Cain Brothers - Press Release

Behavioral Health Care: Distinctive But Increasingly Mainstream

New York – April 2, 2009

Recent decades have seen a significant shift from public to private sector delivery of mental health services. As a result, mental illness treatment has become increasingly part of mainstream health care delivery, but it also remains very distinctive in many respects. Behavioral health care today is characterized by a broad spectrum of mental illness treatments, including treatments for those with mild and moderate levels of illness; a very large number of general health care and specialty providers delivering services; and mainstream health and disability insurance paying for the majority of the costs of mental health services. On the other hand, the mental health sector remains outside of what one might normally consider mainstream health care in some important ways, with significant direct-funding of programs, particularly for vulnerable populations not well served by public and private health insurance payments.

The latest white paper in Cain Brothers’ Strategies in Capital Finance series, which is titled “Behavioral Health Care: Distinctive But Increasingly Mainstream,” discusses the extremely fragmented nature of the behavioral health care industry and the challenges involved in delivering services to the mentally ill.

Todd Rudsenske, Managing Director of Cain Brothers, said, “Providers and investors seeking to participate in the behavioral health sector will find plentiful opportunities for consolidation, but understanding the tangled web of history and payment system anomalies can also identify attractive investment opportunities.”

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Please visit the Research page on our website to access and download this report or email strategies60@cainbrothers.com to request a printed copy.

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Cain Brothers is an investment banking firm that focuses exclusively on the health care industry. Our clients include providers, payors, medical device and equipment companies, information technology companies, outsourcing companies, and financial sponsors. The firm has one of the largest teams of experienced bankers and capital markets professionals on Wall Street dedicated to the health care industry. Operating out of offices in New York, Chicago, Houston, San Francisco, Atlanta, Indianapolis, Los Angeles, Sarasota, and St. Louis, Cain Brothers creates custom-tailored, market-based solutions for the many strategic, financial, and operating challenges facing its clients. Cain Brothers’ venture capital affiliates, Health Enterprise Partners and CB Health Ventures, invest capital in fast-growing health care service and information technology companies.

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Contact:

Jim Vaughan
212-981-6929
jvaughan@cainbrothers.com