Knowledge@Wharton July 15, 2024
A new study from Wharton’s Marissa King tallies the number of private equity firms that have acquired behavioral health facilities across the country.
Private equity firms are increasingly buying mental health clinics and substance abuse facilities across the country, but it isn’t clear whether the investments are resulting in better care or cost efficiencies, according to new research.
The study, “Geographic Penetration of Private Equity Ownership in Outpatient and Residential Behavioral Health,” found that 6% of mental health facilities and 7% of addiction treatment facilities nationwide are now owned by private equity firms. In Colorado, Texas, and North Carolina, private equity firms hold roughly 25% of those facilities.
“There is this dearth of treatment, and it seems like private equity...
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