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Private Equity Health Care Acquisitions – July 2021

August 6, 2021

In light of the growing investor interest in health care and the risks associated with private equity ownership of health care companies, the Private Equity Stakeholder Project will be tracking private equity-backed health care acquisitions. Below is a list of private equity health care buyouts and add-on acquisitions completed or announced during July 2021. We will continue to track acquisitions on a monthly basis.

See June 2021 acquisitions here.

Several private equity acquisitions of behavioral health companies in July reflect growing investor interest in the behavioral health industry, which includes mental health providers, addiction treatment, and autism services.

Industry analysts have noted increased private equity deal activity in behavioral health in recent years. For example, private equity firms were involved in 20 of the 27 behavioral health deals in the fourth quarter of 2020.[1] Growing investor interest stems from a combination of opportunities for consolidating the fragmented industry and increased demand for mental health services as a result of decreasing stigma associated with mental illness and expanded coverage for treatment.[2]

See our report: Understaffed, Unlicensed, and Untrained: Behavioral Health Under Private Equity

Private equity’s tendency to demand outsized returns in a sector that is already vastly underfunded and serves vulnerable populations raises serious concerns about its potential impact on patient care. The risks of increased private equity investment in behavioral health services include the potential for inadequate staffing or reliance on untrained and unlicensed staff, pressure on physicians to provide unnecessary and costly services, or abuse of federal funding programs at the expense of patient care.[3]

July Behavioral Health Acquisitions

CompanyTypePE FirmAcquiring EntityLocation
Aacres (California & Nevada)ID/DD servicesCenterbridge Partners, Vistria GroupMentor NetworkCA, NV
SL StartID/DD servicesCenterbridge Partners, Vistria GroupMentor NetworkID
AspireID/DD servicesCenterbridge Partners, Vistria GroupMentor NetworkID
Creative Work SolutionsID/DD servicesCenterbridge Partners, Vistria GroupMentor NetworkNM
Lighthouse Autism CenterAutism servicesCerberus Capital Management n/aIN, MI
Walden Behavioral CareEating disordersLevine Leichtman Capital Partners and Monroe CapitalMonte Nido & AffiliatesMA, CT, GA
Newport AcademyYouth mental healthOnex Partners n/aCA, CT, MD, PA
Aspire Treatment & Recovery CenterAddiction treatmentShore Capital PartnersBrightViewVA
ThriveworksMental health/TeletherapyWellington Management, Transformation Capital, Fidelity Investments, RA Capital Management and Redmile Group n/aNational
Concerted Care GroupAddiction treatmentWindRose Health Investors and Inclusive Capital PartnersKolmac Outpatient Recovery CentersMD

Mentor Network Add-on Acquisitions – Centerbridge Partners

The Mentor Network, owned by private equity firms Centerbridge Partners and Vistria Group, made multiple add-on acquisitions in July. Mentor provides residential and community services to adults and children with intellectual and developmental disabilities and brain and spinal cord injuries, and to and to youth with emotional, behavioral and medically complex challenges. It is also one of the largest for-profit foster care companies in the US.[4]

In July Mentor acquired multiple programs for people with intellectual and developmental disabilities from Embassy Management LLC, including Aacres in California and Nevada, SL Start and Aspire in Idaho, and Creative Work Solutions in New Mexico.[5]

Mentor has attracted scrutiny for allegations of allegations of widespread abuse, neglect, and deaths in its foster care and residential programs including as recently as last Fall, when

state regulators in Oregon discovered so many violations at a Mentor home that they shut the facility down for good.[6]

Despite ongoing issues, Centerbridge Partners and Vistria Group have collected almost half a billion dollars in debt-funded dividends from Mentor over the course of its two-year ownership, including a $375 million debt-funded dividend in February 2021.

