Behavioral Health Insights
Medication-Assisted Treatment (MAT) is the use of FDA-approved medications, in combination with counseling and behavioral therapies, to provide a “whole-patient” approach to the treatment of substance use disorders, mainly alcohol use disorder (AUD), opioid use disorder (OUD) and opioid overdose prevention. For many years, behavioral health and traditional medicine were partitioned, as were the providers, systems and organizations that attended to them. As a result, behavioral healthcare, especially MAT, has developed as a distinct segment of the healthcare sector with its own challenges, regulatory concerns, reimbursement landscape and operating models.
Substance abuse is a particularly relevant sector of behavioral health in the U.S.; with over 40 million people (12% of the US population) being affected. Prescription drug overdoses have increased 242% since 1999. Approximately 70,000 people died from opioid overdoses in 2020, a rate of 21.4 deaths per 100,000 people which is 38% higher compared to 2019.
|~ $27B||Estimated 2022 U.S. market size for substance abuse and mental health clinics|
|~ 26,058||Estimated substance abuse and mental health facilities in the U.S.|
|~ 301k||2021 estimated employment at substance abuse and mental health facilities in the U.S.|
|3.7%||Annual sector growth from 2021 to 2026P|
|~ $740B||Annual societal cost of drug abuse and addiction (related to crime, lost work productivity and health care)|
The key driver of sector growth over the past several years has been the increase in behavioral health expansion following the healthcare reform and the accompanying growth in government spending for behavioral health. These forces have unlocked demand for behavioral services that have long been constrained by various factors limiting access. AMB expects heavy consolidation in the future as thriving pure-play operators seek to acquire one another to achieve scale and capitalize on operational efficiencies. Furthermore, we anticipate strategic interest as healthcare systems and population health managers seek behavioral health solutions and partnerships.
|January 2022||Center for Behavioral Health Kentucky||Behavioral Health Group|
|December 2021||Strategic Behavioral Health||Summit Behavioral Healthcare|
|September 2021||Cornerstone of Recovery||Bradford Health Services|
|July 2021||Nashville Recovery Center||BRC Healthcare|
|July 2021||Aspire||BrightView Health|
|March 2021||Southcoast Behavioral Health||Footprints to Recovery|
|January 2021||Renew Recovery||BrightView Health|
AMB focuses on lower middle-market healthcare niches where consumerism and fragmentation meet to disrupt traditional healthcare channels. We typically advise companies with EBITDA of $5M to $20M and an average enterprise value of $100M, but will move up and down the spectrum. AMB’s research-oriented approach to business development has resulted in a vast network of strategic and financial sponsor relationships that yield industry leading intelligence and optimal outcomes for our clients.
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