#Healthcare

Behavioral Health Technology

As the prevalence of behavioral health conditions and substance abuse has steadily increased, so has the demand for behavioral health services. We believe a steady shortage in providers to address these conditions has created space for technology and tech-enabled solutions to meet rising demands.

LLR is looking to partner with tech-enabled behavioral health providers and technology platforms to help support organic growth and drive improved access to care for those with unmet needs. Companies and intermediaries working in this space should contact PJ Cusack to discuss related investment opportunities.

 

With federal reform on our side, dramatically improved social views on mental health, and capital partners committed to funding the growth of more providers, we have the opportunity to confront this significant and growing unmet need. We’ve been grateful for LLR’s partnership in helping us build out a network of superior hospitals and enhance the quality of life for our patients and their families through compassionate and personalized care.

Steve Page, President and CEO of SUN Behavioral Health, a LLR 4 Portfolio Company

Six Tailwinds Creating Opportunities in the Behavioral Health Market

Labor shortages driving technology adoption

Supply of mental health providers has not kept up the increase in demand for services. 169 million individuals (over one half of the U.S. population) lived in a Mental Health Professional Shortage Area as of December 2023.1

Success of holistic treatment

Holistic treatment programs with full continuums of care have in many cases proven to help drive better outcomes for patients and lower readmissions.

Shifts in care delivery driving innovation

Value-based care and preventative cost reduction are driving integration between mental health and other providers, transforming how they manage members. Providers and health plans are in need of new solutions from third-party vendors to support these new care approaches.

Federal reform

We believe federal reform is driving increased access to care through expanded behavioral health benefits.

Shifting societal views

The need for behavioral health services is expected to continue growing with the increased destigmatization of behavioral health conditions.

Impact of the pandemic on mental health

The long-term effects of the COVID-19 pandemic, the increased use of social media, and other factors are helping to drive individuals to seek care at higher rates than in the past.

The value proposition for behavioral health technology

18.5%
2
of individuals under age 65 with employment-based health coverage diagnosed with any mental health or substance abuse disorder in 2020
200,000+
3
expected shortage of behavioral health professionals by 2036
11%
4
percentage increase in total spend for outpatient behavioral health sites of care in 2013 vs. 2020

See You There?

October 20, 2024
HLTH Conference
Learn More
November 5, 2024
Behavioral Health Tech Conference
Learn More

Get to Know LLR Partners

25 Years of Investing in Technology & Healthcare

  • Founded in 1999, LLR is a growth oriented private equity firm investing in high growth technology and healthcare companies.
  • Raised over $7.0 billion of capital across seven funds.
  • We are focused on organic, topline growth initiatives and complementary acquisitions to help create value for all stakeholders.

Operational Support

  • Leverage best practices developed through codifying successful strategies across our 130+ investments since inception.
  • Access LLR’s Value Creation Team (strategy, talent, GTM, product, finance, M&A) to help accelerate growth.

Focus on Partnership

  • Flexible capital provider (majority or minority ownership).
  • Reward and motivate key players with equity.

Investment Criteria

  • Ability to invest $30 – $150M of equity.
Select Industry Investments

LLR seeks to invest in sectors where our investment experience indicates there are attractive business models and market trends supporting strong growth potential. Here are some of our related investments in behavioral and multi-site healthcare services.

Meet the LLR Team

Scott Perricelli

Scott Perricelli
PJ Cusack

PJ Cusack
Austin Burt

Austin Burt
Will Greenberg

Will Greenberg
Thomas Reinhart

Thomas Reinhart

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Gryphon Investors Acquires Majority Stake in LEARN Behavioral From LLR

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March 2, 2021

LLR Invests in Cloud-based Health IT Innovator Azalea Health

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References

  1. “Behavioral Health Workforce Brief, 2023.” National Center for Health Workforce Analysis, Health Resources and Services Administration (HRSA), 2023. https://bhw.hrsa.gov/sites/default/files/bureau-health-workforce/Behavioral-Health-Workforce-Brief-2023.pdf
  2. Fronstin, Paul and Roebuck, M. Christopher, “Use of Health Care Services for Mental Health Disorders and Spending Trends.” Employee Benefit Research Institute (EBRI), Education and Research Fund, 2022. https://www.ebri.org/docs/default-source/pbriefs/ebri_ib_569_mentalhealth-8sept22.pdf
  3. Fronstin, Paul and Roebuck, M. Christopher, “Use of Health Care Services for Mental Health Disorders and Spending Trends.” Employee Benefit Research Institute (EBRI), Education and Research Fund, 2022. https://www.ebri.org/docs/default-source/pbriefs/ebri_ib_569_mentalhealth-8sept22.pdf
  4. Fronstin, Paul and Roebuck, M. Christopher, “Use of Health Care Services for Mental Health Disorders and Spending Trends.” Employee Benefit Research Institute (EBRI), Education and Research Fund, 2022. https://www.ebri.org/docs/default-source/pbriefs/ebri_ib_569_mentalhealth-8sept22.pdf
Disclaimer:

The information presented herein is intended for an audience of potential LLR portfolio companies and the intermediaries supporting their capital raise processes. Named LLR investments presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives and other quoted parties herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies or reflect the individual’s perspective on the featured industry sector. Such portfolio companies are controlled by investment vehicles managed by LLR. Quoted parties were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company or Senior Operating Advisor roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.