Odyssey Behavioral Healthcare Buys Pasadena Villa and Lifeskills

Odyssey Behavioral Healthcare, a partnership between Nautic Partners, LLC and CEO Scott Kardenetz, announced it completed the acquisition of residential/outpatient mental health and addictions treatment providers Pasadena Villa (TN, FL) and Lifeskills South Florida (FL). Screen Shot 2015-08-22 at 9.23.56 AM

Odyssey, headquartered in Brentwood, TN, was formed to build a diverse platform of behavioral healthcare facilities across the treatment spectrum in psychiatric and addiction care.  Scott Kardenetz is a 25-year veteran with former leadership positions at Ardent Health Services, Psychiatric Solutions and Universal Health Services. Nautic and Odyssey plan to invest $50 million of equity capital to support its strategy of growth.

Behavioral Health mergers and acquisitions experts expect this trend to continue, with a growing emphasis on the development of a full continuum of services and settings which promises to be an even bigger market than the strictly luxury-leaning residential programs that historically been the focus of consolidation. 

About Odyssey Behavioral Healthcare

Odyssey Behavioral Healthcare was formed in 2015 as a partnership between Nautic Partners and Scott Kardenetz. Odyssey’s treatment centers include Pasadena Villa and Lifeskills, which provide adult residential treatment care in three primary facilities and outpatient care in Tennessee and Florida. Odyssey will seek to expand the platform through new development and acquisition. In developing its platform, Odyssey seeks to acquire and develop treatment facility leaders in their therapeutic niche and that can benefit from senior management leadership and support.

Acadia Healthcare Set to Buy Belmont Behavioral Health

Acadia Healthcare announced an agreement to purchase Belmont Behavioral Health located in Philadelphia, Pennsylvania. Belmont is part of the not-for-profit Einstein Healthcare Network

Upon completion, the sale totaling $145 million, will include all inpatient and outpatient programs and support departments on the campus of Belmont Center for Comprehensive Treatment, a 147-bed facility located at 4200 Monument Road; Belmont Northeast, located at 10360 Drummond Road; and the Community Outpatient Program for the Elderly (COPE) Germantown Outpatient Program, located at One Penn Boulevard. 

Acadia is a provider of inpatient behavioral health services. Acadia operates a network of 224 behavioral health facilities with approximately 9,000 beds in 37 states, the United Kingdom and Puerto Rico. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

 

Muir Wood Expands… Reaching for Alta Mira Recovery

Scott Sowle, the founder and executive director of Muir Wood Adolescent & Family Services (Sonoma County, CA) teamed up with private investors to acquire the residential and outpatient addiction and co-occurring disorders treatment organization from Constellation Behavioral Health. Constellation Behavioral Health operates Alta Mira Recovery Programs in California.

Muir Wood will operate as a stand-alone program focused on youth treatment, run by founder and executive director Scott Sowle. They will be expanding their residential treatment capacity by adding a residential campus for adolescent girls program. Constellation Behavioral Health operates Alta Mira Recovery Programs in California. Muir Wood will expand its residential treatment capacity for young males from its present 6 beds to 10. The adolescent male program, housed on a six-acre campus, includes weekly family programming, experiential therapies, and an accredited academic program.

Elements Behavioral Health Expanding

Elements Behavioral Health has been actively expanding as evidenced by the purchase of  Park Bench Group Counseling in New Jersey and the opening of Brightwater Landing in Pennsylvania right outside Harrisburg and Hershey.

Elements portfolio are also ramping up programs to meet increased market demands. Centers in Texas and Tennessee are adding new services, and a detox program in Florida launching in the first quarter of the year.

On The Market?

Within all this activity, observers are reporting that Elements is for sale. Reuters reported in December 2014 that private equity and venture capital firm Frazier Healthcare is potentially looking to sell Elements, and that  investment bank Jefferies Group LLC has been retained to facilitate the next steps. Across the entire industry, valuations are up, and the market is ripe for activity.

Elements has been estimated to be worth $30 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) and get 10x more in actual negotiations.

Acquisitions!

Founded by two clinicians in 2006 the newly acquired Park Bench in New Jersey provides day treatment and intensive outpatient services, including an individualized aftercare program (…often a big missing piece in substance abuse treatment).

Elements was targeting the Northeast for some time, particularly in the New York/New Jersey Tristate area because of population density and the need for young adult treatment. The services they’re providing, which are addiction and co-occurring disorders, fit with the Elements family of programs.

Elements has an existing property in York, Pa., and this month, it added a new location, Brightwater Landing in Lancaster County – west of Philadelphia. The center is on a 150-acre campus that lends itself to treatment interventions that require more outdoor space as well as landscape features appropriate to experiential and adventure-based therapies.

Treatment at Brightwater will include equine therapy and a ropes course to enable clients to process the emotional and behavioral parts of their addiction. The experiences will address not just the substance-use disorders but also the underlying trauma that contributes to using. The center will offer primary psychiatric and active mental health models of care – early on-ramp for those seeking treatment for the first time. 

Elements Behavioral Health is part of a trend within the industry where small mom and pop outpatient and treatment centers built over the last few decades are being gobbled up by some big players. We expect more merger and acquisition activity in 2015.