COLLEGE STATION, Texas, Dec. 7, 2020 /PRNewswire/ — Traditions Health, LLC (“Traditions”), a national hospice and home health provider, announced that it has acquired Centennial Hospice (“Centennial”), a provider of hospice services in Oklahoma. The acquisition of Centennial strengthens Traditions’ leading presence in the Oklahoma City market. Kevin Offel, the President and CEO of Centennial who will be taking on a regional leadership role for Traditions post-transaction, remarked “We look forward to joining the Traditions team where we will continue to provide exceptional care and service to our patients. It has been a great pleasure working alongside the Centennial ownership group, management team and our loyal team of caregivers. We are excited to continue this journey under the Traditions umbrella.” As a leading provider of hospice and home health services, Traditions offers skilled nursing, therapy services, and both physical and spiritual end of life care. The transaction announcement was made by Bryan Wolfe, the President and CEO of Traditions.  “I am extremely excited to strengthen our existing presence in Oklahoma. This is an enormous accomplishment for our organization, and we could not be more excited to welcome the employees and patients of Centennial into the Traditions family,” said Mr. Wolfe. Read the full press release here. Trackbacks/Pingbacks Home Health, Home Care and Hospice M&A Report: Q4 2020 – Mertz Taggart - […] December, private equity-backed post-acute care provider Traditions Health purchased Oklahoma-based Centennial Hospice. The Care Team acquired InTeliCare Home Health…

The past year has been unusual — to say the least — and the home health and hospice M&A landscape is no exception. While the hospice industry has continued to count strong deal numbers over the course of 2020, home health and home care have fallen far behind in their year-over-year deal tallies. The coming year, however, is poised for a comeback of deal flow for several reasons, including Medicare reimbursement changes and pent-up demand. The Year 2020 and COVID-19 In some ways, 2020 should have been a blockbuster year for home health deal-making. The transition to the Patient-Driven Groupings Model (PDGM) on January 1, initially set the stage for mass consolidation within the space. However, that expected M&A activity was curtailed significantly by the COVID-19 emergency beginning in Q1. Many of the small and mid-size agencies that were expected to hit the market never did. Agencies that were expected to struggle under the new payment model were suddenly given a lifeline through Medicare loans, the Paycheck Protection Program (PPP) and Provider Relief Fund grants. Additionally, travel restrictions and social distancing measures curbed buyers’ ability to conduct due diligence on possible acquisition targets, further slowing deal flow. So far, there have been 75 transactions across home health, home care, and hospice in 2020, Mertz Taggart data shows. In comparison, there were 79 deals just in the first three quarters of 2019, and 99 deals over the same period of time in 2018. Of the 75 deals that took place in 2020, 27 were home health related. The Comeback Ahead Despite ongoing COVID-19 disruptions, there are indications that 2021 will likely be a strong year for home health M&A. While this year has only seen 27 home health transactions in the first three quarters, this doesn’t tell the full story. A closer look reveals that eight deals have taken place during the third quarter of 2020. This is a rise from Q2, which only saw five deals. This suggests deal-making action is finally starting to heat up again due to pent-up demand. Among the deals that have taken place recently The Pennant Group Inc. (Nasdaq: PNTG) announced that it had acquired the assets of two home health agencies from Signature Healthcare at Home in July. The company remained active on the M&A front, later announcing its purchase of CMS Home Health Care, a Texas agency, in September. Around the same time, Actinium Healthcare Holdings — a Dallas, Texas-based investment firm — announced it had acquired Central Home Health Services of Texas Inc. in August. Additionally, several new deals have sprung up in the final few months of the year. Charter Health Care Group announced its acquisition of Vitality Home Healthcare and Heartwood Home Health & Hospice in October. Earlier that month, Bridges Health Services also announced a series of transactions with four home health and hospice providers. Over the past couple of years, hospice has dominated the M&A spotlight with home health taking a backseat in comparison. But with hospice acquisition targets dwindling, buyers are starting to turn to home health. The Medicare reimbursement increase, taking effect Jan 1., also places home health in a favorable position moving forward. As the number of COVID-19 cases continues to rise, there’s every reason to believe that the demand for home health care will increase. “COVID will ultimately increase home health utilization as payors look for safer, cheaper solutions,” says Cory Mertz, Managing Partner for Mertz Taggart. “More than ever, folks want to keep themselves and their families at home.” Cory Mertz, Managing Partner, Mertz Taggart Preparing for 2021 Despite the challenges relating to 2020 and the COVID-19 pandemic, many signs point to 2021 being a major deal-making year. The consumer preference for receiving home-based care is expected to continue well after the pandemic is over, which should bolster the sector for years to come. And if the deals picking back up in the last few months are any indication, it’s not unlikely that the industry could see record home health M&A activity in the year ahead.

