The need for behavioral health and substance use disorder (SUD) treatment services has risen significantly due to the COVID-19 pandemic. Numerous societal and economic factors have contributed to this rise, indicating that the increased demand will be sustained post-pandemic. Such factors include broad-based and media driven efforts to decrease stigma attached to mental illness and substance use disorders, consumers’ growing comfort with, and even preference for, virtual care, an increased demand for evidence-based data that is in turn driving innovation, and employer initiatives and benefits aimed at prioritizing the mental health and wellness of their employees.
One of the more logical synergies of the pandemic and healthcare deal making has been in the behavioral health/SUD space. The pandemic has compounded mental health needs but also highlighted the existing need that was there pre-pandemic. The increased availability of needed therapy, fueled by the Federal Parity law, payers’ increasing focus on care delivery and cost savings in this area, and investor interest has dovetailed with more effective and confidential means of treatment including telemedicine and VMAT (Virtual Medicated Assisted Treatment) for SUD.
Foley’s Health Care attorneys advise Behavioral Health/SUD companies, including telehealth and telepsychiatry, and their investors and lenders in mergers and acquisitions, recapitalizations, buyouts and restructurings as well as advising on a broad range of commercial arrangements. We also bring a unique blend of deep regulatory as well as corporate and finance experience to Behavioral Health/SUD transactions as a result of our significant experience in health and life science deals, both domestic and international.
As lead counsel, we oversee all aspects of the transaction. A fully integrated team delivers a holistic solution to maximize deal value and mitigate risk. We provide a cost-effective, business-focused and results-oriented approach to M&A deals, ensuring that our services match your strategic business goals, strengthen your organizations' effectiveness, and expand your platform reach.
Foley has the market-leading Telemedicine and Digital Health team to help our clients navigate emerging issues in telehealth, telepsychiatry, and VMAT enabling them to provide innovative care for patients in new markets around the block and around the world. By taking advantage of technological advances, our behavioral health and SUD clients have the chance be at the forefront of health care delivery by expanding service offerings and sharing their insight with patients independent of geography. With this opportunity comes challenges, as the laws and regulations struggle to keep up with the pace of innovation. It is critical to consult with a legal services provider with the experience and resources to help you grow your business while managing the evolving issues. Our attorneys have the experience necessary to assist with telehealth program assessment, development, and implementation, hotlines and call centers, and multi-state, web-based health care tools and services. We also are well positioned to provide counsel on operational issues, including payer credentialing, patient verification, and medical record management.
Whether deal counsel or providing regulatory guidance, Foley delivers a comprehensive due diligence analysis providing professional guidance to uncover any risk associated with any potential acquisition, including corporate practice of medicine, Stark, state and federal anti-kickback statutes, antitrust compliance, state licensing requirements related to behavioral health/SUD treatment facilities and modalities, and state surveys.
Foley has the unique ability to manage compliance issues for behavioral health/SUD providers. We help navigate the issues that are unique to these organizations and work with your team to ensure compliance with the ever-changing complex federal and state regulations covering Medicare and Medicaid, False Claims Act and fraud and abuse, payment and reimbursement, licensure, accreditation and certification, HIPAA privacy and confidentiality and more.