The pandemic left many feeling isolated, and people are now talking more openly about mental health than ever. The result? A major spike in demand for behavioral health care. It’s a good sign of changing attitudes — but it’s also straining the healthcare system to its limits.

It’s estimated that 23% of U.S. adults live with a mental illness. And yet, 49% of the U.S. population lives in designated mental health professional shortage areas – and the strain on care access is only set to worsen. In the next five years, the industry could even face up to a 45% staffing shortfall across behavioral health disciplines. Emergency departments (EDs) are overwhelmed, support staff burnt out, and behavioral health specialists are spread thin. Together, it’s putting significant pressure on healthcare leaders to find solutions — and fast.

Proactive workforce planning, data-driven talent intelligence, and a willingness to leverage alternative workforce models are a strategic way to confidently close these worsening gaps before it’s too late.

The State of Behavioral Health Today

By 2032, the behavioral health market is expected to hit $132 billion and healthcare organizations will need to significantly ramp up hiring across multiple roles to meet the increasing demand for services. Looking across specialties, the impact is clear – psychiatrists are facing a potential shortage of 55-73%, addiction counselors 40-60%, mental health counselors 45-55%, and psychologists 40-51% according to Health Resources and Service Administration data. In rural areas, these metrics are likely higher, as specialized licensed professionals tend to flock to cities.

Behind the numbers, healthcare professionals are stuck in a very real pressure cooker. Due to the shortage, frontline workers are often the ones bearing the burden of responding to behavioral health crises — and it’s leading to heavier workloads, higher stress, and growing burnout risks. Lower income patients are also increasingly seeking care at the emergency room, considering how much easier it is to access compared to the high time-commitment and cost that comes with specialized behavioral health care.

Many hospitals and health systems are integrating psychologists, counselors, and social workers into ED teams to address the need, but the task is immense. Physicians often have a limited scope of practice and it’s difficult for providers to cross specialties given strict licensing and training requirements. Another complicating factor is the rise of patients seeking addiction treatment. Emergency departments are seeing an influx of patients who had been self-medicating to manage their mental health and now need dual care. But addiction counselors are still a relatively newly recognized medical specialty, and the number of qualified providers is still small.

Administrative and support teams are feeling the pressure too. With more behavioral health visits, their plates are fuller than ever with registration, billing, and coordination work. And in a healthcare landscape that’s getting more complex, contingent workers are stepping in as a flexible, effective solution.

Opportunities for Growth

While staffing shortages are ongoing, there are still signs of growth across key disciplines, including occupational therapy (OT), emergency departments, and physical therapy (PT).

Occupational Therapy

Day-to-day support is a key piece of holistic behavioral health treatment, making providers under the occupational therapy umbrella a critical resource in meeting the need for mental health services. As  behavioral health becomes less stigmatized, the demand for daily living support is rising — and new growth opportunities are emerging. By 2034, OT assistants and aides are expected to see an 18% jump in staffing and both mental health counselors and substance abuse counselors a 17% increase.

Emergency Departments

From 2024 to 2034, nurse practitioners are expected to see a 35% staff increase and physician assistants a 20% increase. The underlying trend behind these metrics is the shifting role of emergency departments as ground zero for behavioral health care.  With more mental health admissions, hospitals face growing pressure to improve patient engagement and therapeutic results. In response, hospital leadership are being more strategic in how they develop ED talent pipelines and leaning on contingent talent to fill gaps.

Physical Therapy

Behavioral health and physical health are often interconnected, which is why physical therapy is an essential piece of the puzzle. Physical rehabilitation from serious injury or surgery can be frustrating, painful, and isolating – all of which can weigh heavily on patients’ mental health. The population is also aging, and as the average life span increases, chronic conditions and injury become more common. Effective and accessible physical therapy is a game changer. The potential for growth is there with employment for home health aides set to increase by 17% by 2034 – much faster than average – as well as health services managers (13%), and PT assistants and aides (22%) according to the Bureau of Labor Statistics.

The Need for Data and Talent Intelligence

Organizations can’t solve what they can’t see. This makes strong visibility into the trends driving the workforce critical for informed decision-making. That begins with data-driven talent intelligence.  By studying local labor trends and specialty needs, healthcare leaders can identify the biggest gaps in behavioral health staffing. They can then allocate resources strategically to address the most urgent shortages. This approach helps improve patient care and support frontline staff. These kinds of insights are also key in helping organizations predict future market shifts and adapt recruitment, retention, and training strategies to get ahead of hurdles like potential burnout or new spikes in demand before they even happen.

Discover how data and analytics are transforming contingent workforce management when you download our white paper.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.