PE-Backed Providers Eye Inpatient Mental Health Bed Shortages, Build New Psychiatric Hospitals

Inpatient psychiatric hospital companies are seeing market-specific opportunities to develop new facilities in the face of a decades-long national decline in psych beds.

This new era is marked by growth-minded companies seeking to make the most of the massive demand for acute psychiatric services and other high-acuity services, Behavioral Health Business reports. For example, PE-backed Summit BHC and PAM Health (formerly Post Acute Medical LLC) are expanding the market by building new facilities.

The renewed interest in space comes as the coronavirus pandemic revealed the shortfalls and holes in the American behavioral health system, especially for children. A shortage of psychiatric beds has precipitated stories of patients boarding in emergency departments for days and weeks. Read more.

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