Wellpath’s $425M Behavioral Health Division on the Market Following Bankruptcy Announcement

Behavioral Health Business December 6, 2024
Chris Larson

A behavioral health enterprise with $425 million in revenue is on the market and potentially at a discount to typical market rates.

Wellpath, one of the nation’s largest providers of prison-based and outsourced behavioral health care, is seeking the sale of its behavioral health division, according to bankruptcy documents. The Nashville, Tennessee-based provider hopes its Recovery Services division will net at least more than $375 million.

The company filed for bankruptcy on Nov. 11. Publicly available documents spell out the company’s plan to potentially accelerate a piecemeal sale of Wellpath’s various parts related to behavioral health services. They also spell out how a private equity-funded company ultimately failed to balance its growth, leverage and the challenges of the health care...

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