Feb 19, 2021

Behavioral Healthcare Services – February 2021

Behavioral Health Projected to Increase Following Pandemic Uncertainty


Capstone’s February 2021 Behavioral Healthcare Services Update reports Merger and acquisition (M&A) activity moderately increased in 2020, with 111 transactions compared to 103 in 2019.  Notably, while other industries experienced a steep pandemic-driven drop-off in deal activity during Q2, the Behavioral Healthcare Services industry remained relatively stable. The industry is expected to see strong growth in 2021, as COVID-19 has proved not only a physical health crisis, but a mental health crisis as well due to prolonged lockdowns, job losses, and social isolation.

Included in this report:

  • Factors contributing to the 32% increase in M&A activity in Q4 2020 compared to Q4 2019
  • Why private equity (PE) firms are attracted to the highly fragmented and growing sector
  • The importance of focusing on the behavioral health needs of adolescents is further discussed in an exclusive interview with Dave Bornhoeft, Partner at Cognitive Capital Partners
  • The impact of President Biden’s outlined plans to expand access to behavioral healthcare services in his $1.9 trillion-dollar American Rescue Plan package
  • How temporary regulatory changes to telehealth services under the CARES (Coronavirus Aid, Relief, and Economic Security) Act has affected Telehealth visits

Related Transactions


Have a question or want to get in touch? Contact Us by clicking on the button below!