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:
- Avoid a Wrinkle in your Dermatology Deal
- X-Ray the Radiology Practice Before You Buy It
- Spring Cleaning: Healthcare Private Equity Compliance Checklist
- Want to Buy an “-Ology”? Six Things to Know Before You Buy a Physician Practice
- The Philosophy for Investing in Urology: 5 Key Regulatory Risks
- Believing in Conceiving: Private Equity’s Rebirth in the Fertility Sector
Attending the J.P. Morgan Healthcare Conference January 13-15, 2020 in San Francisco?
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.