Prosperity Behavioral Health, a startup focused on providing behavioral health financial services, has announced its acquisition of revenue cycle management (RCM) company Elevated Billing. While terms of the deal were not disclosed, the acquisition marks a major step in Prosperity’s growth strategy, opening doors to new markets and expanding its suite of services for behavioral health providers.
Michelle Mullany, CEO of Prosperity Behavioral Health, told Behavioral Health Business that the acquisition reflects the company’s broader goal of becoming more consultative with clients. “Ultimately, we want to be consultative and be able to advise [clients],” Mullany said. “We want to see the shift from being a commodity and very tactical in terms of billing … to a much broader view of how behavioral health financial services and RCM systems really drive the core of the business for any treatment provider.”
Responding to Complexity in Behavioral Health
As the healthcare sector, and behavioral health in particular, grows more complex and value-driven, billing and operational workflows have become increasingly complicated. Providers face evolving payer requirements, new regulations, and growing expectations for efficiency and accuracy. These trends have spurred consolidation and M&A activity among technology partners and service vendors, creating opportunities for companies like Prosperity to integrate complementary behavioral health financial services.
“Adding Elevated helps us service new markets, helps us provide services better and faster,” Mullany said. “And it will help us prove that the model of efficient revenue cycle management is a key component to running any operation.”
The acquisition strategically positions Prosperity in the Mountain region, including Utah and Idaho, expanding access to vital payer data and insights that can inform strategic decisions. “We don’t want just to take bills and submit them to the insurance company,” Mullany said. “We want to be able to look at a facility’s overall revenue cycle and say, ‘We can make improvements in this area.’ We really [want] to be able to inform them on which payers to go in-network with and be a true partner.”
Leveraging Private Equity Investment for Growth
This acquisition follows closely on the heels of a major investment from private equity firm NewSpring Capital. The firm has invested over $1 billion since its founding, supporting more than 200 businesses, with a particular focus on lower-middle-market companies. NewSpring’s healthcare-related portfolio includes InHome Therapy, MacroHealth, RecoverCare, and Sun Behavioral Health, a provider of psychiatric hospital services.
“The capital that we received last year is an accelerator to that,” Mullany explained. “If our goal is really to serve our customers in a better, faster, more comprehensive, efficient way with more data sources, this investment helps us look at different companies and scale and grow more rapidly.”
By combining Elevated’s expertise with the resources provided by NewSpring’s backing, Prosperity is positioned to enhance its behavioral health financial services and offer a more data-driven, consultative approach to revenue cycle management.
Elevated Billing: Expertise in Behavioral Health RCM
Utah-based Elevated Billing Solutions specializes in revenue cycle management for the behavioral health sector, including mental health and substance use disorder providers. Its services encompass verification of benefits, pre-authorization, utilization review, billing and claims management, as well as appeals and denial management.
Jessica Anderson, CEO of Elevated Billing, said the partnership with Prosperity presents a unique opportunity. “We met Prosperity’s leadership and knew right away that together, we could offer clients something special. We are looking forward to the future and are grateful for Prosperity’s support.”
Prosperity’s Expanding Capabilities
Cherry Hill, New Jersey-based Prosperity Behavioral Health has also developed tailored behavioral health financial services for providers. The company offers data and analytics insights, verification of benefits, accounting services, and utilization review. By combining these services with Elevated’s RCM capabilities, Prosperity can provide a full-spectrum, consultative approach that goes beyond simply submitting claims.
Mullany emphasized that the company’s goal is to transform revenue cycle management into a strategic function that drives growth and efficiency for behavioral health providers. “We want to see the shift from being a commodity and very tactical in terms of billing to a much broader view of how behavioral health financial services really drive the core of the business for any treatment provider.”
A Growing Trend in Behavioral Health Financial Services
Prosperity’s acquisition of Elevated Billing reflects a broader trend in the behavioral health financial services sector. As providers and service partners seek to improve operational efficiency and optimize revenue, integrated solutions that combine data, analytics, and billing expertise have become increasingly valuable. Companies like Kareo, which offers electronic health records with billing and managed billing capabilities for behavioral health, illustrate the shift toward comprehensive, consultative solutions.
This is not Prosperity’s first strategic transaction. In 2019, the company merged with Vertex Health Services, another provider of behavioral health financial services. By continually expanding its capabilities through acquisitions and partnerships, Prosperity is positioning itself as a comprehensive partner for behavioral health providers looking to optimize revenue cycle performance, reduce administrative burden, and leverage data-driven insights.
Looking Forward
With Elevated Billing now part of its portfolio, Prosperity Behavioral Health is poised to offer clients enhanced revenue cycle management, advanced analytics, and strategic guidance that extends far beyond traditional billing. The combination of regional expansion, increased access to payer data, and private equity backing positions the company for continued growth and innovation in a complex, evolving behavioral health landscape.
As behavioral health providers navigate increasing regulatory and payer complexities, Prosperity’s consultative, data-focused approach to behavioral health financial services offers a roadmap for operational efficiency, financial health, and long-term sustainability.
