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 […]
Despite the higher reimbursement rates from private-pay models, investors are shifting their focus to in-network providers who offer stability. In-network behavioral health providers have faster growth, quicker revenue cycles and better overall returns, industry insiders told Behavioral Health Business. Although developing relationships with payers can be hard work, it can pay off with investors. Private […]
Behavioral health giants Odyssey Behavioral Health and Discovery Behavioral Health, both private equity-backed diversified companies, are scaling back their eating disorder treatment locations. These closures come at a time when other PE-backed behavioral health providers, at least on the surface, appear to be navigating the treacherous waters of the highly-specialized eating disorder treatment space. The […]
LifePoint opens new joint venture with Baystate Health Behavioral health operator Lifepoint Health and nonprofit health system Baystate Health have opened a new joint venture Valley Springs Behavioral Health Hospital. LifePoint operates the Massachusetts-based facility, offering inpatient behavioral health services for teens and adults. It will include 150 private and semi-private rooms, as well as […]
With macroeconomic headwinds leading to declining valuations and less M&A activity, the mental health space is at a crossroads. The notoriously fragmented industry is still prime for maturation, but many companies are facing growing pains. Several companies that came onto the public market during the 2021 boom year are struggling to keep up with investor […]
Investment in mental health has exploded over the last five years. Still, there remains a large gap between inpatient care and outpatient treatment, which could be a business opportunity for providers looking to expand. Specifically, more and more providers are eyeing intensive outpatient programs (IOPs) to care for patients that need either a step down […]
When it comes to behavioral health dealmaking, buyers and sellers can sometimes be ships passing in the night. There’s plenty of interest in getting a deal done early on, but it quickly fizzles out, with both parties going their separate ways. Especially in 2022, buyers and sellers were frequently not on the same page in […]
The current financial climate may mean fewer mega deals in behavioral health next year. But investors will likely continue to have a healthy appetite for smaller transactions, industry insiders believe. “I think that buyers will get more selective, but I think the demand is still [there],” Kevin Taggart, managing partner at Mertz Taggart, said during […]
Behavioral health consolidation will accelerate as payers deepen their involvement and increase their focus on the industry. The last decade or so — accelerated by the coronavirus pandemic — has seen an influx in capital and professionalization in the fragmented behavioral health industry. But as behavioral health becomes increasingly relevant in the wider health care […]
One month after private equity platform Onex Partners agreed to acquire a majority stake in Newport Healthcare, the deal is now officially done. The Toronto-based Onex Corporation — a financial investment firm that oversees Onex Partners — announced Tuesday it had completed its purchase in Newport, a behavioral health provider for teens, young adults and […]
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