HCAP Partners Leads Formation of PAX Health

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HCAP Partners, along with healthcare executives DeSena and Leitstein, acquires BMA, WCPN, and Reservoir Health to form PAX Health, creating a major behavioral health business in the Northeast U.S. with a focus on expanding access to care for underserved populations.
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The acquisition of Behavioral Medicine Associates, Workers Compensation Psychological Network and Reservoir Health by PAX Health, with the backing of HCAP Partners and Hamilton Lane, represents a significant consolidation in the behavioral health sector. This move is indicative of the growing recognition of mental health as a critical aspect of overall healthcare and the increasing demand for services in this area. The integration of these companies under PAX Health aims to create a larger platform that could potentially offer a more comprehensive range of services to underserved populations, such as those on Medicaid or requiring workers' compensation.

From an investment perspective, this consolidation could lead to operational synergies and cost efficiencies. The focus on telehealth and in-person delivery systems expansion, alongside the proprietary Gainful Jobs Approach™, suggests a strategy to enhance the company's service offerings while also improving job quality for healthcare professionals. This could lead to increased employee satisfaction and retention, which is particularly relevant in the healthcare industry where burnout is common.

However, the long-term success of such a consolidation will depend on effective integration of the different companies' operations and cultures, as well as the continued demand for behavioral health services. Investors should monitor the company's ability to scale its services and maintain high-quality care during the expansion.

The expansion of PAX Health's services through these acquisitions is a response to a significant gap in the U.S. healthcare system, particularly in mental health care for underserved populations. The strategic investment by HCAP Partners aligns with a broader trend of impact investing, where the emphasis is on generating social as well as financial returns.

Policy-wise, the increased access to mental health services for Medicaid and workers' compensation patients addresses a critical need. The Affordable Care Act and other healthcare reforms have increased the number of individuals with insurance coverage, but access to mental health services remains limited for many, particularly in underserved areas. By scaling telehealth services, PAX Health is likely to improve access to care, which could lead to better health outcomes and potentially reduce overall healthcare costs by preventing more severe health issues that result from untreated mental conditions.

It's also worth noting that the focus on enhancing job quality and supporting healthcare professionals could have broader implications for healthcare policy, as it may set a precedent for other companies to follow, contributing to a more sustainable healthcare workforce.

The behavioral health market is experiencing a surge in demand, driven by increased awareness and destigmatization of mental health issues. The move by PAX Health to consolidate and expand its services in the Northeastern U.S. is strategically positioned to capture a significant share of this growing market. By offering a full continuum of care, PAX Health is likely to attract a wide range of patients, including those with complex needs that may have been previously underserved.

Market trends suggest that telehealth is a rapidly expanding sector within healthcare, with the COVID-19 pandemic accelerating its adoption. PAX Health's investment in telehealth infrastructure positions it well to meet the expectations of modern healthcare consumers who are increasingly seeking convenient and accessible care options. The emphasis on job quality improvements could also enhance PAX Health's employer brand, making it an attractive place to work for top talent in the field, which in turn could improve service quality and patient satisfaction.

While the terms of the investment were not disclosed, the involvement of a significant co-investor like Hamilton Lane adds credibility to the transaction and could signal confidence in PAX Health's growth trajectory. This could have a positive influence on the market's perception of the company's value and its potential for future profitability.

Buyout and integration of three behavioral health companies will extend comprehensive quality mental health services for underserved populations and create quality jobs

SAN DIEGO--(BUSINESS WIRE)-- HCAP Partners, a California-based private equity firm and nationally recognized impact investor, alongside seasoned healthcare executives Anthony DeSena and Roy Leitstein, today announced the acquisitions of Behavioral Medicine Associates (BMA), Workers Compensation Psychological Network (WCPN), and Reservoir Health, merging under PAX Health (PAX). The combination of the three businesses under the PAX Health umbrella creates one of the largest behavioral health businesses in the Northeastern U.S. and allows PAX to extend the full continuum of care to patients. HCAP’s Tim Bubnack, Brian Kinsman, Stefan Okhuysen, and Ben Consoli led the transaction. Funds managed by leading private markets investment management firm, Hamilton Lane (Nasdaq: HLNE), joined HCAP in the transaction as a co-investor. Terms of the investment were not disclosed.

“We’re excited to see the positive impact PAX Health will generate by expanding access to care for the Medicaid, workers compensation, and other patient populations,” said Tim Bubnack, Managing Partner at HCAP. “Historically, these patient populations have been vastly underserved by health systems. It’s an honor to partner with the PAX Health management team, whose values strongly align with HCAP’s commitment to uplifting overlooked communities.”

