Behavioral health deal pace is slowing after 2021’s record-breaking year. Overall, the behavioral health sector saw 53 deals in the first half of 2022.
That’s according to data from KPMG LLP, Epstein Becker & Green and FocalPoint Partners. …
But those numbers don’t necessarily tell the whole picture because 2021 was an outlier year.
Prior to 2021, the number of behavioral health deals was steadily increasing. For example, in 2019, there were 49 deals. Meanwhile, in 2020, there were 80 deals. The number of behavioral health deals in 2022 is expected to exceed the deal volume in 2020 by 30%. …
Only about 27.89% of behavioral health needs are met in the U.S., according to the Designated Health Professional Shortage Areas Statistics for Q3 2022. …
Yet analysts predict behavioral health will weather the bear market and continue to have a consistent deal volume.
“We expect stable volume in behavioral health transactions, including deals related to substance abuse, other addiction disorders and basic mental health care, as the demand for all of the foregoing is expanding due to many factors, including pandemic-induced burnout, isolation and depression,” KPMG, Epstein Becker & Green and FocalPoint Partners said in the recent analysis.