Behavioral Health

The behavioral health industry is rapidly evolving. From adhering to new regulations to supportive housing developments, our dedicated cross-disciplinary team has a rich understanding of today’s behavioral health landscape and helps providers stay ahead of the trends and innovations affecting this industry.

Our approach

The behavioral health field is in a state of unprecedented transformation. Recent legislative enactments,  including mental health and substance use disorder-parity laws, as well as the carve-in of behavior health services into managed healthcare plans, are expanding access to behavioral healthcare. And with increased mental health and substance use disorder awareness, it is becoming clear that systematic coordination of patients’ healthcare needs increases access to care and drives significant cost reductions. As a result, integrated care models that include mental health, substance use disorder treatment, and physical health are becoming a priority across the country.

Our Behavioral Health team handles healthcare regulatory work, private equity and M&A transactions, supportive housing transactions and public finance work for healthcare providers and investors.

The work

  • M&A activity is on the rise as market dynamics drive consolidation and acquisitions in the behavioral health sector. Our healthcare M&A lawyers handle transformative deals that include provider affiliations and private equity investments in behavioral health organizations.
  • Integrated healthcare services reduce costs and prevent hospital readmissions, while improving the quality of care. Our healthcare team has extensive experience bringing organizations together under common governance structures and through IPAs and CINs, and helping providers manage risk when negotiating value-based contracts.
  • Behavioral health services and physical health services are integrated and regulated in a variety of ways, including co-location, clinical integration, multiple licensure or “threshold” services, and telehealth. We monitor the trends and maintain regular communication with state agencies.
  • The need for expanded and new facilities correlates with the continued growth in the behavioral health market, and the complex financing options can be difficult for provider and real estate developer clients to navigate. Our Supportive Housing team has led the way on housing development for New York Office of Mental Health and New York Office for People with Developmental Disabilities projects. Our public finance lawyers also routinely assist clients expand their behavioral health capabilities using tax-exempt financings.
  • Our attorneys also have extensive experience assisting nonprofits with changes to corporate governance documents and attorney general approval when necessary.
  • Should litigation arise, we’ll apply our experience working with behavioral health clients in connection with mental hygiene hearings and investigations by the Justice Center for the Protection of People with Special Needs.

We work with

  • Behavioral health providers, including substance use disorder-treatment facilities, eating disorder-treatment providers, and community mental health centers
  • Private equity investors
  • Behavioral health platforms, including digital and telehealth behavioral health platforms and ketamine/psychedelic platforms
  • Health systems and hospitals
  • Clinically integrated networks (CINs)
  • Management companies
  • Federally qualified health centers (FQHCs)
  • Health care IT organizations, including regional health information organizations (RHIOs), health information exchange organizations (HIEs), and electronic health record (EHR) vendors
  • Developmental disabilities providers
  • Real estate developers

Speaking of health law: Digital health equity (podcast)

American Health Law Association | July 12, 2022

Washington, DC Healthcare counsel Sarah Swank joined the podcast to discuss digital health equity as a social determinant of health, legal barriers and opportunities in expanding digital health equity, and the role of health lawyers in the digital health equity debate.

New regulations have potential to remove barriers to care

Behavioral Healthcare Executive | January 17, 2022

New York City Healthcare associate Jena Grady contributed this article outlining the new or proposed federal regulations surrounding behavioral health, and their ability to improve whole-person care delivery by permanently extending the flexibility offered during the COVID-19 pandemic.

ANALYSIS | 42 CFR Part 2 Rules Changes a Welcome Sign for Many Providers

Behavioral Healthcare Executive | July 22, 2020

This story features New York City Health Care associate Jena Grady for her outlook on the Department of Health & Human Services’ Substance Abuse and Mental Health Services Administration’s final rule to 42 CFR Part 2 relating to substance use disorders.

COVID-19 GC Roundtable (podcast)

American Health Lawyers Association | April 01, 2020

In this podcast, Washington, D.C. Health Care counsel Sarah Swank speaks with three hospital general counsel on the front lines of the coronavirus pandemic.

Telehealth and COVID-19

AHLA Speaking of Health Law | March 26, 2020

Washington DC Health Care counsel Sarah Swank appeared on this American Health Lawyers Association podcast to discuss how medical facilities are ramping up telehealth programs in response to the pandemic.


Peter Armstrong Egan

Practice Group Leader, Healthcare

Phone: 516-832-7633

Jena M. Grady


Phone: 212-940-3114

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