Pros & Cons of Behavioral Health Sector Investing

December 11, 2019
Firm Publication

Investing in the behavioral health industry presents both opportunities and challenges for private equity investors.

One benefit to investors are the statutory and regulatory changes over the last 12 years — including The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) and the Affordable Care Act — that increased the number of beneficiaries enrolled in health plans that provide mental health and substance use disorder (MH & SUD) benefits, thereby creating the potential for higher reimbursement rates. Conversely, the MH & SUD market remains highly regulated, at times with substantial barriers to entry.

Download Pros & Cons of Behavioral Health Sector Investing to learn more about the unique aspects of investing in a behavioral health practice or facility.

Read our additional articles in the series about private equity investing in other healthcare sectors:

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When more than 9,000 investors and more than 450 companies in the healthcare industry meet in the City by the Bay, we know meeting space can be difficult to find. So, we’ve reserved a local hot spot in the middle of it all to assist you in connecting with others while at the J.P. Morgan Healthcare Conference. Learn more.