On January 6, Summit Behavioral Healthcare announced it had acquired seven psychiatric hospitals in six states from Strategic Behavioral Health. The financial terms of the deal were not disclosed.
This transaction will add an additional 613 inpatient psychiatric beds to Summit BHC’s portfolio, expanding its existing presence in Iowa, Tennessee and Texas and giving the company a foothold in New Mexico, North Carolina and Wisconsin for the first time. Strategic Behavioral Health operated two hospitals in Wisconsin and one hospital in the other states.
The newly acquired facilities treat children, adults and elders and operates an unspecified number of outpatient programs, according to a news release.
Summit BHC was founded in June 2013 to develop and operate a network of leading addiction treatment and behavioral health centers throughout the United States. Including the newly acquired facilities, the company owns and operates 31 inpatient facilities across 19 states. Its services include acute inpatient care, detoxification programs and residential and outpatient services. In September 2021, Patient Square Capital, a dedicated healthcare investment firm headquartered in Menlo Park, California, agreed to buy Summit BHC from private equity firms FFL Partners and Lee Equity Partners in a deal that valued Summit BHC over $1 billion. That deal closed in November.
The deal with Strategic Behavioral Health will add an additional 613 inpatient psychiatric beds to Summit BHC’s portfolio, expanding its existing presence in Iowa, Tennessee and Texas and giving the company a foothold in New Mexico, North Carolina and Wisconsin for the first time. Strategic Behavioral Health operated two hospitals in Wisconsin and one hospital in the other states.
This deal also encapsulates two defining features of the previous year — the growing interest of private equity in behavioral health and the strong behavioral health M&A market. In fact, according to the LevinPro HC database, the Behavioral Health sector saw one of its busiest quarters of all time during Q4:21, clocking in at 37 deals and totaling approximately $2.58 billion in announced spending, and demand for Behavioral Health is not expected to waver going into 2022.
