Only 20% to 25% of patients that need behavioral health support actually receive care. That means the behavioral health sector offers opportunity and high ROI for investors focused on delivering better outcomes at lower costs.

Terry Wang, Partner at Regal Healthcare Capital Partners, joins host Geoff Cockrell on this episode of The Capital Corner for a discussion on how investors should view opportunities in the behavioral health sector, growth strategies, and what 2023 may look like.

“The most important element here is who is delivering care, really making sure that you're delivering care in a compliant way, in a quality way,” advises Terry. “Even if it may cost more in the short term, it's going to pay off in the long term. There are countless examples of behavioral health companies that have gotten in trouble because they've cut corners.”

Even with the potential for difficult valuations in the current economic climate, Terry predicts lots of opportunity within the behavioral health sector. Once considered “the ugly stepchild” of the healthcare industry, it is now a primary focus for government agencies, healthcare providers, and patients, who are beginning to understand how mental health concerns can impact physical health.

The sector is only just starting to mature, says Terry. Investors that can prove they can deliver better results at a lower cost stand to benefit from the enormous opportunity.

Featured Guest

Name: Terry Wang

What he does: Terry is a Partner at Regal Healthcare Capital Partners. Before that, he was the VP of Operations at CHE Senior Psychological Services, a leading, private-equity backed provider of mental health services to skilled nursing, assisted living, adult day care, and rehab centers. He received a B.S. in Finance and Management from the Wharton School of the University of Pennsylvania, and an MBA from Harvard Business School.

Organization: Regal Healthcare Capital Partners

Connect: LinkedIn

Notes From the Capital Corner

Top takeaways from this episode

★ Focus on delivering better outcomes at lower cost. According to Terry, there are opportunities to invest across the entire acuity spectrum of the behavioral health sector.

★ An underserved market leaves room for organic growth. With behavioral health needs being largely underserved, there’s an opportunity to hire and retain providers, contract with insurance companies, and find ways to market to new patients.

★ Behavioral health assets can have different lifecycle opportunities. Platforms in the sector can progress through different stages as their size and scale changes. Early stage investors can get involved even when platforms are pre-revenue.

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