Waud Capital Partners
Owns behavioral health facilities and substance abuse treatment centers.
PE-OWNED
Acquired by Bain Capital2019-09-12
What Made It Great
Specialized behavioral health and addiction treatment services
What PE Will Likely Do
Waud Capital Partners will likely cut staffing at their behavioral health and addiction treatment facilities, replacing registered nurses (RNs) with less-skilled licensed practical nurses (LPNs) or nursing assistants to reduce labor costs.
Waud Capital Partners will likely sell the real estate of their treatment centers and then lease the facilities back, extracting equity for their investors while increasing facility rental costs.
Waud Capital Partners will likely aggressively code for higher-reimbursement procedures and diagnoses, even if they do not accurately reflect the care provided, in order to maximize insurance reimbursements.
Waud Capital Partners will likely eliminate unprofitable but essential services like psychiatric care or specialized addiction treatment programs in order to improve their bottom line.
Expected Timeline
“0 to 6 months months”
Waud Capital Partners will likely make cosmetic changes and announce 'optimization' efforts, while shuffling the leadership team.
“6 to 12 months months”
Staffing cuts will begin under the guise of 'efficiency' programs, and Waud Capital Partners will review their service offerings to identify potential cuts.
“12 to 24 months months”
Patients at Waud Capital Partners' facilities will likely notice a decline in service quality, with longer wait times and less personalized care.
“24 to 36 months months”
Major issues are likely to emerge, such as the closure of certain treatment departments or high-profile quality scandals.
“36+ months months”
Waud Capital Partners' facilities may face potential bankruptcy, closures, or be sold off to another operator at a steep discount.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Patients and families should be vigilant for any changes in the quality of care, staffing levels, or available services at Waud Capital Partners' facilities.
Consumers should research alternative behavioral health and addiction treatment options in their area that are not owned by private equity firms.
Patients should advocate for maintaining high-quality, evidence-based care and resist any attempts by Waud Capital Partners to cut corners or compromise on essential services.
Alternatives
Community-focused healthcare
Integrated managed care consortium