While the COVID-19 pandemic seems to have the nation’s full attention, it’s not the only public health emergency taking American lives at an alarming rate. Amid the coronavirus, drug abuse — a deadly years-long problem for the country — is also on the rise. Isolation, job loss, and financial strain drive a growing number of people to use drugs with the CDC estimating a record-setting 75,500 drug-related deaths in 2020 if current trends continue. As a result, addiction treatment centers are seeing heightened demand, in some cases reporting as much as a 50% growth in services. While the spike is somber, it’s creating M&A opportunities for those on both sides of the deal. Seller opportunities For owners of substance use disorder (SUD) treatment companies, now may be a good time to sell their business. That’s especially true for those who see expansion opportunities but do not have the financial resources to do so, for smaller providers having trouble navigating COVID-19, as well as anyone looking to receive top dollar for their company. Given the heightened demand in the already hot addiction marketplace, private investors and strategic buyers are especially bullish on SUD purchases as of late. They have their eyes on deals that allow them to expand their service offerings and enter new markets. Additionally, some buyers are allowing for certain COVID-19 adjustments, according to Kevin Taggart, managing partner of Mertz Taggart, meaning they’re looking at not only whether providers were growing their businesses pre-pandemic, but also how they have responded since the pandemic began. While the adjustment can’t bring back missing revenue for that period, the adjustment would “normalize” the company’s value as if Covid had never happened. The one caveat is that the company needs to show that it is back to pre-pandemic levels. Buyer opportunities Opportunity in the SUD space is also ripe for prospective buyers with capital to spend, especially when compared to other sectors of the economy. That holds true even beyond the COVID-19 pandemic, with the future of the addiction treatment industry poised for growth, because the need for services is increasing and the industry has shown to be more resilient in difficult economic times. While the Northeast and California have seen the most noteworthy ribbon cuttings of late, smaller markets are responding to local needs, as well.  Mertz Taggart is also predicting that Q4 of 2020 will see the largest number of M&A transactions since Q4 of 2018, with momentum increasing for 2021. All of this is a positive sign for the long-term viability of the SUD treatment industry, with an estimated market spend of $42 billion per year. “Companies that provide excellent clinical care, keep their charts in order, and can maintain a high census with consistent referral sources will be in demand in 2021,” Taggart says. Kevin Taggart, Managing Partner, Mertz Taggart The bottom line is this: Whether you’re a buyer or a seller, it’s a great time to be in the SUD market. With 11 transactions in both the second and third quarters of 2020, it’s likely the industry will also see those numbers accelerate in the quarters to come. Trackbacks/Pingbacks BrightView Acquires Rebound Recovery Addiction Centers - […] with locations in Lexington, Paris, and soon to be Nicholasville …

VANCOUVER, BC, Dec. 15, 2020 /CNW/ – Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a company creating an ecosystem of health solutions centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies (PAP), is pleased to announce the acquisition of Montreal-based Mindspace Psychology Services Inc (DBA Mindspace Wellbeing), a leader and pioneer in psychedelic programming. The agreement brings together the capabilities of two leading Canadian organizations to develop and scale delivery of evidence-based psychedelic-assisted psychotherapy to provide the highest quality patient outcomes. “Adding Mindspace to the Numinus platform will provide strong synergies for both companies,” said Dr. Devon Christie, Medical Director at Numinus and a MAPS-trained therapist for the delivery of MDMA-assisted psychotherapy. “The companies have similar values and complementary strengths, which make this a strong corporate and cultural fit. We are also proud to grow our presence nationally through this announcement.” “Joining the Numinus team is a natural choice,” said Dr. Joe Flanders, Founder and Managing Partner of Mindspace. “It’s an excellent opportunity for us to work closely with a partner that shares our vision and values. We are impressed by the depth and rigor of Numinus’ clinical team and their authentic commitment to finding meaningful, accessible, and sustainable solutions to the mental health challenges we collectively face”. “We’re very excited to be bringing the Mindspace brand under the Numinus umbrella,” said Payton Nyquvest, CEO of Numinus. “The combination furthers our stated mission and delivers on our prospectus. This is a first and major step forward in our plan for global expansion of revenue-generating clinics and virtual therapy with the objective of health and wellness for all. Today’s announcement sets a positive trajectory for making psychedelic-assisted psychotherapy more accessible to those in need.” Read the full press release here.

