NAICS 623221Canadian industry · 6-digitlocal market

Residential facilities for persons with a mental health or substance use condition

SoftwareLong-Term Care & Senior Living Software 623

This Canadian industry comprises establishments primarily engaged in providing residential care and treatment for patients with substance use conditions. These establishments provide room, board, supervision, counselling and other social services. These establishments generally provide a wide range of social services in addition to counselling. — Statistics Canada, NAICS 2022A

Establishments · CanadaA: 382
Under 10 employeesA: 27%

Size and shape

How many businesses there are and how small they are. Fragmentation is the first thing an entrant — or anyone selling software into this industry — needs to know, and it is one of the few things that is actually measured.

Canadian establishments by number of employeesA

1–45013%

5–95214%

10–199826%

20–4911931%

50–99359%

100–199174%

200–49962%

500+51%

Of 382 Canadian establishments with employees, 27% have fewer than ten — weighted toward mid-sized establishments.

Where they areA

British Columbia9625%

Ontario9525%

Quebec9124%

Alberta4612%

Largest four provinces by establishment count. Establishments with employees only — sole operators with no payroll are not in this table, so in trades and personal services the true number of businesses is higher.

How many new establishments are still tradingA

Health Care and Social Assistance, US · opened 2020

84%

1 year

65.3%

3 years

52.6%

5 years

36.4%

10 years

opened 2015

Measured, not forecast: the share of US establishments opening in one year that were still active later. It counts good operators and bad ones together, which is exactly why it is the honest answer to “what are the odds”. It is for the whole sector rather than this market, and the ten-year figure comes from an older cohort because no younger one has reached ten years.

No US figure is shown. County Business Patterns is coded to the 2017 US edition of NAICS; this code either does not exist there, names a different industry, or is outside the programme's coverage (most of agriculture, rail, postal and public administration are). A figure is attached only where both the code and the title agree.

How businesses here compete

The structural profile of subsector 623, which every industry beneath it inherits. This is analyst judgment from how the subsector is organised — not research into this industry, and not a measurement.

local competitionhigh capitalUNVERIFIEDinherited from 623 Nursing and residential care facilities

Real estate, a licence and a labour problem together. Demographics guarantee demand; funding rates and staffing decide whether it is profitable.

Who sets the price: Government per-diem for funded beds; the operator for private-pay retirement living.
The software it runs on: Long-term-care clinical and resident management systems.

Market screens and studies

Market-entry records filed along this branch of the hierarchy. A record at or beneath this code is about this industry; one above it is about something wider that contains it.

Screened one level up. Nothing is filed at this exact code; the screen for 6232 Residential facilities for persons with an intellectual or developmental disability, a mental health or substance use condition covers it.

Operating businessScreenedfiled at 6232

Group Home & Supportive Living OperationStructure decides

binding constraint: growth quality

The pre-screen called this a genuine operator business, and the count agrees: 4,091 establishments, 2,511 of them with 10 to 49 staff — which is what a house or a small cluster of houses with round-the-clock shifts looks like. Unlike the retirement and long-term care homes screened at 623110, the ticket is not a purpose-built building; a group home is an ordinary house, often leased. And the funded rate is substantial. Ontario's Financial Accountability Office puts developmental-services supportive living at $2,262 million in 2023-24 for approximately 18,000 people — $123,826 per client [A]. The cut is what that money is growing into. The FAO projects spending rising 4.4% a year to $2,804 million by 2028-29 with no growth in the number of clients served: the whole increase is cost per placement [A]. Meanwhile 28,128 people were waiting for a placement, up from 18,152 in 2017-18 [A]. Demand that large beside volume that flat means the payer has decided not to buy more places, and an entrant's growth can only come from taking an existing placement from an incumbent agency — agencies that hold their funding through long-standing transfer-payment agreements and, being largely non-profit, have no reason to sell. Growth that is pure wage pass-through is not growth an operator keeps. This is not a clean kill. It is an Ontario finding; a full study would test the provinces that contract for-profit providers more freely, and the private-pay addiction and mental-health residences that share this code and were not examined.

NAICS 62324 vendors named10 sourced figuresOpen →

Software serving this industry

The vertical software markets filed along the same branch — who sells to these businesses and who they would have to displace — and then the generic categories every business buys whatever it does.

Sold across the wider branch

Vertical softwareScreenedfiled at 623 Nursing and residential care facilities

Long-Term Care & Senior Living SoftwareOne thing must be true

binding constraint: incumbent vulnerability

Incumbent PointClickCare

Unusually fragmented for healthcare software — the top ten vendors hold roughly a quarter of revenue — which normally reads as opportunity. It is not, for the reason established in the home care study: the leaders reached the buyer first and the buyer's margins are set by Medicaid and provincial funding rather than by willingness to pay. PointClickCare is also the strongest Canadian vertical-SaaS outcome in this research and worth studying as a model rather than a target.

NAICS 6234 vendors named5 sourced figuresOpen →

And what every business buys · 25 generic categories

Sold to every industry rather than this one, so they are filed against the software industry's own code. The same few vendors recur across most of them.

Who works here

The occupations employed in Health care and social assistance, most concentrated in it first. The share is measured against the whole sector, not this industry — the published cross-tabulation stops there.

Concentrated in this sectorA

Managers in health care One industry 98.6%

Nursing and allied health professionals One industry 95.1%

Technical occupations in dental health care One industry 89.9%

Therapy and assessment professionals One industry 89.5%

Dentists, optometrists and audiologists One industry 89%

Physicians and veterinarians One industry 88.5%

Assisting occupations in support of health services One industry 85.9%

Practitioners of natural healing One industry 83.4%

Technical occupations in therapy and assessment One industry 77.9%

Home care provider occupations One industry 72.1%

These jobs are mostly done here. An operator in this industry is competing for them against others in the same industry, not against the whole economy.

And the jobs every business has

Office administrative assistants - general, legal and medical Across the economy 22.1%

Administrative, property and payroll officers Across the economy 18.6%

Shoe repairers, shoemakers and upholsterers Across the economy 12.6%

Survey, statistical and data entry occupations Across the economy 9.3%

Administrative and financial supervisors Across the economy 7.1%

Building maintenance installers, servicers and repairers Across the economy 6.7%

Legislative and senior managers Across the economy 5.7%

Financial, insurance and related administrative support workers Across the economy 4.8%

Technical occupations in computer and information systems Across the economy 4.6%

Administrative services managers Across the economy 4.5%

Found across at least fourteen of the twenty sectors. In a small establishment several of these are usually one person, or an outside provider.

All 162 occupations →

Alongside this industry

This is the most specific level NAICS defines. The other industries under 62322 are its nearest neighbours.

Code	Industry	Establishments · CA	What is known
623222	Homes for persons with a psychiatric disability	665	screened at 6232