LifePoint Health Inc., a diversified healthcare operator headquartered in Brentwood, Tennessee, has announced plans to acquire a majority stake in U.S. Behavioral Partners, the management group of Springstone Health Opco. Valued at $250 million, the deal is expected to close in the first half of 2023. This acquisition represents a significant milestone in the behavioral health industry news, as it highlights growing consolidation and investment within a sector that has long been fragmented and underserved.
Deal Details and Financial Structure
As part of the acquisition, LifePoint Health will pay $200 million to satisfy a debt interest held by Medical Properties Trust Inc. (NYSE: MPW), a healthcare real estate investment trust (REIT) that previously held a majority stake in U.S. Behavioral Partners. While Medical Properties Trust will step back from majority ownership, it will retain a minority interest and continue to own the facilities operated by U.S. Behavioral Partners after the deal closes.
This transaction exemplifies a broader trend frequently covered in behavioral health industry news, where healthcare operators and REITs seek to leverage growing demand for behavioral health services by aligning operational expertise with real estate investment strategies.
A History Rooted in Behavioral Health Investment
The journey leading to this deal began over a decade ago. In 2010, the private equity firm Welsh, Carson, Anderson & Stowe (WCAS) invested $100 million in Springstone Inc., the predecessor to U.S. Behavioral Partners. Springstone specialized in creating a network of de novo inpatient addiction and psychiatric hospitals as well as outpatient treatment locations, carving out a foothold in behavioral health services during a period when the sector was relatively nascent.
In 2021, WCAS sold Springstone to Medical Properties Trust in a landmark $950 million transaction. Approximately $750 million of that amount was dedicated to acquiring Springstone’s physical facilities, while $200 million financed the operating company—U.S. Behavioral Partners—managed by Springstone’s leadership. This deal has been widely reported in behavioral health industry news, demonstrating the growing interest of REITs in acquiring healthcare real estate while partnering with experienced operators.
Current Operations and Expansion Plans
Currently, U.S. Behavioral Partners manages 18 inpatient addiction and psychiatric hospitals alongside 35 outpatient sites spread across nine states. LifePoint Health, prior to this acquisition, operated three inpatient behavioral health facilities obtained through its acquisition of portions of Louisville, Kentucky-based Kindred Healthcare.
With this acquisition, LifePoint’s behavioral health portfolio will dramatically expand, encompassing more than 60 behavioral health units located within hospitals and community sites, plus 21 dedicated inpatient behavioral health facilities. This expansion is a prominent topic in recent behavioral health industry news, illustrating how strategic acquisitions are driving growth and reshaping access to behavioral health care services.
Strategic Vision for Behavioral Health Growth
David Dill, chairman and CEO of LifePoint Health, underscored the significance of the deal:
“We are adding the talented team at Springstone, whose depth of experience and operational platform will accelerate our ability to broaden crucial behavioral health services to communities in need.”
This statement echoes a common theme in behavioral health industry news—that the sector’s growth hinges not only on facility expansion but also on integrating high-quality clinical expertise and operational leadership.
Healthcare REITs Increasing Their Behavioral Health Focus
Medical Properties Trust’s decision to retain a minority stake while stepping back from majority ownership reflects a well-established REIT approach: acquiring healthcare companies, managing them for a period, and then separating the operating businesses from the underlying real estate assets. This business model has been the subject of considerable attention in behavioral health industry news as it increasingly applies to behavioral health real estate.
Historically, behavioral health has been an underdeveloped sector for healthcare REIT investment, especially compared to senior housing or skilled nursing. However, the growing demand for behavioral health services and increasing awareness of mental health and addiction disorders have prompted several healthcare REITs to pivot toward this promising niche.
Other REITs making headlines in behavioral health industry news for their expanding behavioral health investments include:
- CareTrust REIT Inc. (Nasdaq: CTRE), which operates 228 senior-focused facilities in 29 states and has partnered with Landmark Recovery to convert select facilities into addiction treatment centers. CareTrust’s CEO David Sedgwick has noted the industry’s fragmentation and immaturity, underscoring the challenges and growth potential in behavioral health real estate.
- Sabra Health Care REIT Inc. (Nasdaq: SBRA), which began seriously exploring behavioral health investments in 2017 and has now committed $800 million toward expanding its behavioral health portfolio, signaling confidence in the sector’s long-term prospects.
- Ventas Inc. (NYSE: VTR), one of the largest healthcare real estate owners in the U.S., which recently acquired a 72-bed inpatient facility operated by Eating Recovery Center for $58 million, further demonstrating investor interest in specialized behavioral health properties.
What This Means for the Behavioral Health Landscape
LifePoint’s acquisition of U.S. Behavioral Partners is a pivotal development frequently highlighted in behavioral health industry news. It signals a maturing behavioral health market, with larger operators consolidating and scaling care delivery systems to meet rising patient demand.
This consolidation promises to enhance patient access, improve care coordination, and raise the quality of behavioral health services. As more operators like LifePoint expand their behavioral health portfolios, the sector can expect increased standardization, better clinical integration, and more comprehensive treatment options.
The Broader Impact on Healthcare and Communities
The growing focus on behavioral health aligns with national priorities to address mental health and substance use disorders, which affect millions of Americans. With enhanced resources and broader geographic coverage, organizations like LifePoint are better positioned to serve communities struggling with addiction and mental illness.
This expansion, covered in depth by behavioral health industry news, offers hope for improved outcomes and reduced barriers to care in areas historically underserved.
Looking Ahead
Although the transaction is still in its early stages, this deal reflects a larger movement detailed regularly in behavioral health industry news—the rising importance of behavioral health services within the overall healthcare ecosystem and the increasing capital flowing into the sector.
As LifePoint integrates U.S. Behavioral Partners’ operations, the behavioral health industry may see new benchmarks for operational efficiency, patient experience, and clinical outcomes emerge. This will likely encourage further investment and innovation in a sector that is finally receiving the institutional attention it deserves.