LEWISVILLE, TEXAS (PRWEB) DECEMBER 15, 2020 BayMark Health Services announced this week an exciting addition to their portfolio of Substance Use Disorder Services, Liberty Bay Recovery Center, a residential treatment facility in Portland, Maine. BayMark is well-known in the addiction treatment industry as the North American leader in Opioid Use Disorder treatment with more than 250 facilities across the continent providing a variety of treatment options including medication-assisted treatment, counseling, and both inpatient and outpatient withdrawal management services. That portfolio, until recently, included only one residential treatment facility in Bala, Ontario, Greenestone Muskoka. The addition of Liberty Bay is a gratifying one for the company whose mission to improve the lives of individuals with substance use disorders will be well-served by bringing both their clinical and administrative expertise into a new U.S. treatment space. Mertz Taggart was the sell-side advisor of this healthcare Mergers and Acquisitions transaction. Read the full details of the transaction via press release. Trackbacks/Pingbacks Behavioral Health M&A Quarterly Report: Q4 2020 – Mertz Taggart - […] network of more than 250 facilities across the United States and Canada. Mertz Taggart represented Liberty Bay in the…

LEWISVILLE, TEXAS (PRWEB) DECEMBER 17, 2020 BayMark Health Services recently announced its partnership with Recovery Pathways, an office-based opioid treatment (OBOT) provider with three locations in Western Pennsylvania. The programs, two of which are located in Washington, PA and the third in Monroeville, PA, offer medication-assisted treatment (MAT) for opioid addiction using buprenorphine-based medications in an outpatient, physician’s office setting. Buprenorphine-based medications include Suboxone®, Subutex®, and Zubsolv®. Recovery Pathways three convenient locations provide comprehensive treatment to patients with Opioid Use Disorder (OUD) from western Pennsylvania, Ohio, and West Virginia. BayMark now operates or collaborates with eight outpatient, office-based opioid treatment (OBOT) locations in Pennsylvania including Family Recovery Solutions in Central PA, as well as three MedMark Treatment Centers Opioid Treatment Programs offering both methadone and buprenorphine-based products, located east of Pittsburgh. All BayMark-affiliated facilities share a common goal, to improve access to comprehensive and compassionate treatment for individuals who wish to overcome opioid misuse. The outpatient, flexible services provided by OBOT’s allow patients to maintain their commitments and keep living their lives during treatment. Read the full press release here.

