Distance Learning

Private Equity Interest in Behavioral Health - On Demand Recording

Recorded On: 04/09/2019

Time: 90 minutes
Session Format: On Demand Recording
CLE Credit Available:  No

For on-demand webinar recordings, streaming access is available for 12-months from the date of the live webinar.  After 12-months, on-demand webinar recordings are available through the AHLA Health Law Archive.

Topics covered will include:  

  1. What is driving this anyhow?  The greater interest and focus in behavioral health generally will be explained by David Weil of Quorum Health.  With the proliferation of parity laws, Medicaid reforms and waivers and the opioid crisis, there has been in increased effort on the part of both governmental and private payers.  Accountable care organizations, clinically integrated networks and population health management initiatives are causing hospitals and systems to pay more attention to integrating behavioral health solutions into their collection of service line offerings.  A largely fragmented market, a staggering demand for behavioral health services, increased funding and opportunities to streamline services, improve services and outcomes and more effective margins are driving the interest of private equity firms.
  2. Why behavioral health?  What does private equity care about?  The present and future private equity investment in behavioral health will be discussed from the private equity professional’s perspective by T. Rudsenske of Cain Brothers.  Mr. Rudsenske will cover the general interest in the sector and specific subsectors of interest, such as psychiatric hospitals, institutions for mental disease and substance use disorder treatment facilities, key factors used by private equity firms to evaluate prospective investments, sector-specific variations in transaction structures, risks and other factors, what firms are active in the sector and predictions for the future.
  3. What value can the lawyer add?  Critical structural and legal issues in private equity transactions will be covered by Justin Watkins of Drinker Biddle.  These will include governance and control, the regulatory landscape, key areas of focus in the due diligence process, post-closing liability concerns, particularly representations and warranties insurance and fraud, and the exit strategy.
  4. What story can you tell me to make this real, to make sense to me?  A case study will be presented by Laura Ashpole, General Counsel, of Community Psychiatry and John Pircon, Principal at New Harbor Capital.  We will learn about the history of Community Psychiatry and the services provided, the background of New Harbor Capital and their interest in health care and particularly behavioral health care, the structure and terms, governance and management/partnership approach related to the investment by New Harbor Capital and operation within the private equity structure.

Level of Difficulty: Intermediate

  • AHLA Member: $99
  • Non-AHLA Member: $149

Content Lead:

  • Behavioral Health

Partner(s):

  • Business Law and Governance

David A. Weil, JD, MBA

Vice President

Quorum Legal Services
Quorum Health Resources,
Brentwood, TN
Bio

Todd Rudsenske

Managing Director

Cain Brothers
Bio

Justin J. Watkins

Partner

Drinker Biddle
Philadelphia, PA
Bio

Laura Ashpole

General Counsel

Community Psychiatry
Sacramento, CA
Bio

John Pircon

Principal

New Harbor Capital
Bio