The acquisitions will support PAX Health’s endeavors to provide crucial support for patients and healthcare providers alike. Even though more than 20% of U.S. adults live with a mental health condition, there are significant barriers to receiving comprehensive care. HCAP’s capital will help scale PAX Health’s telehealth and in-person delivery systems to cater to a diverse range of patient requirements and effectively and efficiently serve patients across the care continuum.

On the provider side, behavioral health medical professionals are often overworked, stressed, and burnt out as demand for their services grows. The PAX Health team is committed to enhancing workflows and patient management to ensure patient loads are manageable for staff and that patients receive quality care. Additionally, HCAP will help accelerate job quality improvements for PAX Health professionals through its proprietary Gainful Jobs Approach™, an impact framework that focuses on career advancement, economic opportunity, diversity, and health and wellness.

“We’re thrilled to partner with HCAP as we expand our footprint and access to mental healthcare,” said Anthony DeSena, CEO of PAX Health. “HCAP’s partnership will help us propel our mission forward and transform the behavioral health field.”

“HCAP is proud to support PAX’s management team as they strive to build a premier provider of tailored solutions for individuals, businesses, and communities seeking comprehensive behavioral health services,” said Brian Kinsman, Senior Partner at HCAP. “PAX Health has demonstrated strong alignment with our core values and a commitment to achieving its growth and business objectives through investing in its workforce.”

More information about the three companies under the umbrella of PAX Health follows:

  • Behavioral Medicine Associates (BMA): Established in 1985, BMA has become a leading provider of behavioral health services for public and private employees in New York. BMA offers a range of services, including psychological assessments, therapeutic interventions, and specialized pain management.
  • Workers Compensation Psychological Network (WCPN): Founded in 1992, WCPN has established itself as a key player in the behavioral health sector, focusing specifically on the workers compensation population in New Jersey. WCPN offers a broad range of services tailored to work-related psychological and mental injuries, such as traumatic brain injury, PTSD, anxiety, depression, chronic pain syndrome, adjustment disorder, and opioid abuse screening, among others.
  • Reservoir Health: Founded in 2020, Reservoir Health is a psychiatric and behavioral healthcare provider currently serving patients New Jersey. Their services include psychiatric evaluations and medication management, where psychiatrists conduct detailed assessments for accurate diagnoses and medication prescriptions. They also offer diverse therapy options, such as individual, group, and couples therapy, catering to various mental health issues like anxiety, depression, and trauma.

About HCAP Partners

HCAP Partners is a diversely owned private equity firm specializing in providing mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $3 million to $25 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 60 companies since its founding and through ongoing, active engagement with portfolio companies provides value-added resources to help optimize performance and increase enterprise value. Through its Gainful Jobs Approach™, the firm has been recognized as an Impact Emeritus Manager, a designation awarded by the ImpactAssets to experienced impact funds that have achieved the Impact Assets 50 designation for more than 5 years. In fact, HCAP has been named an ImpactAssets 50 fund since 2014. HCAP works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. For more information, please visit

About PAX Health

PAX Health is a leading behavioral health company dedicated to providing innovative and comprehensive solutions for mental health and well-being. By combining the strengths of legacy companies Behavioral Medicine Associates, Workers Comp Psych Net, and Reservoir Health, PAX Health aims to revolutionize the behavioral health sector and drive positive change. For more information, visit

About Hamilton Lane

Hamilton Lane is a global private markets investment management firm that provides innovative solutions to sophisticated investors around the world. With deep industry expertise, the firm seeks to create lasting value for its clients, enabling them to achieve their investment goals. For more information, visit

Ro Thompson


Source: HCAP Partners


What companies were acquired to form PAX Health?

Behavioral Medicine Associates (BMA), Workers Compensation Psychological Network (WCPN), and Reservoir Health.

What impact investor is involved in the acquisitions?

HCAP Partners, a California-based private equity firm.

Who are the seasoned healthcare executives involved in the acquisitions?

Anthony DeSena and Roy Leitstein.

What private markets investment management firm joined HCAP in the transaction?

Hamilton Lane (Nasdaq: HLNE).

What impact framework will HCAP use to accelerate job quality improvements for PAX Health professionals?

Gainful Jobs Approach™.

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hamilton lane is an independent alternative investment management firm providing innovative private markets solutions to sophisticated investors around the world. the firm has been dedicated to private markets investing for more than two decades and currently has 250 employees operating in offices throughout the u.s., london, hong kong, rio de janeiro, tel aviv and tokyo. with over $239 billion in total assets under management and supervision*, hamilton lane offers a full range of investment products and services that enable clients to participate in the private markets asset class on a global and customized basis. the firm has been named an inc. 5000 fastest-growing company and a “best places to work in money management by pensions & investments. for more information please visit * as of september 30, 2015