Teen and young adult behavioral health provider Newport Healthcare has announced the acquisition of pediatric mental health provider PrairieCare. The terms of the deal were not disclosed.
PrairieCare brings to the deal nine locations in Minnesota. Its services include mental health screenings, clinic services, an inpatient psychiatric hospital, intensive outpatient programs (IOPs), partial hospitalization programs (PHPs) and residential services.
This acquisition comes at a time when the demand for youth and adolescent mental health services is skyrocketing. In fact, about half of the teens in the U.S. have experienced a mental health disorder at some point in their lives, according to the Office of Population Health Affairs (OASH).
“Individuals and families are struggling to find appropriate, available mental health care. PrairieCare’s outstanding reputation and clinical sophistication complement our existing services,” Joe Procopio, Newport’s CEO, said in a statement. “Through a combination of development and acquisition, we are expanding access to treatment with a full continuum of care, creating more opportunities to positively impact countless lives. The acquisition of PrairieCare will solidify Newport’s growing presence in Minnesota and create a hub for youth psychiatric services in the Midwest.”
Founded in 2008, Newport Healthcare treats patients ages 12 to 18 who are living with depression, anxiety, eating disorders, trauma and substance abuse. It offers both residential and outpatient treatment programs.
The provider is now working in 15 metro areas across 11 states. Like PraireCare, Newport also has operations in Minnesota.
In 2021, private equity company Onex Partners agreed to acquire the majority stake in Newport Healthcare. This deal gave Onex a 60% ownership in the company. At the time of the announcement, PE Hub reported that Newport Healthcare was valued at approximately $1.3 billion.
This isn’t the only acquisition this year focusing on the youth and young adult population.
Over the summer, behavioral health provider Mindpath announced the acquisition of Acacia Counseling and Wellness, a virtual and outpatient behavioral health provider specializing in college students.
Additionally, private equity firm Vistria Group made an investment in Sandstone Care, a provider that focuses on behavioral health services for young people.
New funding from the federal government could make this an ideal time for investors and providers to take bets on youth behavioral health. In July, the Biden administration pledged nearly $300 million to expand mental health services in schools.
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