Adolescent and young adult behavioral health provider Newport Healthcare has announced the acquisition of pediatric mental health provider PrairieCare. Terms of the deal were not disclosed.
PrairieCare brings nine Minnesota locations to the deal. Its services include mental health screenings, clinical services, inpatient psychiatric hospital, intensive outpatient programs (ICU), partial hospitalization programs (PHPs), and hospice services.
This acquisition comes at a time when demand for youth and adolescent mental health services is soaring. In fact, about half of teens in the U.S. have experienced a mental health disorder at some point in their lives, according to the Office of Population Health Affairs (OASH).
“Individuals and families struggle to find appropriate, available mental health care. PrairieCare's outstanding reputation and clinical sophistication complement our existing services,” said Joe Procopio, CEO of Newport. “Through a combination of growth and acquisition, we are expanding access to treatment with a full continuum of care, creating more opportunities to positively impact countless lives. The acquisition of PrairieCare will consolidate Newport's growing presence in Minnesota and create a hub for youth psychiatric services in the Midwest.
Founded in 2008, Newport Healthcare treats patients ages 12 to 18 living with depression, anxiety, eating disorders, trauma and substance abuse. It offers both residential and outpatient treatment programs.
The provider now works in 15 metro areas across 11 states. Like PraireCare, Newport also has operations in Minnesota.
In 2021, private equity firm Onex Partners agreed to acquire a majority stake in Newport Healthcare. This deal gave Onex 60% ownership of the company. At the time of the announcement, PE Hub reported that Newport Healthcare was valued at approximately $1.3 billion.
This isn't the only acquisition this year focused on youth and young adults.
Over the summer, behavioral health provider Mindpath announced the acquisition of Acacia Counseling and Wellness, a virtual and outsourced behavioral health provider specializing in college students.
In addition, private equity firm Vistria Group made an investment in Sandstone Care, a provider focused on youth behavioral health services.
New funding from the federal government could make this an ideal time for investors and providers to bet on youth behavioral health. In July, the Biden administration pledged nearly $300 million to expand mental health services in schools.
