Addiction Treatment Investors Eye Quality, Consolidation for 2027
At Behavioral Health Business' INVEST 2026 conference, executives from Deerfield Management, BayMark Health Services and Bradford Health Services said addiction treatment dealmaking is continuing despite a cautious 2026 market shaped by anticipated Medicaid changes taking effect in January. Deerfield's Moses Adubi said the market has shifted "from a volume story to a quality story," with investors now scrutinizing payer concentration, in-network revenue, care continuums and patient retention before deploying capital. BayMark's Marshal Salomon and Bradford's Justin Adams said buyers in 2027 will favor operators who can demonstrate clinical differentiation and sustained quality outcomes, as the still-fragmented, largely single-site and regional market continues to consolidate. Adubi also flagged continued scrutiny tied to fraud, waste and abuse in the sector heading into 2027.