Lighthouse Autism Center – Cerberus Capital Management, ABRY Partners

Cerberus Capital Management has invested in Lighthouse Autism Center alongside current owner private equity firm ABRY Partners.[7] Lighthouse is a provider of applied behavioral analysis (ABA) services for children with autism. The company operates in the Midwest, with 20 locations in Indiana and 3 locations in Michigan. Abry Partners has owned Lighthouse since October 2018.[8]

ABRY Partners executive Nick Scola, who is responsible for ABRY’s investment in Lighthouse, previously oversaw private equity firm H.I.G. Capital’s investment in behavioral health firm Community Intervention Services (CIS), a platform company that acquired and operated regional behavioral health companies. H.I.G. and South Bay Community Services, its CIS subsidiary operating mental health clinics in Massachusetts, were sued by Massachusetts Attorney General Maura Healey for violating the False Claims Act by fraudulently billing Medicaid for mental health care services provided to patients by unlicensed, unqualified, and unsupervised staff members. South Bay Community Services agreed to pay $4 million settlement in 2018, but litigation against H.I.G remains ongoing. Community Intervention Services filed for bankruptcy in January 2021.

Newport Academy – Onex Partners

Private equity firm Onex Partners has acquired a majority stake in Newport Academy from the Carlyle Group in a deal valued at $1.3 billion.[9] Newport Academy operates behavioral health programs for teens, including addiction treatment, eating disorders, mental health, and services for “troubled teens.”[10]


CompanyTypePE Firm
Optimum Healthcare ITStaffingAchieve Partners
Avel eCare (fka Avera eCare)TelehealthAquiline Capital Partners
PartsSourceHealth techBain Capital
Lighthouse Autism CenterBehavioral healthCerberus Capital Management
Parexel InternationalBiopharmaceuticalsEQT and Goldman Sachs Merchant Banking Division
Zavation Medical ProductsMedical devicesGemspring Capital
Shields Health Solutions HoldingsPharmacy servicesIntermountain Ventures
In’Tech MedicalMedical devicesMontagu Private Equity
DirectMed Parts & ServiceMedical devicesNew MainStream Capital
Gastro HealthGastroenterologyOMERS Private Equity
Newport AcademyBehavioral healthOnex Partners
G-Con ManufacturingMedical devicesSumma Equity
4G ClinicalHealth techThe Goldman Sachs Group
Dental365Dental servicesThe Jordan Company
GreenphireHealth techThoma Bravo
Circle of CareHome healthTwo Sigma Impact
ThriveworksBehavioral healthWellington Management, Transformation Capital, Fidelity Investments, RA Capital Management and Redmile Group

