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 […]

Coming Out of a Slow Q1, Acadia Healthcare Ramps Up Focus on CTCs, Outpatient Expansion

While Acadia Healthcare (NASDAQ: ACHC) saw a slow start to 2024, its leadership said that an improving labor market and rate improvements are tailwinds for the rest of the year. The first quarter of 2024 was plagued by weaker-than-anticipated patient volumes, which leadership attributed primarily to seasonality, and lower-than-expected admission rates in its military specialty […]

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 […]