Behavioral Health Business February 13, 2024
The Biden-Harris administration announced new initiatives in Dec. 2023 to combat “corporate greed in health care”. The initiatives will likely not directly block behavioral health deals, but headline risk has caused investors to “suddenly” become more cautious.
Behavioral health, and other provider categories that serve vulnerable populations, may experience less interest from large private equity firms due to headline risk, according to PitchBook’s Q4 2024 health care report. Still, certain sectors of behavioral health, including applied behavioral analysis (ABA), can expect an increase in investor interest.
The decline in sponsor interest in behavioral health will be “marginal,” according to Rebecca Springer, PitchBook’s lead analyst of healthcare, but investors who are on the fence may opt for other options,...