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 […]

Private Equity Owns 6.2% of Mental Health, 7.1% of Addiction Treatment Facilities

New research reveals how much private equity is in control of the behavioral health sector. In short, it’s less than dealmaking trends in the last several years may suggest. “Cumulatively, private equity-owned mental health practices constituted 6.2% of all mental health facilities (652 of 10,324) and 7.1% of all SUD facilities (1,152 of 16,174) nationally, […]

Comvest-backed Your Behavioral Health Acquires Teen-Focused Insight Treatment Programs

Your Behavioral Health (YBH) announced it acquired teen mental health and substance use disorder (SUD) treatment provider Insight Treatment Programs. The deal expanded private equity firm-backed YBH’s total footprint to over two dozen facilities across Southern California. “An established provider in the mental health care space, Insight is an excellent fit that expands Your Behavioral […]

Optum-Backed Refresh Mental Health Acquires CARE Counseling

Optum-owned Refresh Mental Health has acquired fast-growing outpatient mental health provider CARE Counseling, according to several sources close to the matter. The deal marks the second Optum-affiliated outpatient mental health acquisition in the last few years. In 2022, Optum acquired what was ostensibly the second-largest outpatient mental health company: Jacksonville Beach, Florida-based Refresh Mental Health. […]

Acadia Executes 3 New Acquisitions, Fueling 2024 Growth Strategy

Behavioral health operator Acadia Healthcare (Nasdaq: ACHC) is executing its strategic M&A plan for 2024 with the announcement of three new acquisitions.  Franklin, Tennessee-based Acadia acquired three comprehensive treatment centers (CTCs) in North Carolina, bringing its number of CTC locations in the state to 10. The treatment centers combine behavioral therapy and medications for opioid […]

How Federal Probe Into Private Equity’s Health Care Role Could Impact Behavioral Health Deals

Federal agencies may be cracking down on private equity investment in health care, which could have implications for behavioral health dealmaking in the future. In early March, the Federal Trade Commission, the Department of Justice’s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services launched a new investigation into private equity and […]

UpHealth Sells Cloudbreak Health for $180M, Accelerates Focus on Addiction Treatment

UpHealth Inc. (OTCMKT: UPHL) is one step closer to becoming a dedicated behavioral health company with the sale of a technology asset for $180 million. On March 15, the Delray Beach, Florida-based company completed the sale of its medical translation entity, Cloudbreak Health, to Chicago-based private equity firm GTCR LLC. Cloudbreak is headquartered in Columbus, […]