For private equity company FFL Partners, going into the addiction treatment area followed observing a space in readily available offeringsfor patients The company invested in Top Behavioral Healthcare LLC, a consortium of behavioral and mental health centers with a focus on drug and alcohol recovery centers based in Franklin, Tennessee, in 2017.
As we looked at the marketplace landscape, we believed that there was a hole in the marketplace in terms of treatment options.
Heather Gartin
Director, FFL Partners
” As we looked at the marketplace landscape, we believed that there was a hole in the marketplace in terms of treatment options. There were high-end, out-of- network providers that frequently needed big out-of- pocket [payments] from patients,” states Heather Gartin, director at FFL. On the other end of the spectrum, she discovered an absence of top quality, not-for- earnings services.
She states Top Behavioral in specific focused on a method to provide an in- network residential program with finest-in- class clinical abilities.
Still, the growing need for behavioral health care and addiction treatment isn’t adequate to draw financiers. Business have to be strong, too.
” There’s no concern that there is a crisis that’s produced a need for these business. Regrettably, they’re not all produced equivalent. There are great ones and there are bad ones,” states Jeff Stevenson, handling partner of VSS, which invested in BRC Recovery in an offer that was finished in 2015, along with NewSpring Health Capital. The deal assisted produce BRC Healthcare, a holding business for future BRC Recovery acquisitions. In early 2020, VSS likewise invested in Climb Behavioral Health, an operator of Utah-based mental health centers for at- danger teens.
There’s no concern that there is a crisis that’s produced a need for these business.
Jeff Stevenson
Handling Partner, VSS
When it comes to picking which treatment facility to invest in, devoted management groups that comprehend the market and earnings streams are vital, states Stevenson. He and his group mostly look for “strong, skilled” management groups that comprehend the market. “It’s about the clinical program that drives whether it’s an appealing chance or not,” he states.