Palladium Equity-Backed Health Connect America Makes 5th Acquisition in 18 Months

Private equity-backed behavioral health provider Health Connect America announced Wednesday the acquisition of First Home Care and North Star Counseling of Central Florida. Financial terms of the transaction were not disclosed.

This news marks Health Connect America’s fifth acquisition since PE firm Palladium Equity Partner bought the company in 2021. The purchases are set to bolster the provider’s foothold in two key markets: Virginia and Florida.

Richmond, Virginia-based First Home Care will bring to the deal its therapeutic foster care programs, which are located in four locations in Virginia. Before the transaction, Universal Health Services (UHS: NYSE) owned First Home Care.

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King of Prussia, Pennsylvania-based Universal Health Services is a publicly traded health care management company with over 400 acute care hospitals, behavioral health facilities and ambulatory centers in its network.

The acquisition of North Star Counseling of Central Florida is expected to add to Health Connect America’s presence in Florida as well. North Star’s services include mental health assessments, targeted case management, behavioral health rehabilitation services and more.

It currently has one location.

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“As we plan our future, we take seriously our responsibility that every individual who comes to Health Connect for assistance is unique,” Kristi Shain, president and CEO of Health Connect America, said in a statement. “This demands of everyone here to understand the importance of the personalized service we render in addressing our clients’ needs, as well as those of their family and other significant people in their lives.”

Health Connect America offers several behavioral health services for adults, children, teens and families. Its multi-state platform focuses on conduct disorder, substance abuse, autism disorder and emotional disturbance.

The provider serves more than 21,000 children and their families across the U.S., according to company statistics.

Since Palladium Equity Partners acquired Health Connect America, the former has purchased youth and family behavioral health providers Georgia HOPE, Pinnacle Family Services Holdings and Healing Educational Alternatives for Deserving Students.

“We are pleased to support Health Connect’s M&A growth strategy, particularly as the company continues to build its platform and extend valuable health care services, especially those that serve our nation’s most vulnerable communities,” Daniel Ilundain, a partner and co-head of flagship funds at Palladium, said in a statement.

Palladium Equity Partners is a minority-owned private equity buyout firm with $3 billion in assets that it is managing.

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