Private equity and health insurance plans are often seen as the villains in the healthcare industry. Private equity is criticized for cost-cutting and layoffs, while health insurance plans have a bad reputation for various reasons. However, Steven Gold, an executive partner at Lindsay Goldberg and F3 Partners, believes that private equity has positive impacts on behavioral health that are often overlooked.
Gold argues that private equity helps small mom-and-pop providers stay compliant with regulations and offers them opportunities for bigger paydays when they decide to sell their businesses. While private equity may be seen as a cost-cutting villain, Gold believes that its involvement in behavioral health can actually be beneficial.
In a recent conversation with Behavioral Health Business, Gold discussed the implications of private equity in behavioral health, the challenges of value-based care, and the potential impact of the Trump-Vance administration. He also touched on the deal-making landscape in 2025 and the role of private equity in compliance and regulation.
One of the key takeaways from the discussion was the importance of patience in the healthcare industry. Gold emphasized the need to be cautious in a changing landscape, especially with interest rates fluctuating and valuations remaining high. He also highlighted the potential for new business models and opportunities for growth in outpatient mental health services.
Looking ahead to 2025, Gold sees opportunities for consolidation and innovation in outpatient mental health. He believes there is still room for growth and expansion in the field, particularly for clinicians looking to make a lasting impact. With private equity as a financial sponsor, there are new possibilities for clinicians to sell their practices and ensure a smooth transition for their patients.
Overall, the conversation with Gold shed light on the complex dynamics of the healthcare industry and the role of private equity in shaping the future of behavioral health. While challenges remain, there are also opportunities for growth and innovation in the years to come.
