Behavioral Health Business February 2, 2024
Despite the higher reimbursement rates from private-pay models, investors are shifting their focus to in-network providers who offer stability.
In-network behavioral health providers have faster growth, quicker revenue cycles and better overall returns, industry insiders told Behavioral Health Business. Although developing relationships with payers can be hard work, it can pay off with investors.
Private equity firm Shore Capital invests exclusively in in-network businesses, a technique that has proved successful.
Chicago-based Shore Capital has invested in six behavioral health businesses, with around 40 health care deals total. The company has approximately $6 billion in assets. Its portfolio includes speech and applied behavior analysis therapy (ABA) provider Behavioral Innovations as well as outpatient substance use disorder (SUD) provider Brightview.
“Reimbursement models...