Deal-making in the mental health and substance use disorder market is declining, according to a report from Provident Healthcare Partners.
In the third quarter of 2023, there were seven transactions in the mental health space, down from 14 in the same time period in 2022, according to Provident's third-quarter review of healthcare mergers and acquisitions. Most transactions were digital- or telehealth-focused investments, Provident said.
In the substance use space, Provident found five transactions in the third quarter of 2023, down from 14 in the third quarter of 2022. Major consolidators such as Acadia and UHS are turning to site development and joint ventures over acquisitions, according to Provident.
Transactions in the autism services space were stable in the third quarter, with eight total transactions. The area is an attractive choice for investors because of outside demand for services nationwide, according to Provident's report.