After closing more than 80 centers over the last year, LifeStance (Nasdaq: LFST) is taking a measured approach to growth. The outpatient mental health provider plans to open no more than 10 de novo facilities by the end of the year. That estimate is down from its initial expectation of opening no more than 20 […]
Teladoc (NYSE: TDOC) is working with a sense of “urgency” to restructure its underperforming mental health company BetterHelp, focusing on expanding insurance deals to revitalize the business. This comes after a streak of disappointing earnings results. The company announced a net loss of $837.7 million, or $4.92 per share in its second-quarter earnings call. “This […]
As the M&A market begins to rebound for behavioral health providers, many in the sector are looking beyond their traditional targets and bridging the divide between nonprofits and for-profits. Historically, for-profits and nonprofits have had many preconceived notions about each other. Nonprofits have dismissed private companies as solely profit-driven entities lacking a true mission. Meanwhile, […]
Dealmaking in the behavioral health space has been slower in recent years. However, a handful of notable companies could be changing hands in the not-so-distant future. Based on data from the first quarter, it appears behavioral health dealmaking is stuck at lower volumes than pre-pandemic levels. As we prepare for new batches of M&A data […]
Medicaid redeterminations have begun to impact Universal Health Service’s (NYSE: UHS) behavioral health arm. Overall, behavioral health patient days were slightly lower in Q2 than expected, at a 1.4% increase compared to the second quarter of 2023. UHS CFO Steve Filton attributed the slow growth to staffing pressures, Medicaid redeterminations and some facility-specific issues. Filton […]
The autism industry’s course correction couldn’t have come at a more opportune time. Over the last two years the autism industry has seen a dip in M&A deal flow. After a massive infusion of capital in 2021 and 2022, the industry saw major public stumbles, including the bankruptcy of large ABA provider CARD and massive […]
Private equity-backed ABA Connect has acquired ABA Therapy of Houston, bringing its footprint to 12 facilities across Texas and Colorado. The acquisition bolsters ABA Connect’s foothold in the greater Houston area, complementing its existing facility in nearby Katy, Texas. The company’s CEO, Jessie Smedley, called ABA Therapy of Houston a “natural addition.” “In our early […]
As of late, the bulk of headlines about private equity in health care have been overwhelmingly negative. This concept is not only reflected in recent federal probes examining PE’s role in health care and the general anti-PE comments from some lawmakers, but also in the eye-catching legislative actions that some states, such as California, are […]
Ethema Health Corporation (OTCQB: GRST) has agreed to buy Kentucky-based alcohol and substance use disorder (SUD) provider Edgewater Recovery Center. The terms of the deal were not disclosed. Florida-based Ethema had previously set a target of expanding to 500 beds by the end of 2025. The deal significantly exceeds that goal, boosting the provider’s capacity […]
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. […]
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