NAICS 6232 - Residential Intellectual and Developmental Disability, Mental Health, and Substance Abuse Facilities
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What is NAICS 6232
NAICS code 6232 covers establishments that provide residential care services to individuals with intellectual and developmental disabilities, mental health conditions, or substance abuse disorders. These facilities do not offer licensed hospital care but instead focus on supportive living environments designed to promote recovery, independence, and quality of life. Businesses operating in this sector include group homes, residential treatment centers, and supportive housing programs that tailor their services to meet the unique needs of vulnerable populations. Government agencies contract for these services to ensure access to appropriate care environments that support long-term rehabilitation and social integration, thereby reducing institutionalization and improving public health outcomes. The demand for residential care in this sector reflects ongoing commitments to community-based care and integrated health services.
Industry Classification for NAICS 6232
This industry group comprises establishments primarily engaged in providing residential care (but not licensed hospital care) to people with intellectual and developmental disabilities, mental illness, or substance abuse problems.
Breakdown for NAICS 6232
- Provides non-hospital residential care for individuals with disabilities and behavioral health conditions.
- Includes group homes, residential treatment centers, and supportive living arrangements.
- Excludes licensed hospital inpatient care facilities.
- Subject to federal and state health, safety, and licensing regulations.
- Supports government-funded health and social service programs.
- Facilities vary in size from small community homes to large treatment centers.
Included Activities for NAICS 6232
- Providing 24-hour residential supervision and support.
- Delivering mental health counseling and behavioral therapies.
- Administering substance abuse treatment and recovery programs.
- Coordinating individualized care plans and case management.
- Facilitating vocational training and life skills development.
- Monitoring medication and healthcare needs.
- Ensuring compliance with regulatory and accreditation standards.
- Engaging family and community support networks.
Business Types for NAICS 6232
- Group home operators specializing in developmental disabilities.
- Residential treatment centers for mental health patients.
- Substance abuse rehabilitation facilities with residential programs.
- Nonprofit organizations providing supportive housing services.
- Private healthcare providers offering behavioral health residential care.
- Government-operated community residential service programs.
Government Buyers for NAICS 6232
Federal, state, and local government agencies commonly procure services under NAICS 6232 to support public health, social services, and disability programs. Agencies such as the Department of Health and Human Services (HHS), Substance Abuse and Mental Health Services Administration (SAMHSA), state departments of health and human services, and veterans' affairs departments often contract with residential care providers. These agencies require these services to fulfill mandates related to mental health treatment, disability support, substance abuse rehabilitation, and community reintegration. Contracting with established providers ensures that government programs can deliver specialized care while complying with regulatory standards and expanding access to underserved populations.
Contract Types & Procurement for NAICS 6232
Contracts in this sector typically include firm-fixed-price, cost-reimbursement, and performance-based agreements. Procurement methods often involve competitive bidding, requests for proposals (RFPs), and sole-source contracting when specialized expertise or urgent service delivery is required. Contract values vary widely depending on the scope and duration of care, ranging from small-scale community programs valued under $500,000 to multi-year contracts exceeding several million dollars for larger residential treatment centers. Government contracts generally emphasize compliance with health and safety standards, quality assurance metrics, and reporting requirements to ensure effective service delivery and accountability.
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