The behavioral health market has exploded since the COVID-19 pandemic. Investors and provider organizations have paid premiums to grow their behavioral health footprint. But, industry insiders warn that the outpatient behavioral health industry is a tough business. The success stories in the space will likely be the companies keeping their operations tight and demonstrating improved patient outcomes. This drive for operational efficiency will likely translate into companies’ growth strategies as well. With rising interest rates and a tight labor market, many companies have turned to organic growth strategies. Still, there are several smaller tuck-in deals on the table, especially as providers continue to prioritize density in a state market.