Home / We Buy Psychiatric Hospitals
We buy psychiatric hospitals
other buyers won't touch.
A struggling psych hospital gets fewer real offers than a struggling restaurant. The buyers who understand it won't take the risk, and the buyers who'd take the risk don't understand it. We are the overlap: operators comfortable with distress, capital comfortable with regulation.
01 — The gap
Why nobody bids
Everyone agrees the beds are needed. Nobody wants the building.
Psychiatric capacity is scarce in nearly every market in the country, and a distressed psych hospital still can't find a bid. The reasons are specific:
The chains buy stabilized assets
A facility with survey findings or census trouble fails their committee before anyone visits.
Generalist money walks at the word "licensure"
Staffing ratios, payer enrollment, regulatory exposure. The distressed investors who don't walk usually shouldn't own a hospital.
So the facility bleeds until it closes
A market loses beds it badly needs, and the owner loses everything. That ending is the one we exist to interrupt.
02 — What we buy
Psych, specifically
The psychiatric assets on our list.
Freestanding psychiatric hospitals
Acute inpatient psych in distress: census below breakeven, agency staffing above water line, findings on the last survey, payer terminations pending. Workable, all of it.
Psych units and carve-outs
A unit a health system wants off its books, or a facility caught mid-conversion. Complicated sellers are fine. We have been the complicated seller's counterparty before.
Residential mental health programs
RTCs and residential platforms whose referral engine stalled or whose debt outran the census. The playbook is the one running in our own facilities.
03 — Fair questions
Before you call
What psych owners and boards ask first.
Do you really buy psychiatric hospitals?+
Yes. Freestanding psychiatric hospitals, inpatient psych units, and residential mental health facilities, alongside addiction treatment centers. Distressed psych assets have almost no natural buyers: too regulated for real estate money, too broken for the chains, too complex for generalists. That gap is our business.
What condition does the facility have to be in?+
Any condition. Census below breakeven, agency staffing eating the margin, survey findings, payer terminations, stacked debt: all workable. A healthy psych asset with a motivated seller is simply a faster close. What we need is a licensed facility, a market that wants the beds, and verified access to census, billing, payroll, and the debt schedule.
What happens to the license and the payer contracts?+
They are the asset, and we treat them that way. Change of ownership at a psychiatric facility runs through state filings, CMS and payer re-enrollment, and accreditor notice, each on its own clock. We sequence the deal around those clocks so nothing lapses on the way across.
Can I stay involved instead of selling everything?+
If it makes the deal better, yes. A rollover works for psych the same as for addiction treatment: we take a controlling stake, clear the debt, run the turnaround, and you keep equity in the recovery. The structure gets engineered around the situation, and the written assessment puts numbers on it.