The Vistria Group, a leading private equity investor in healthcare, is making significant strides in youth mental health investments with its recent acquisition of Sandstone Care. Known for its active role in home health and hospice care, Vistria is now focused on expanding its footprint in behavioral health, particularly for young people. Sandstone Care operates treatment centers in Colorado, Maryland, and Virginia, providing specialized behavioral health services to adolescents and young adults.
This move reflects Vistria’s growing commitment to youth mental health investments, highlighted by its pledge of $250 million over three years to fund U.S. providers that serve this vulnerable population. Sandstone Care, valued at over $200 million in the deal, offers programs for depression, anxiety, trauma, substance abuse, and co-occurring disorders among youth.
Responding to a Growing Crisis in Youth Mental Health
The need for expanded youth mental health investments is urgent. According to CDC data from 2021, over a third of high school students experienced poor mental health during the COVID-19 pandemic, with 44% reporting persistent feelings of sadness or hopelessness. Substance use disorders have also risen sharply among young people in recent years.
Vistria’s Partner Jon Samuels stated, “The mental health crisis among youth is escalating across the nation, and it’s become increasingly imperative for the private sector to step up and help address it.” This sentiment echoes the U.S. Surgeon General’s call to action at the 2022 Youth Mental Health Summit, emphasizing the need for coordinated efforts backed by private capital.
Strategic Role of Youth Mental Health Investments in Behavioral Health
Vistria’s investment in Sandstone Care is part of a broader portfolio that includes behavioral health assets like Behavioral Health Group and Sevita, as well as home care and staffing companies. However, Sandstone Care directly represents Vistria’s ambitions to scale youth mental health investments in a critical and underserved sector.
By providing clinical services designed specifically for adolescents and young adults, Sandstone Care exemplifies how strategic youth mental health investments can drive improved access and outcomes. The company’s focus on integrated behavioral health and substance use treatment is especially important as mental health challenges and substance abuse increasingly intersect.
Why Youth Mental Health Investments Matter Now
Surgeon General Vivek Murthy underscored the severity of the youth mental health crisis in a recent advisory: “Even before the pandemic, an alarming number of young people struggled with feelings of helplessness, depression, and thoughts of suicide — and rates have increased over the past decade.”
The pandemic intensified these challenges, disrupting daily life and support systems. Murthy noted, “The future wellbeing of our country depends on how we support and invest in the next generation.” Vistria’s youth mental health investments represent a critical step toward meeting that challenge through private capital mobilization.
Conclusion
The Vistria Group’s expansion into youth behavioral health via Sandstone Care demonstrates how private equity can play a vital role in addressing the national youth mental health crisis. Their continued commitment to youth mental health investment will help scale services that meet the complex needs of young people facing depression, trauma, anxiety, and substance use disorders.
As demand for youth behavioral health services grows, strategic youth mental health investment like this one will be essential to building a stronger, more responsive care ecosystem. Vistria’s ongoing efforts highlight the importance of mobilizing resources to support the next generation’s mental health and wellbeing.
