Transactions: NHI Announces $62.3M Behavioral Investment; ABA, MAT Software Deals

NHI’s $62.3M behavioral health investment

National Health Investors, Inc. (NYSE: NHI), a health care real estate investment trust (REIT), has added a $62.3 million specialty behavioral health investment to its portfolio. That includes a $40.3 investment for the purchase of Brookhaven Hospital, a 64-bed s behavioral hospital in Tulsa, Oklahoma.

The hospital will be leased to Charlotte, North Carolina-based Vizion Health under a 15-year maturity agreement, with two 5-year renewal options and an initial lease rate of 8.5% plus annual fixed escalators. NHI is also committing $2 million for capital improvements over the next two years for the hospital, which will be added to the lease basis as the expenditures are funded.

Additionally, NHI is providing a $20 million corporate loan to Vizion to finance its acquisition of the assets and operations of Brookhaven NeuroNetwork, which includes the operations of Brookhaven Hospital.

Also part of the Brookhaven NeuroNetwork purchase is Community NeuroRehab, a network of community-based residential rehabilitation centers in Iowa and Oklahoma that provide care to individuals with traumatic brain injuries (TBIs). The amortizing loan has a 5-year maturity and carries an interest rate of 8.5%.

Brookhaven Hospital is the third specialty behavioral health facility in the NHI portfolio.

“NHI has actively been pursuing real estate acquisitions in the behavioral health industry for several years,” Michelle Kelly, NHI’s senior vice president of investments, told Behavioral Health Business in an email. “Brookhaven focuses on TBI patients, which we believe is an under-served market with a severe lack of capacity. More importantly, we know the Vizion management team and became comfortable with their plans to grow the Brookhaven business.”

CentralReach acquires fellow ABA software provider

CentralReach, a developer of software and technology services for applied behavioral analysis (ABA) providers, has acquired Behaviorsoft, a technology solution for small ABA practices specifically.

Terms of the deal were not announced.

Headquartered in Fort Lauderdale, Florida, CentralReach supplies ABA therapy providers with electronic medical record (EMR) software, practice management tools and clinical solutions. ABA is considered to be a gold standard of care for individuals with autism spectrum disorder (ASD).

Meanwhile, Miami-based Behaviorsoft specializes in end-to-end, practice management and clinical management resources for small and midsize ABA practices. As part of the deal, Behaviorsoft will operate as an independent division of CentralReach.

CentralReach is financially backed by the private equity firm Insight Venture Partners.

SUD treatment software providers join forces

Netalytics has purchased SMART Management. Both companies provide software for the substance use disorder (SUD) treatment industry.

Terms of the deal were not disclosed.

Both the Greer, South Carolina-based Netalytics and the Providence, Rhode Island-based SMART specialize in developing electronic health records (EHR) and practice management tools for SUD treatment providers, particularly those offering medication-assisted treatment (MAT) for individuals struggling with opioid use disorder (OUD).

Minneapolis-based middle market investment firm Northborne Partners acted as the exclusive banking advisor to SMART.

Netalytics is a portfolio company of Chicago-based Prairie Capital.