Private equity deals in behavioral health declined in 2023 but could pick up in 2024 as investors turn their attention to the space.
Here are three private equity-backed acquisitions in the field Becker's has reported in 2024:
- California private equity firm HCAP Partners acquired three behavioral health organizations — Behavioral Medicine Associates, Workers Compensation Psychological Network and Reservoir Health — to merge under the name PAX Health. The merger will create one of the largest behavioral health businesses in the northeastern U.S.
- Private equity-backed Baton Rouge, La.-based Beacon Behavioral Health Partners added nine new behavioral clinics across the southwest to its practice. The network expects to double its growth from 2023 in 2024.
- ARC Health, part of the private-equity-backed Thurston Group, acquired 12 practices in 2023. The behavioral health group is made up of 21 practices in 16 states.