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Q1-2022 Mental Health & Addiction Treatment Update

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Q1-2022 Mental Health & Addiction Treatment Update

Q1-2022 followed a record year for behavioral health M&A activity. Post-pandemic, the behavioral health sector received increased attention as mental health disorder diagnoses continue to rise in prevalence nationwide. Demand for counseling, psychiatric, and addiction treatment services remain at elevated levels.

With the rising demand for behavioral health services, both strategic and financial consolidators look to capitalize on the growing sector. Strategic consolidators aim to diversify service offerings, expand geographically to underserved communities, and obtain the best providers in the field. Financial consolidators seek platforms in emerging sub-sectors yet to be targeted by large consolidators. Additionally, Investment hold periods continue to lengthen, signaling a new wave of “buy-and-build” strategies. Deal flow is further augmented as behavioral health companies broaden their digital health capabilities to match the growing preferences of patients and capture a larger patient-base.

Provident anticipates growth in the sector primarily through de novo acquisitions ranging in size as major players continue to expand horizontally and emphasize a move towards technology-centered care.

To print and download the full Mental Health & Addiction Treatment Update report, please click below…

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Sources: SEC Filings; Company Press Releases, and Reports; IBISWorld; Capital IQ; PHP Estimates and Research. This document has been compiled with publicly available information. Provident Healthcare Partners, LLC makes no guarantee of its accuracy or completeness. No data or statement should be construed to be a recommendation for the purchase, sale, or retention of any security.