Is Venture Capital Ready for Brick-and-Mortar Behavioral Health Investment? 

Private equity has long dominated in-person behavioral health investment. But some venture capital investors, who entered the behavioral health market by backing digital providers, have now moved into hybrid business models that include both telehealth and in-person elements. For example, GV, formerly Google Ventures, recently invested in hybrid outpatient provider Guidelight. Despite the higher working […]

The Rise of Earnouts and Seller Notes in Behavioral Health M&A

While behavioral health deals have been relatively slow since the post-pandemic boom, many buyers and sellers are now evaluating different structures for deals that could include earnouts and seller notes. “There absolutely has been a slowdown in M&A activity really since 2022. And there continues to be a real gap in valuation expectations between buyers […]

Addiction Provider T&R Recovery Group Acquires Origins Behavioral Healthcare

Addiction and mental health treatment provider T&R Recovery Group has acquired Origins Behavioral Healthcare, adding four locations to its portfolio.  The nonprofit Hanley Foundation, dedicated to substance use disorder (SUD) care, announced it was divesting Origins less than five months after acquiring the treatment provider. “The addition of Origins Recovery represents a significant milestone in […]

Maternal Mental Health Provider Seven Starling Lands $12.6M 

Digital mental health startup Seven Starling has raised $12.6 million in funding and is seeking an additional $1.7 million to complete the round, according to an SEC filing. New York City-based Seven Starling provides virtual mental health services to women on the parenthood journey. Its offerings include therapy, peer support and medication as needed. The […]

Venture Capital Accounts for $350M in Behavioral Health Dealmaking in Q1

The behavioral health industry appears to have found a new, historically elevated floor for deal flow in the year’s first quarter. Since the beginning of 2023, quarterly deal totals tracked by the M&A firm Mertz Taggart have been at about 40 transactions. The first quarter of 2024 brought much of the same, with a few […]

Behavioral Health Provider Resources for Human Development Joins Inperium

Nonprofit network Inperium plans to acquire behavioral health provider Resources for Human Development. The combined entity is expected to generate roughly $800 million annually. As part of the deal, which is expected to close in the third quarter of 2024, Inperium will invest in RHD’s services and the pair will combine their administrative operations. Before […]

3 Substance Treatment Centers Merge to Form Tulip Hill Healthcare, Unveil Plans for Growth

Three southeastern substance use disorder (SUD) treatment providers have merged to form Tulip Hill Healthcare. The merger consolidates Tennessee-based Tulip Hill Recovery with two Kentucky-based SUD treatment centers, Louisville Addiction Center and Lexington Addiction Center. The move positions Tulip Hill for future growth, with Tulip Hill executives planning to open three new facilities in the […]

New State Laws Could Complicate Behavioral Health Dealmaking

State governments are casting an increasingly critical eye on health care dealmaking, likely making it harder for the behavioral health industry to transact deals. The impact of these laws will be uneven across the U.S. as some state legislatures take up or resist these laws. Today, about a dozen states have some form of disclosure […]

UHS Credits Tough Negotiating Stance with Payers for Favorable Rates

Playing hardball with payer rates has paid off for behavioral health behemoth Universal Health Services. Despite the challenging supply-demand dynamics during the pandemic, Universal Health Services demonstrated resilience and adaptability, reporting strong payer rates in its behavioral health business. “We just had more optionality in negotiating with payers being able to get our payers to […]

Backpack Health Raises $14M for AI-Backed Youth Mental Health Platform

Pediatric mental health provider Backpack Health, formerly Youme Healthcare, has landed $14 million in Series A funding. Backpack’s services include a digital self-care app, virtual therapy sessions for children and teens, psychiatry and medication management and virtual resources for parents. The provider has developed an app that uses artificial intelligence to help monitor a client’s […]