New Report Examines the Growing Importance of Revenue Cycle Management in an Evolving Behavioral Health Industry

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Apr 01, 2024, 16:45 ET

The BGL Healthcare & Life Sciences Insider: The State of RCM in Behavioral Health

LOS ANGELES, April 1, 2024 /PRNewswire/ -- Behavioral health focused revenue cycle management services and software companies are poised for outsized growth, according to an industry report released by the Healthcare Outsourcing & Information Technology investment banking team from Brown Gibbons Lang & Company (BGL).

Download and read the BGL Healthcare & Life Sciences Insider – Behavioral Health and Revenue Cycle Management: https://bit.ly/bglBehavioralHealthRCM

Behavioral health focused revenue cycle management services and software companies are poised for outsized growth, according to an industry report released by the Healthcare Outsourcing & Information Technology investment banking team from Brown Gibbons Lang & Company (BGL).

As many acute care and traditional hospital-based services have been struggling with declining margins and disintermediation from lower cost venues of care, behavioral health has stood out as an area of optimism and growth and has received tremendous venture and private equity growth capital. But, as demand rises for behavioral health companies, many are struggling with payor denials and working capital pressures, leading to growing interest in innovative and impactful revenue cycle services and software solutions.

Inside the report, BGL features insights gathered through a series of exclusive interviews with behavioral health executives who discuss how the industry's revenue cycle needs have transformed. BGL also examines the most important regulatory developments that have shaped the industry, some of the recent consolidation activity that illustrates the increased attention on the sector, and then profiles more than 50 behavioral revenue cycle services and software companies who are helping to transform this sector.

Key highlights include:

Policy changes aimed at improving access to behavioral health services have strengthened demand across the industry
Many providers have experienced recent financial challenges, as surging practice valuation required substantial leverage and payors responded to increased behavioral health volume with more stringent denials
Revenue cycle vendors specializing in autism spectrum therapy, substance use disorder, and broader psychiatric services are innovating around proprietary technology and improvements in workforce efficiency
Initial wave of M&A activity in the behavioral revenue cycle sector is described

BGL's Healthcare Outsourcing & Information Technology investment banking team foresees quality RCM vendors playing an increasingly instrumental role in stabilizing the profitability of behavioral health businesses. We also expect an influx in growth capital invested into early-stage high-potential RCM vendors, with large diverse RCM consolidators, who have historically focused on growth across the traditional acute care industry, to begin evaluating acquisition opportunities among behavioral health RCM services and software platforms.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 35 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.