If you followed the home health, hospice and home care M&A in 2020, you saw a little bit of everything. For the very early part of this year, most buyers and sellers hit the pause button on dealmaking to observe how the COVID-19 pandemic would impact post-acute care and aging services providers. There were some smaller tuck-in transactions, but hardly any market-moving blockbusters. That changed toward the end of 2020. “This year really had it all,” Mertz Taggart Managing Partner Cory Mertz says. “And after a slow start, things began picking up in late summer. I now believe we’re on a record-setting pace for home health, hospice, and home care M&A activity headed into 2021.” Overall, there were at least 75 home health, hospice, and home care transactions during the first three quarters of 2020, Mertz Taggart data shows. While the fourth quarter is still underway, early indications show it should be a record quarter, ultimately putting 2020 in line with 2019 and 2018, despite a once-in-a-century public health emergency. “At the risk of playing the spoiler, Q4 will be a record quarter for M&A,” Mertz says. “And I would expect this momentum will carry well into 2021.” Cory Mertz, Managing Partner, Mertz Taggart ‘Hitting pause’ on Medicare certified home health Going into 2020, most industry insiders believed that the Patient-Driven Groupings Model (PDGM) would lead to a wave of consolidation, similar to the aftermath of the Prospective Payment System (PPS) in the 1990s. That didn’t happen. In response to the COVID-19 crisis and severe volume swings, the U.S. government tossed out a series of lifelines to support all varieties of health care providers. Those lifelines included the 2% Medicare sequestration suspension, the expansion of advanced payment from the U.S. Centers for Medicare & Medicaid Services (CMS), grants under the Provider Relief Fund and more. Thousands of smaller mom-and-pop home health agencies also utilized the Paycheck Protection Program (PPP) to stay afloat during this difficult time. Combined, all of those resources gave some potential sellers feeling the pressure from PDGM a financial boost. Other potential sellers didn’t end up selling because they didn’t want to disrupt patient care. “We didn’t feel the true impact of PDGM this year,” Mertz says. Cory Mertz, Managing Partner, Mertz Taggart That’s not to say home health dealmaking was nonexistent. Yes, there were fewer deals than in 2018 and 2019, but the first three quarters of 2020 saw at least 27 different transactions. In September, The Pennant Group Inc. (Nasdaq: PNTG) announced it had acquired CMS Home Health Care, a Texas agency with locations in Brownwood and Coleman. In August, Actinium Healthcare Holdings announced its acquisition of Central Home Health Services of Texas Inc. Earlier in the year, BrightSpring Health Services made a deal for Advanced Home Care’s home health and home infusion businesses. LHC Group Inc. (Nasdaq: LHCG) announced several new or expanded home health joint ventures throughout 2020. In riding out PDGM and COVID-19’s impact, many home health operators said they hit pause on all M&A action. Most reversed course toward the end of summer. “I’ve been selling home health agencies since 2006,” Mertz says. “I can’t remember a time when demand has been higher than it is now. Since July, we have received an incredible amount of calls from both strategic and financial buyers looking for home health assets.” The constant in a sea of change While home health M&A activity had its ups and downs, hospice never really cooled off. In fact, by the end of 2020’s third quarter, there were almost as many hospice transactions — 46 — as all of 2019. Despite the public health emergency, hospice multiples remained high as well. “If you are a hospice operator looking for an exit, there has never been a better time to consider a sale,” Mertz says. “Demand is much higher than supply right now, especially for larger hospices.” Cory Mertz, Managing Partner, Mertz Taggart The biggest hospice news to come out of 2020? That would assuredly be the industry-shaping mega-merger between AccentCare Inc. and Seasons Hospice & Palliative care. Currently, AccentCare is the fifth-largest home health provider in the nation, according to data from LexisNexis. Seasons is the fifth-largest hospice provider. In combining the two, the companies hope to create a diversified post-acute care powerhouse with more than $1.5 billion in annual revenues. “With these two organizations together, we have a rare opportunity to shape the future of skilled home-based care,” Steve Rodgers, CEO of AccentCare, said when the deal was first announced. “The new organization will bring together the expertise and vision needed to re-think patient-centered care in the home, and offer innovative solutions to the health systems and physician groups we serve.” That wasn’t the only major hospice deal, however. In November, Addus HomeCare Corporation (Nasdaq: ADUS) announced that it was buying Queen