Add-on Acquisitions

CompanyTypePE FirmAcquiring Entity
SpinlifeMedical devicesAEA Investors, Ares Capital and LLR PartnersNumotion
R-HealthPrimary careAlta Partners, Greenspring Associates, New Enterprise AssociatesEverside Health
Protagen Protein ServicesBiopharmaceuticalsAmpersand Capital PartnersGeneWerk
LakePharmaMedical suppliesAuburn Hill Capital, GTCR, HarbourVest Partners and The Carlyle GroupCuria
The Moran CompanyHealth consultingBeecken Petty O’Keefe & CompanyHealth Management Associates
Mass Sport and SpinePhysical therapyCalera CapitalBay State Physical Therapy
Aacres (California & Nevada)Behavioral healthCenterbridge PartnersMentor Network
SL StartBehavioral healthCenterbridge PartnersMentor Network
AspireBehavioral healthCenterbridge PartnersMentor Network
Creative Work SolutionsBehavioral healthCenterbridge PartnersMentor Network
Alpha Home Health and HospiceHospiceChoice Health at HomeColtala Holdings
Cardea Catheter InnovationsMedical devicesCirtec Medical3i Group
MedEvokeHealth care communicationsClayton, Dubilier & RiceHuntsworth
Just For You! Personal Support ServicesHome healthCoppermine CapitalAccord Services
Vestrum HealthEHRCorEvitasAudax Group, Ardan Equity Partners and Oaktree Specialty Lending
US MedMedical suppliesCourt SquareAdvanced Diabetes Supply
OnDemand VisitTelehealthEnhanced Healthcare PartnersPriority Ambulance
SimpleLTCHealth techGI Partners and TA Associates ManagementNetsmart Technologies
Integrity HospiceHospiceH.I.G. CapitalAgape Care South Carolina
Silverado Hospice (Des Plaines)HospiceH.I.G. CapitalSt. Croix Hospice
CNS HospiceHospiceH.I.G. CapitalSt. Croix Hospice
Talon Healthy IT ServicesPractice managementHCTec PartnersClaritas Capital and Snow Phipps Group
Signal Home Health CareHome health & hospiceHealth Enterprise Partners and SV Health InvestorsJet Health
Community Care SystemsHome healthHelp at HomeWellspring Capital Management, Centerbridge Partners and Vistria Group
Heart Imaging TechnologiesHealth techHG Capital (UK) and Ardan Equity PartnersIntelerad Medical Systems
Walden Behavioral CareBehavioral healthLevine Leichtman Capital Partners and Monroe CapitalMonte Nido & Affiliates
Health DecisionsHealth consultingMetalmark CapitalPremier Research Group
Professional Eye Care Associates of AmericaEye careNautic PartnersHealthy Eyes Advantage
FlexanMedical suppliesNew Mountain CapitalILC Dover
Oakland Ophthalmic SurgeryEye carePartners GroupEyecare Partners
The Dawson GroupRevenue Cycle ManagementPlexus Capital, Eagle Private Capital and 424 CapitalCoronis Health
MDTechPractice managementProvidence Strategic Growth, Costella Kirsch, Sixth Street Partners and Silver LakeEverCommerce
MDoutlookHealth techRenovus Capital Partners and The Riverside CompanyClinical Education Allianc
Philips (Aging and Caregiving Business in Framingham, Massachusetts)Senior careRockbridge Growth Equity, Onex Falcon and Rock VenturesConnect America
AquaGuardMedical suppliesRoundTable Healthcare Partners and Dempsey VenturesTIDI Products
Medical SavantRevenue Cycle ManagementSanaka Group and The Carlyle GroupCorroHealth
Aspire Treatment & Recovery CenterBehavioral healthShore Capital PartnersBrightView
Luma DentistryDental servicesSilver Oak Services PartnersRedwood Denta
CIOX HealthHealth techSixth Street Partners, The Goldman Sachs Group, Cigna Ventures, Transformation Capital, Flex Capital and Johnson & Johnson InnovationDatavant
Olin Dental GroupDental servicesSun Capital PartnersSimply Beautiful Smiles
HealthcareSourceHealth techSymplrClearlake Capital Group, SkyKnight Capital and Ares Management
Titan Medical ManufacturingMedical devicesThe Jordan CompanyArch Global Precision
Doctors Scientific OrganicaSupplementsTrilogy Capital GroupBonne Santé Group
InfuCare (Home Infusion Pharmacy)Pharmacy servicesTriton Pacific Capital Partners and ACON InvestmentsBioMatrix Specialty Pharmacy
Tender Care HospiceHospiceVistria GroupMission Healthcare
Hands of Hope Home Health HospiceHospiceVistria GroupMission Healthcare
Sun Tree Home Health & HospiceHospiceVistria GroupMission Healthcare
Healthy Living NetworkHome healthVistria GroupMission Healthcare
Vetrun (Universal Splint product line)Medical suppliesWater Street Healthcare PartnersCombat Medical
Foundation Radiology GroupDiagnostic imagingWellspring Capital ManagementRayus Radiology
Sand Lake ImagingDiagnostic imagingWellspring Capital ManagementRayus Radiology
The Radiology Research InstituteDiagnostic imagingWellspring Capital ManagementRayus Radiology
Concerted Care GroupBehavioral healthWindRose Health Investors and Inclusive Capital PartnersKolmac Outpatient Recovery Centers
VeraSciClinical assessments WIRB-Copernicus Group











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