Summit BHC Moves into Colorado

Summit BHC Moves into Colorado

It’s been some time since we heard about Summit BHC. There’s a good reason, too. It hasn’t announced an acquisition since October 2018. Now comes news the firm has moved into Colorado, making its first acquisition in the state. On January 22, the company added Peak View Behavioral Health, a 112-bed acute psychiatric and behavioral health hospital in Colorado Springs. Financial terms were not disclosed. Summit was founded in 2013 to develop and operate a network of addiction treatment and behavioral health centers throughout the United States. Flexpoint Ford LLC made a controlling investment in the Franklin, Tennessee-based firm in 2015 and exited in October 2017 to Lee... Read More »
Behavioral Health Care Deals Keep Growing

Behavioral Health Care Deals Keep Growing

Behavioral health care deals are on a hot streak. Only three quarters of the way through 2018, at least 59 deals have been made public, compared with 56 in all of 2017. Despite the soaring valuations, the buyers keep lining up. For example, another platform-builder just entered the sector. River Cities Capital Funds, a growth equity firm based in Cincinnati, acquired Carolina Partners in Mental HealthCare (CPMH), North Carolina’s largest provider of outpatient mental and behavioral healthcare services across North Carolina with more than 120 mental health professionals. River Cities Capital plans to work with CPMH’s management to aggressively grow the company’s footprint... Read More »
PE Firms Swarmed to Behavioral Health in Q4:17

PE Firms Swarmed to Behavioral Health in Q4:17

Deal activity in the Behavioral Health Care sector was consistent with most of the previous quarters. Although deal volume slipped 14% from the previous quarter, it rose 20% compared with the same quarter a year earlier. The fourth quarter’s total of 12 deals represents 22% of the 54 transactions announced in the past 12 months. Private equity firms accounted for all but one acquisition in the fourth quarter, as smaller firms sold companies and larger firms purchased them as add-ons to their existing portfolios. Universal Health Services (NYSE: UHS), which operates inpatient psychiatric hospitals, was the only publicly traded acquirer in this quarter. Substance abuse treatment programs and... Read More »

The MACRA Effect Keeps Building

Last year, the Centers for Medicare and Medicaid Services asked for comments and then rolled out the final rules on the implementation of the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). Many industry observers predicted the rules would drive the majority of independent physician practices “right into the arms” of a local hospital, health system or other entity. Those predictions appear to be true. As of mid-March 2017, 46 acquisitions of physician practices have been announced, a 105% increase from the same period a year ago. Only one of the deals disclosed a price,  Optum’s (NYSE: UNH) $3.3 billion acquisition of Surgical Care Affiliates Inc. (NASDAQ: SCAI).... Read More »
Behavioral Health Care Deals Keep Growing

Behavioral Health Care M&A Recap 2015

Behavioral health is a growing national concern, finally, and investors are responding to the growing public attention. Mergers and acquisitions in this healthcare sector rose more than 46% last year, to more than 40 transactions. The two publicly traded, pure-play companies in this area, AAC Holdings (NYSE: AAC) and Acadia Healthcare Company (NASDAQ: ACHC), lead the list of acquirers (six and five announced deals, respectively). Private equity firms were also active acquirers, including Kohlberg & Company, Revelstoke Capital Partners, Flexpoint Ford, Vestar Capital Partners and Shore Point Partners. Many PE portfolio companies have been building behavioral health care... Read More »