Oak HC/FT led funding, joining Polaris Partners and F-Prime Capital, with focus on driving expansion of projects and coverage
New York, New York (June 30, 2016) – US HealthVest (USHV), a developer and operator of behavioral health facilities, today announced it has secured $50 million in a Series B funding round. Oak HC/FT, a leading venture-growth equity fund investing in healthcare services technology companies, joins founding investors Polaris Partners, F-Prime Capital Partners and Richard A. Kresch, M.D. in this funding round to directly enable the company to further expand its coverage.
Bringing psychiatric and substance abuse care to underserved communities, USHV hospitals develop an array of specialized programs in response to community need and partner with existing medical providers to expand services and improve access to care.
“US HealthVest strives to be the most innovative behavioral healthcare company and has redefined the psychiatric hospital space,” says Richard A. Kresch, M.D., President & CEO of US HealthVest. “De novo strategies and acquisitions of operating facilities with unrealized potential are the core of the US HealthVest business model. Each hospital is structured to offer multiple service lines in order to serve the needs of specific patient population groups.”
The funding comes as USHV continues to actively work to evaluate acquisitions and de-novo opportunities and to assist with optimal debt structuring for on-going construction projects. USHV operates in a $16 billion sub-segment of behavioral health with meaningful supply-demand imbalance due to a 42% decline in psychiatric hospital beds over the last two decades.
“Expanded mental health coverage due to the ACA and CMS' recent decision to lift the IMD exclusion are increasing demands,” according to Andrew Adams, General Partner at Oak HC/FT. “US HealthVest is led by a proven management team that has worked together for over 20 years, operating 14 successful hospitals including 5 de-novos across three companies. We are confident in USHV’s ability to continue providing high quality care to its patients as the company grows."
USHV identifies communities with unmet demand and/or Certificate of Need (“CON”) processes and seeks to acquire undermanaged, or build de-novo, inpatient psychiatric hospitals. Across its facilities, USHV provides inpatient, partial hospitalization, intensive outpatient, medication management, residential treatment and academic programs for adults and adolescents. The Company was founded in 2013 by Dr. Kresch, formerly Founder & CEO of Ascend Health Corporation and Heartland Health Developments.
About US HealthVest
US HealthVest is a leading provider of behavioral healthcare services. US HealthVest operates Chicago Behavioral Hospital and is developing hospitals near Atlanta and Seattle. Accredited by The Joint Commission, US HealthVest’s hospitals provide specialized psychiatric care to patients with a full range of inpatient and day hospital services for children, adolescents, adults and seniors. For more information, please visit www.ushealthvest.com.
About Oak HC/FT
Oak HC/FT (http://oakhcft.com/) is the premier venture growth-equity fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). We are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders.
About Polaris Partners
Polaris Partners invests in exceptional technology and healthcare companies across all stages of their life cycles. With offices in Boston, San Francisco, and Dublin, we partner globally with an unparalleled network of repeat entrepreneurs, top scientists and emerging innovators who are making significant contributions in their fields and improving the way in which we live and work. www.polarispartners.com
About F-Prime Capital Partners
F-Prime Capital (formerly Fidelity Biosciences) is a global venture capital firm investing in life sciences, healthcare and technology. F-Prime has worked closely with entrepreneurs and academics to create innovative solutions to some of the world’s most significant challenges in healthcare and technology.
Media Contacts:
Richard A. Kresch for US HealthVest, 212-243-5565, rkresch@ushealthvest.com
Erica Sunkin for Oak HC/FT, 212-729-2126, erica.sunkin@edelman.com