LifePoint Secures Foothold in Behavioral Health and Signs US Behavioral Partner Agreement
Healthcare system LifePoint Health is expanding its behavioral health footprint after completing the acquisition of US Behavioral Partners, Springstone’s operating company.
The acquisition, first announced in August, will add 18 behavioral hospitals and 35 outpatient locations in nine states to Lifepoint’s network. It also signals that LifePoint is redoubling its efforts in behavioral health.
“We recognize that there is a widespread and urgent need to expand access to behavioral health services, and both Lifepoint and Springstone share a commitment to providing quality, compassionate behavioral health care to communities across the country,” David Dill, Chairman and Lifepoint Health’s chief executive officer said in a statement. “By continuing to expand Lifepoint’s behavioral health platform, we have the opportunity to strengthen the continuum of care, bring more services to our communities, better support hospitals and providers, and improve the overall health of patients across the country.”
LifePoint is a Tennessee-based healthcare provider with more than 50,000 employees. It has 62 community hospital campuses, more than 50 rehabilitation and behavioral hospitals, and 200 acute rehabilitation, ambulatory care, and post-acute care sites.
LifePoint is owned by private equity firm Apollo Global.
In 2021, private equity firm Welsh, Carson, Anderson & Stowe (WCAS) sold Springstone Inc. to REIT Medical Properties Trust Inc. (NYSE: MPW) for approximately $950 million. At that time, $750 million was committed to acquiring Springstone facilities, with $200 million in debt financing to Springstone’s operating company, US Behavioral Partners.
LifePoint’s acquisition of US Behavioral Partners is valued at approximately $250 million, according to previous reports. As part of the agreement, LifePoint Health paid the Medical Properties Trust $200 million to settle interest on its debt, as announced in a previous press release.
Medical Properties Trust will continue to retain a minority interest in the company.
This isn’t LifePoint’s only acquisition in the behavioral health space. In January, the company announced the acquisition of Cornerstone Behavioral Health El Dorado.
The company also acquired Louisville, Kentucky-based Kindred Healthcare in 2021. Kindred Healthcare was a specialty hospital provider with a behavioral health division.
“Joining Lifepoint is a very positive step for Springstone, our team and the people we serve,” Philip Spencer, CEO of US Behavioral Partners, said in a statement. “Our companies have long shared a common goal of providing best-in-class behavioral health services to the communities we serve.”