Why Luxury Rehab Is an Unpopular Investment 

Adam Nesenoff is convinced that luxury rehabilitation centers, the amenity-filled facilities to treat addiction, are a terrific investment. The problem is convincing others. “Banks are struggling to find what we rely upon,” said Nesenoff, who, with his brother, David Nesenoff, founded Behavioral Health Acquisitions in 2023 as a vehicle to put money into luxury rehab […]

Behind the Glamour: Why Luxury Rehab Centers Have Lost Their Appeal

Tikvah Lake Recovery changed for the better when it “got rid of the 20 year olds on their phones,” according to Adam Nesenoff. Nesenoff has co-owed Tikvah Lake with his father, David Nesenoff, since 2016. It is a residential addiction treatment center in Sebring, Florida. More specifically, it is a self-described luxury rehabilitation center, charging […]

[Updated] From Acquisitions to IPOs: Behavioral Health Companies Primed for Their Next Chapter

Investing in the behavioral health industry has evolved rapidly in the last five years. From dizzyingly high funding levels to dramatic drops in annual totals, the recent past makes visualizing the future a daunting task. But long-term industry trends and emerging investment patterns offer some idea of what direction up-and-coming behavioral health companies are heading. […]

Outpatient Care Takes Center Stage in PE-Backed Mental Health Investments

Industry insiders anticipate that health care private equity deal activity will increase in the second half of 2024. In the behavioral health sector, sluggish deal flow could be picking up. Several notable transactions have crossed the finish line as investors increasingly focus on outpatient care rather than full continuum care, according to a new report […]

Private Equity in Behavioral Health: Exploring Current Investment Activity

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 […]

‘Investors Are Hungry To Find the Best’: It’s Feast or Famine in Digital Behavioral Health Investing

In case you missed it, Behavioral Health Business has launched a new specialty publication for professionals in the substance use disorder space. You can subscribe to Addiction Treatment Business here: Subscribe today! When it comes to digital health investing, it’s feast or famine for behavioral providers, driving some startups to make tough choices. In 2021, […]

How Federal Probe Into Private Equity’s Health Care Role Could Impact Behavioral Health Deals

Federal agencies may be cracking down on private equity investment in health care, which could have implications for behavioral health dealmaking in the future. In early March, the Federal Trade Commission, the Department of Justice’s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services launched a new investigation into private equity and […]

PE Wary of Serious Mental Illness Investment, But Venture Capital May Be Ready to Pounce

While private equity investors continue to look for new opportunities in behavioral health, there is one area that is still relatively uncharted: serious mental illness (SMI) care. Caring for the SMI population can be very challenging and requires a multipronged approach, as well as a robust patient engagement plan. Due to these challenges, SMI care […]

Biden Initiatives Dampen Behavioral Health Deals, But ABA Therapy Remains Hot Target

The Biden-Harris administration announced new initiatives in December 2023 to combat “corporate greed in health care.” The initiatives will likely not directly block behavioral health deals, but headline risk has caused investors to “suddenly” become more cautious.  Behavioral health, and other provider categories that serve vulnerable populations, may experience less interest from large private equity […]

Behavioral Health Providers Face New Compliance Burdens With No Surprises Act

A law meant to protect patients from spurious hospital practices may create headaches for the behavioral health industry. The No Surprises Act adds additional administrative burdens to provider organizations to take on without a corresponding funding measures. The law, in part, requires health care organizations to provide good faith estimates to patients who choose to […]