2024 Review of Behavioral Health M&A Transactions and Trends
This Bulletin is brought to you by AHLA’s Behavioral Health Practice Group.
- November 13, 2024
- Mason Motal , VMG Health
- Clinton Flume , VMG Health
Behavioral health mergers and acquisitions (M&A) recovered significantly through the first quarter of 2024 but have since leveled off. Based on data gathered by VMG Health, these deals are up approximately 6% compared to year-to-date (YTD) September 2023. The rise in deal volume can be attributed to the emergence of mental health and substance use disorder treatment platforms coming to market, labor cost inflation stabilizing, positive reimbursement changes, and continued increase in telehealth services, among other factors. According to PitchBook’s Q2 2024 Healthcare Services Report, the behavioral health market has begun to move away from developing continuum-of-care builds and is now emphasizing outpatient mental health services, driven by favorable reimbursement trends and practical challenges with the continuum-of-care approach.
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