The behavioral health industry presents real estate investors with a compelling opportunity compared to more traditional facility portfolio operators. But it comes with a trade-off. On one hand, some behavioral health facilities will hit their break-even point with just 50% to 60% occupancy. On the other hand, they are much less predictable businesses with shorter […]
Category: New Development
Outpatient mental health providers made up the bulk of behavioral health companies that appeared on this year’s Inc. 5000, a list of the nation’s fastest-growing companies. Of the 40 companies that Behavioral Health Business identified, 24 exclusively focused on providing mental health services in various formats and with a wide variety of specializations. Two other […]
Patient-matching platform Headway is in the midst of closing a $100 million funding round, boosting its valuation to $2.3 billion, reports say. Spark Capital led the round, according to Bloomberg. Headway’s new valuation is roughly double what it was a year prior. Headway’s existing investors include Thrive Capital, Accel, Andreessen Horowitz and Global Founders Capital. […]
Virtual behavioral health provider Spring Health has announced a new program focused on addressing patients’ social determinants of health (SDoH). Dubbed Community Care Solution, Spring plans to offer the program through its employer and health plan partners. The new service aims to improve the conditions that impact a patient’s mental health, including their ability to […]
Private equity-backed Pathways Health and Community Support is setting itself up to triple the number of people it serves by 2030 and do so under a new name: Clarvida. The behavioral health and social services platform will do so, in no small part by better unifying the several parts of the business into a more […]
Once sidelined as a digital-only contender, venture capital is becoming a more mature player in the behavioral health arena. And the numbers are starting to tell the tale. In the first quarter of the year, venture capital firms invested $350 million in the behavioral health sector, according to M&A advisory firm Mertz Taggart. Similar quarterly […]
Limbic secures $14 million in funding London–based Limbic, a mental health AI company, raised $14 million in a funding round led by Khosla Ventures and joined Gaingels and Illusian. England’s National Health Service (NHS) has used Limbic’s web-based chatbot to intake more than 250,000 patients. Limbic will use the newly raised funds to expand to […]
Behavioral health dealmaking will likely pick up in 2024 but initial public offerings (IPOs) may be noticeably absent. The private market — especially private equity investors and their platforms — has more than enough capital and motivation to do deals, making this year a compelling time for exits and trades. Still, experts tell Behavioral Health […]
Ideal Option opens new MAT clinic Outpatient addiction treatment provider Ideal Option opened a new clinic in Great Falls, Montanna. The new clinic will provide buprenorphine-based medication-assisted-treatment (MAT) to individuals with substance use disorder (SUD). The American Rescue Plan Act partly funded the new clinic. “The grant funding from the American Rescue Plan Act allows […]
As the domestic capital market for behavioral health companies tightens, foreign investment presents a timely new financing opportunity. Specifically, the EB-5 investment visa program, which incentivizes foreign investors to pour capital into American businesses, could be a new avenue for providers. High-interest rates and high-profile stumbles in the behavioral health space have significantly slowed investment […]