Behavioral health M&A saw busy Q3

A total of 10 behavioral healthcare transactions were announced in the third quarter of 2015, according to Irving Levin Associates.

As Behavioral Healthcare has reported, there were two major transactions: Universal Health Services purchased Foundations Recovery Network for $350 million; and Molina Healthcare purchased Providence Service Corporation for $200 million.

With 24 announced acquisitions for the first three quarters of the year, the transaction volume is up 50 percent compared with the first three quarters of 2014, according to Irving Levin Associates. Future expectations include an uptick in new development of inpatient care facilities, and a real estate component that might drive investor interest as well.

According to the Braff Group’s Market Watch, demand for in-network residential programs and programs with medication assisted treatment capabilities is expected to rise. Meanwhile, valuations of high-end residential programs could be under pressure.

Routine earnings calls for Universal Health Services and American Addiction Centers are scheduled for next week.