Depression is most definitely a reason in an of itself for inpatient or outpatient/partial hospitalization. I have seen all levels od depression in either type of program, including the symptoms you describe being in both programs. However treatment of any kind is ideal just as long as he/she gets the help they need by getting to either one, and from past experience this can be the hardest part, getting there. If symptoms are severe, there can be issues with admitting that there is a need for help, or are deserving of the help, or that he/she feels that there is no hope of a program helping. This can be difficult to overcome. Sometimes it can be a matter of pointing out that since what doing is not working, perhaps it is time to try something else and a program is there to help, but definitely with encouragement, he/she can get into a mindset that they can benefit to try to feel better and taking your word for it that there is hope, and is worthwhile. So that he/she will hopefully enter a helpful program, no matter whether it be inpatient or outpatient/partial program.