Behavioral Health Business May 1, 2024
New research reveals how much private equity is in control of the behavioral health sector.
In short, it’s less than dealmaking trends in the last several years may suggest.
“Cumulatively, private equity-owned mental health practices constituted 6.2% of all mental health facilities (652 of 10,324) and 7.1% of all SUD facilities (1,152 of 16,174) nationally, but private equity penetration was heterogeneous across states,” a new study by Oregon Health & Science University (OHSU), the University of Pennsylvania and Yale University finds.
“The new study is a notable development for an area of medicine once thought to have scant profit margins,” a statement from OHSU reads. Researchers also called private equity ownership “a growing trend across medicine.”
That figure ignores...