In many ways, the behavioral health world is divided into two camps: for-profit and nonprofit providers. But as the industry matures and consolidates, the two are likely to interact more often – and they could even learn from each other.
Moving forward, there is potential for more M&A opportunities between the two groups, with nonprofits bringing a wealth of institutional knowledge and private equity-backed for-profits bringing operational and tech-savvy to the table, reports Behavioral Health Bsuiness.
Still, to make these partnerships work, institutions on both sides of the line must break down bias and even cut through some red tape.
Nonprofits are skeptical of private equity-backed providers’ care, and for-profits are wary of the nonprofit’s business model.
The deal market is hot in nonprofit and for-profit behavioral health. Over the last five years, Matrix Capital Markets Group reported 439 transactions in the behavioral health space. Read more.