City Hospice and its affiliate, Miracle City Hospice, for about $192 million. “The Addus deal clearly reflects just how much companies are willing to pay for high-quality hospice assets,” Mertz says. “Queen City Hospice has an average daily census of about 900 and annualized revenues of about $56 million.” Hospice is likely to remain hot moving forward, thanks in part to new reimbursement opportunities the hospice Medicare Advantage carve-in and new direct-contracting models from CMS. Home care primed to take off Home care may soon become the new hospice. Over the past couple of years, health systems and payers have increasingly begun to recognize the important role non-medical in-home care service providers play in keeping people healthy, with study after study highlighting the impact social determinants of health have on overall wellness. Now, home care is being driven to the forefront even faster by emerging hospital-at-home and SNF-at-home programs, both of which require the kind of high-touch, low-cost support home care offers. Soon, there may even be additional payment models to support both models. “Traditional home health care payment will not be sufficient given these individuals will require a mix of both skilled home health care services and also home care assistance with activities of daily living,” David Grabowski, a professor in the department of health care policy at Harvard Medical School, told Home Health Care News in August. “The model will have to recognize these enhanced service needs.” Among the largest home care deals this year came in September, when the Providence Service Corporation (Nasdaq: PRSC) announced it had entered into a definitive agreement to purchase home-based care company Simplura Health Group for an enterprise value of $575 million. Another significant deal that included non-medical home care assets was the acquisition of Help at Home by Centerbridge Partners and The Vistria Group, two large PE firms. Prior to an official announcement, reports surfaced the Help at Home’s price tag was around $1.4 billion. Although home care is primed to take off in 2021, it did lag behind home health and hospice from an M&A perspective throughout 2020. That’s not linked to a lack of interest, but rather a shortage of scalable home care assets coming to market. Get ready for a big year ahead Even with the COVID-19 pandemic, it was an exciting year for home health, hospice and home care M&A. Next year has the potential to be a historic one in terms of deal volume, with the entire health care system looking to shift more

LAS VEGAS–December 21, 2020 –(BUSINESS WIRE)–Landmark Recovery – announced the opening of a new in-patient drug and alcohol recovery treatment center in Las Vegas on Dec. 18. Landmark worked with Wellness Real Estate Partners (“WREP”), a private real estate company focused exclusively on investing in real estate leased to behavioral health companies. WREP facilitated the transaction by providing the capital necessary to acquire the real estate previously owned by Las Vegas Recovery Centers and entered into a long-term lease with Landmark. This is Landmark’s first acquisition deal within the recovery space, but they are not new to addiction treatment. Landmark owns and operates 6 other recovery treatment centers in Oklahoma, Indiana and Kentucky and is on track to open an additional 10 locations across the U.S. in 2021. Mertz Taggart provided sell-side services for Las Vegas Recovery Centers in the transaction. Landmark now operates in four states and plans to open 10 new locations in 2021. Read the full press release. Trackbacks/Pingbacks Behavioral Health M&A Quarterly Report: Q4 2020 – Mertz Taggart - […] in December. Mertz Taggart provided sell-side services for Las Vegas Recovery Centers in the transaction. Landmark now operates in…

HASBROUCK HEIGHTS, N.J., Jan. 7, 2021 /PRNewswire/ — Care Finders Total Care, LLC (CFTC) is pleased to announce the addition of another outstanding homecare agency to their Pennsylvania group of companies. ORI HomeCare follows on the heels of their recent acquisition of Union Home Care and provides an even deeper base for CFTC in the greater Philadelphia area. This partnership allows Care Finders Total Care, LLC to build on the two dominant service models offered in Philadelphia — the hourly and Family Care segment of the market — while expanding into the ODP waiver program. Pennsylvania continues to be an extremely important pillar of the CFTC growth strategy into 2021. Coverage in the Northeast now includes 19 offices in New Jersey, three offices in Connecticut, and nine offices in Pennsylvania. “The combination of ORI HomeCare and Union Home Care, in addition to Philadelphia Home Care Agency and At Home Quality Care, provides great strength for CFTC as the company continues to develop its presence in the Northeast region,” CareFinders CEO Jim Robinson commented. ORI HomeCare was represented on the sell-side by Mertz Taggart Read the full press release here.

