway houses	Transitional housing for mental health recovery
Psychiatric convalescent homes or hospitals	Homes or hospitals focused on psychiatric convalescent care
Residential group homes for the emotionally disturbed	Group homes for individuals with emotional disturbances
Substance abuse (i.e., alcoholism, drug addiction) halfway houses	Transitional housing for substance abuse recovery
Substance abuse facilities, residential	Residential care facilities specializing in substance abuse treatment

Examples of Businesses under NAICS 623220

• Residential Mental Health Treatment Centers: Facilities offering in-depth psychiatric counseling, medication management, and supportive living.
• Substance Abuse Rehabilitation Centers: Residential programs focused on detox, counseling, relapse prevention, and life skills.
• Psychiatric Residential Treatment Facilities: Specialized homes providing long-term care and therapy for severe mental illnesses.

FAQs About NAICS 623220

What types of services are included in NAICS code 623220?

Services include residential care combined with medical, psychiatric, or psychological treatment for individuals with mental health disorders or substance abuse problems.

Who uses NAICS code 623220?

Healthcare providers, rehab centers, halfway houses, and government contractors focused on mental health and substance abuse residential treatment typically use this code.

What is the size standard for a small business under this NAICS code?

The Small Business Administration defines the size standard as $19 million or less in average annual receipts.

Can hospitals be classified under NAICS 623220?

Only psychiatric convalescent hospitals focused on residential care fall under this code, but licensed general hospitals providing inpatient treatment do not.

How can this NAICS code help businesses?

It helps organizations identify contracting opportunities, comply with industry regulations, and market their specialized residential treatment services accurately.

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Understanding NAICS code 623220 is crucial for businesses and organizations involved in residential mental health and substance abuse treatment. This classification highlights the important role these facilities play in healthcare and social assistance, offering structured environments for effective patient rehabilitation. Whether seeking business development opportunities or researching industry sectors, leveraging this knowledge ensures your organization stays aligned with sector standards and market demands.