Private equity-backed health care provider BrightSpring is making waves in the industry with its recent divestment of its behavioral health business. The company, known for its care for people with intellectual and developmental disabilities (IDD), has sold its ResCare Community Living service arm to Sevita, another home and community-based care provider, for a hefty $835 million.
The decision to sell off the behavioral service arm was made in order for BrightSpring to refocus on its core markets and improve its revenue and EBITDA performance. Jon Rousseau, chairman, president, and CEO of BrightSpring, expressed his satisfaction with the partnership with Sevita, highlighting the extensive experience Sevita has in the I/DD industry and its ability to provide compassionate care to the community living client population.
BrightSpring’s behavioral health offerings, which include applied behavioral analysis (ABA), mental health services, community living, and a behavioral health pharmacy, have been a significant part of the company’s portfolio. The divested ResCare Community Living business, which has been in operation for over 40 years, provides care for people with IDD across 2,000 residential homes. With expectations to generate approximately $1.2 billion in revenue and $128 million of adjusted EBITDA in 2024, the business serves 14,000 patients through 13,500 employees.
The sale of the ResCare Community Living business is expected to result in a profit of approximately $715 million for BrightSpring after taxes, which the company plans to use to pay down its debts. Sevita, headquartered in Edina, Minnesota, and formerly known as the MENTOR Network, specializes in providing in-home and community-based care for adults and children with IDD, autism, complex care needs, and other conditions. With approximately 45,000 employees, Sevita is dedicated to improving the lives of those who rely on their services daily.
The deal between BrightSpring and Sevita is aimed at streamlining BrightSpring’s offerings, increasing operational efficiency, refining its payer mix, and improving clinical integration and business synergy. By maximizing exposure to its target markets, including home health, rehab, primary care, hospice, and specialty home and community pharmacy, BrightSpring hopes to see significant growth in its core business areas.
This divestment in the behavioral health space is part of a larger trend in the industry, with other providers also making strategic moves to focus on their primary business. The recent sale of Amwell’s virtual psychiatric business to Avel eCare for $21 million is another example of this trend. Additionally, several other deals in the behavioral health space have taken place in 2025, including Oceans Healthcare’s acquisition of Haven Behavioral Healthcare and Iris Telehealth’s acquisition of innovaTel, a division of Quartet Health.
Overall, the divestment of BrightSpring’s behavioral health business marks a significant shift in the company’s focus and strategy, allowing them to concentrate on their core markets and drive growth in their primary business areas. With Sevita’s expertise and commitment to quality care, the acquisition of ResCare Community Living is poised to benefit both companies and the individuals they serve in the community.