A steady second half of 2020 bodes well for 2021. Behavioral health M&A remained steadily active in the fourth quarter of 2020, with a total of 27 transactions, according to the latest data from M&A advisory firm Mertz Taggart. Announcements in addiction treatment led the segment in Q4 with some large groups moving forward on multiple acquisition deals. The year finished with 97 transactions overall. 2020’s total number of deals were comparable to those in the previous two years, despite a global pandemic. In 2019, the segment witnessed 97 announcements, and in 2018 an even 100. “The second half of 2020 was as strong as we’ve seen,” said Mertz Taggart Managing Partner Kevin Taggart. “Combine that with the threat of a near-term capital gains tax hike, and we expect an active 2021.” He said new partnerships and access to capital will become especially important in the months to come as healthcare providers emerge from the coronavirus pandemic with a more competitive landscape than before. “We know that financial mechanisms have been shifting,” Taggart said. “While loans and operating income remain the primary sources of capital, private equity investment could be the important variable that contributes to a more optimistic outlook for many behavioral health providers.” Taggart believes the continued infusion of private equity assets combined with a clear forecast of pent-up demand for services will offer a boost to revenue by mid-year. Yet, providers that are able to build capacity quickly will also need to be resourceful in how they approach the imbalance of supply and demand, leveraging technology and strong operational sophistication. “We see additional evidence of a positive outlook in behavioral health based on the number of new center openings across the country,” Taggart continued. “And these are brick-and-mortar locations, banking on an increase in in-person services, even as they continue to rely on telehealth visits.” With an anticipated surge in demand, new center openings and private equity interest, Taggart believes M&A activity could reach a new peak in mid-to-late 2021. The last three years have demonstrated that there’s still plenty of room for strategic acquisitions in behavioral health. Note: The sum of sub-industries (broken down above) does not always equal total sector deal volume, as some transactions include more than one sub-industry. Addiction Treatment In Q4, the deal activity continued for several growing PE-backed portfolio companies. As they add new locations, many are also launching rebranding efforts to unite their networks in name as well as in operations. A recent survey from the National Association of Addiction Treatment Providers noted that providers are making significant investments in technology, which will likely set them up for more objective quality-of-care measurement, which also leads to improved reimbursement from payers. “Buyers are definitely not looking to add scale for the sake of scale,” said Taggart. “Proven clinical quality and the ability to increase census has to be part of the growth strategy.” It was a busy quarter for BayMark Health Services with a number of significant deals. The addiction treatment organization acquired Liberty Bay Recovery Center, a residential treatment center in Portland, Maine, making it the second residential offering in the BayMark network of more than 250 facilities across the United States and Canada. Mertz Taggart represented Liberty Bay in the transaction. BayMark also announced the acquisition of Limestone Health, an opioid treatment program with three locations in Indiana, formerly owned by Springstone, Inc. The transaction represents BayMark’s first entry into the state. In December, it acquired Choices of Louisiana, which offers opioid treatment programs in three locations, and additionally in a separate transaction, it added Recovery Pathways, an office-based opioid treatment provider with three locations in Pennsylvania, to its roster. Also in December, BayMark acquired Echo Treatment Center in Pennsylvania, which will fall under the MedMark Treatment Centers brand. BayMark is a portfolio company of Webster Equity Partners. Summit BHC has acquired Seabrook in New Jersey, adding a 153-bed inpatient center and three outpatient centers to its portfolio. The deal marks Summit’s first entry into New Jersey and brings the company’s total number of locations to 22. Mertz Taggart provided sell-side services for Seabrook in the transaction. Landmark Recovery acquired Las Vegas Recovery Centers in December. Mertz Taggart provided sell-side services for Las Vegas Recovery Centers in the transaction. Landmark now operates in four states and plans to open 10 new locations in 2021. Arisa Health announced the acquisition of the Wilbur D. Mills