We believe the outpatient mental health industry is growing rapidly, due to heightened awareness and social acceptance of mental health issues and healthcare reform, most notably the Mental Health Parity Act, expanding eligibility and coverage for mental health care. The industry is highly fragmented with over 50,000 psychiatrists, most working solo or in small groups. New Harbor believed that over time, the importance of integrating behavioral health and physical health would drive demand for behavioral health services and provide an environment for rapid growth.
Community Psychiatry was founded in 1995 by practicing psychiatrist Dr Mark Levine. In July 2015, New Harbor partnered with founding physician, Dr. Mark Levine, to create one of the nation’s leading practice management businesses serving outpatient mental health providers. The business provided back-office and administrative support services to 35 affiliated psychiatrists in Northern California.
“We are committed to improving and simplifying access to mental healthcare services. Our partnership with New Harbor and their expertise have been essential in supporting the fast-growing, high-quality service at Community Psychiatry.”Dr. Mark Levine
Community Psychiatry Management, Founder and Chairman
New Harbor’s investment plan was to build a market leader – both in size and quality. The investment management plan focused on adding affiliated psychiatrists – via affiliations and de novo office openings – and to expand into adjacent services such as therapy and TMS. In addition, New Harbor sought to build the back-office and administrative support capabilities, including hiring a professional management team and investing in financial, EMR and telemedicine systems.
Community Psychiatry grew rapidly under New Harbor’s ownership. The company more than tripled in size, growing to over 100 clinicians across 44 locations throughout Northern and Southern California. The business also developed robust telemedicine capabilities, as evidenced during the COVID-19 pandemic when the business operated completely on a remote basis.
New Harbor exited its investment in Community Psychiatry in August 2020.