Recovery Dynamics Secures PE Investment to Scale SUD Services

Private equity firm Optimal Investment Group has invested in substance use disorder (SUD) treatment provider Recovery Dynamics. Recovery Dynamics plans to use the strategic investment to grow its service lines and embark on an “ambitious expansion plan.” “Our investment reflects our confidence in the company’s vision and operational expertise, and we are committed to providing […]

PE-Backed PAX Health Acquires Harris Psychiatric Services

Private equity-backed behavioral health provider PAX Health has acquired Harris Psychiatry Services, a psychiatric care provider specializing in workers’ compensation. Financial terms of the deal were not disclosed. PAX Health was formed in March 2024 by merging three behavioral health companies: Behavioral Medicine Associates (BMA), Workers Compensation Psychological Network (WCPN) and Reservoir Health. The company […]

BrightSpring Sells IDD Business to Sevita for $835M

Health care provider BrightSpring (Nasdaq: BTSG) is divesting its behavioral health business, which includes care for people with intellectual and developmental disabilities (IDD). Sevita, another home and community-based care provider, paid $835 million to acquire the service arm.  Louisville, Kentucky-based BrightSpring announced the deal on Monday, saying that selling its behavioral service arm, ResCare Community […]

Iris Telehealth Acquires InnovaTel from Quartet Health

Iris Telehealth has acquired innovaTel, a now-former division of Quartet Health, in what could be the first of other acquisitions by the company. Announced Tuesday, the deal marks a notable consolidation in the health care enterprise-focused digital behavioral health space. It gives Iris Telehealth additional scale via several overlapping markets it shared with innovaTel. Before […]

How ‘David and Goliath’ Digital Mental Health Startups Can Coexist

Large platform companies dominated the digital mental health landscape in 2024. These top-of-the-food-chain predators work with large customers, have impressive technology capabilities and garner serious investor dollars. These Goliaths leave small digital mental health providers, the relative “Davids” of the industry, looking for their place in the field. That’s according to Rock Health’s 2024 year-end […]

2 PE Firms, Private College Invest in Multi-Specialty Developmental Care Provider Pediatrics Plus

Two private equity firms and an online college have invested in Conway, Arkansas-based Pediatrics Plus. The PE firms – Leavitt Equity Partners and Fulcrum Equity Partners – and Western Governors University have invested in and partnered with Pediatrics Plus. However, the company’s founders, Todd and Amy Denton, will remain its largest shareholders and serve on […]

Inside Avel eCare’s $21M Acquisition of Amwell’s Psychiatric Business 

Amwell (NYSE: AMWL) has sold its virtual psychiatric business to clinician-to-clinician telehealth provider Avel eCare for $21 million. The deal allows Amwell and Avel to focus on their core operations, Avel’s CEO Doug Duskin told Behavioral Health Business. “[Amwell is] focusing on technology as their primary service,” Duskin said. “We’re more of a technology-enabled service […]

Wellpath Gets Court Approval to Spin Off Behavioral Health Assets

Wellpath’s Recovery Services division is well on its way to independence from the rest of the prison-based and outsourced behavioral health care service provider’s operations. However, these behavioral health assets aren’t going far as they change hands. Wellpath’s lender group will acquire the assets as part of a $395 million credit bid plus $14.25 million […]