Treatment Center in Arkansas, which includes a residential and outpatient center as well as an apartment complex for those in recovery. It will be rebranded as Arisa Health Recovery at Mills. Behavioral Health Group announced several deals in Q4. It expanded into Rhode Island with the acquisition of the Center for Treatment & Recovery, LLC, which will be rebranded as BHG Pawtucket Treatment Center. It also announced it had expanded its footprint in Alabama with the acquisition of Huntsville Recovery, Inc. and Stevenson Recovery, Inc. in October. The two locations will be rebranded with the BHG name. In November, BHG acquired Wellness Ambulatory Care in Tennessee. In all, the company operates across 15 states. Discovery Behavioral Health acquired Prosperity Wellness Center, a 40-bed residential treatment center in Washington, representing the 10th brand added to the Discovery portfolio. The organization operates four existing outpatient centers in the state as well. Center For Discovery and Cliffside Malibu merged in 2018 to form Discovery Behavioral Health as a newly created parent company, backed by Webster Equity Partners. Autism Services & Intellectual/Developmental Disabilities Individuals with autism spectrum disorder and intellectual/developmental disabilities were among those experiencing added distress in 2020 attributed to reduced access to services because of the pandemic, according to a report from the National Institutes of Health. As a result, more individuals will likely need a higher level of care in 2021, including involvement from family and loved ones. “Care that extends to the family will be a sought-after service offering,” Taggart says. “We should expect to see buyers looking for acquisitions to enhance comprehensive services and whole-person care.” SPG in October announced two deals. It acquired applied behavioral analysis (ABA) provider Family Support Center as well as Go2Consult, a speech and language services provider. The transactions broaden the geographic coverage for SPG, a portfolio company of Ridgemont Equity Partners. Blue Sprig Pediatrics, Inc. announced a deal to acquire the assets of the Michigan-based Momentum Autism Therapy Services, a center- and home-based provider of ABA services. Pharos Capital Group, LLC in December acquired Catalyst Behavioral Solutions, a Utah-based mental and behavioral health services provider, marking its seventh acquisition. Catalyst offers Catalyst Academy, a program for children. In a platform deal, New Capital Partners and OSF Ventures, part of the OSF Health System, acquired DotCom Therapy, Inc, provider of virtual counseling and therapy for autism spectrum disorder. Caravel Autism Health announced the acquisition of Behavior Therapy Solutions of Minnesota. The combined organization will serve children with autism and their families through a network of six autism therapy centers in the state. Apara Autism Centers in December acquired Behavior Pioneers, a provider of ABA services with four locations in Texas. Mental Health Even now, providers are still wrestling with parity issues, Taggart said. Therefore, mental health organizations that have beneficial in-network contracts with payers will be attractive to strategic buyers. And consolidation will help providers gain the scale they need to bring much-needed leverage to the negotiating table. And any organization that can demonstrate comparable quality of care and reasonable profitability through the use of virtual appointments will be an attractive target. Pathways Health and Community Support, LLC completed the acquhereisition of Access Family Services, Family Behavioral Resources, and Autism Education and Research Institute—three intervention service organizations which will be combined into one entity. Pathways operates in 18 states and the District of Columbia. Previously, Atar Capital acquired Pathways from Molina Healthcare in 2018. Monte Nido & Affiliates, a portfolio company of Levine Leichtman Capital Partners, acquired Rosewood Ranch, L.P., a network of three eating disorder treatment facilities in Arizona. With the transaction, Monte Nido now operates 29 residential and outpatient facilities in 11 states. The Stepping Stones Group, announced the acquisition of Ardor School Solutions, a provider of school-based therapeutic and behavioral health services. Stepping Stones is a portfolio company of Five Arrows Capital Partners. The deal expands the organization’s geographic footprint into New Mexico and Arizona. ProtoCall Services, a 24/7 telephonic crisis intervention provider acquired The Shrink Space, a referral management software platform that is used in higher education with a national network of more than 4,000 licensed clinicians, prescribers and treatment centers. Private equity firm Kelso has acquired a majority interest in Refresh Mental Health, an outpatient mental health network with 200 locations nationwide. Kelso’s stake in Refresh was acquired from affiliates of investment firm Lindsay Goldberg, which helped found Refresh in 2017. Locations acquired in this platform deal include outpatient substance use disorder, eating disorder and mental health treatment centers. Summit Behavioral Healthcare LLC purchased the shuttered 92-bed Clear View Behavioral Center in Colorado for $29.2 million in a deal that closed in December. Summit intends to apply for a new license and begin operations within the first six months of 2021. In a platform deal, Revelstoke Capital Partners acquired Family Care Center, which provides outpatient psychiatry services to the U.S. Armed Forces and veterans in Colorado. The organization plans to expand services in the state and in new geographic areas. Latticework Capital Management in December acquired Beacon Behavioral Hospital, which operates seven intensive outpatient locations and four inpatient hospitals in Louisiana. Now with this platform deal, leaders plan to expand into new states and add new service offerings. Magellan Health, Inc. in December completed a transaction to acquire a 70% interest in Bayless Integrated Healthcare, an outpatient behavioral health and primary care provider in Arizona. Magellan’s core competency has been in managed care, however, the organization has the option to buy the remaining equity in Bayless within the next 36 months. Bayless brings additional integrated health, telehealth and other provider capabilities to the Magellan portfolio. View the Q3 2020 Behavioral Health Report. Trackbacks/Pingbacks Behavioral Health M&A Report: Q1 2021 – Mertz Taggart - […] a busy quarter to close out 2020, BayMark Health Services stayed busy in the new year, announcing the acquisition of Partners in […] #MertzTaggartQuarterly #behavioralhealthmergersandacquisitions #behavioralhealth #behavioralhealthtreatment #mergersandacquisitions #MampAquarterlyreport

NEW YORK–(BUSINESS WIRE)–Enhanced Healthcare Partners, a leading healthcare-focused private equity firm specializing in middle-market healthcare services businesses, is pleased to announce its investment in NeuroPsychiatric Hospitals, a leading provider of integrated healthcare for patients with acute psychiatric disorders and complex medical and neurological disorders. Founded in 2006, NPH utilizes an integrated model of care supported by an interdisciplinary team of healthcare practitioners to ensure the diverse needs of each of their patients are addressed. Unlike the traditional hospital emergency room or a psychiatric care facility where the clinical staff is not equipped to care for patients with both psychiatric and medical issues, NPH’s clinical staff have expertise across multiple disciplines including psychiatric, behavioral, neurological, and medical disorders. The funding from EHP will be used to advance NPH’s expansion efforts and strategic objectives. NPH currently has four locations in Indiana and plans to open additional hospitals in Arizona and Texas during the second half of 2020. EHP will partner with NPH Founder and CEO Cameron Gilbert, PhD, at this inflection point, and together they will continue to build upon NPH’s platform designed to meet the needs of this significantly underserved psychiatric and medical patient population. EHP and NPH have plans for further expansion nationwide. Read the full press release here. Trackbacks/Pingbacks Behavioral Health M&A Report: Q3 2020 – Mertz Taggart - […] equity firm Enhanced Healthcare Partners has invested in NeuroPsychiatric Hospitals, an acute care provider with four locations in Indiana.… Home Health Insights: It’s All About the Multiple (…Or Is It?) - [...] ‘Not So Fast’…There’s No Straight Answer....

DALLAS–(BUSINESS WIRE)–December 22, 2020 — Dallas-based AccentCare and Rosemont, Illinois-based Seasons Hospice & Palliative Care (Seasons), along with Advent International, the private equity sponsor of AccentCare, announced today they have finalized an agreement to combine their two organizations to better meet the growing needs for their services. The duo announced the intent to merge last month, and plan to move forward with a thoughtful integration now that the merger is complete. Providing the full continuum of post-acute care as a unified organization will simplify the complexity that comes with navigating multiple companies, benefiting physicians, payors, and patients alike. Above all, both organizations remain dedicated to providing great service and enhancing capabilities health system and other strategic partners can rely on to ensure quality care for their patients. Read the full press release press release here.