Summit BHC finalized the acquisition today of Seabrook West, situated on 25 acres of land in Pennsylvania. Originally launched in 2008 by the Diehl family who own Seabrook House in New Jersey, the center will operate under a new name: Mountain Laurel Recovery Center.
The deal adds 14 detox beds, 23 residential and 12 transitional beds to the Summit BHC portfolio. Mountain Laurel represents the fifth residential program for the organization and adds to its continuum of care offerings.
“We didn’t have a presence in the Northeast,” Trey Carter, co-founder and CEO of Summit BHC, tells Behavioral Healthcare. “We were getting referrals for our Texas facilities from the Northeast, so part of our strategy has been to develop in that region, and Seabrook West does that for us.”
Moving forward, Carter says, the company will look to make up to four acquisition deals in 2016, potentially complemented by up to three new facilities. While upcoming deals won’t be as focused on geography as the Seabrook deal, he says underserved markets will be the most attractive areas for growth.
“We’ll be looking to acquire facilities that are strong clinically in the product they deliver but also strong in their reputation,” Carter says.
Additionally, Summit BHC will aim to gain a broader payer mix, looking at possible in-network Medicaid providers and exclusive self-pay providers, which the organization doesn’t have currently.
“What we’re looking at corporately is to begin to offer substance use disorder services to all payers,” Carter says. “If we’re missing a payer type, we’ll look to remedy that.”
The acquisition opportunities in the addictions market are somewhat competitive now. While there is room to purchase and consolidate fragmented treatment centers across the country, buyers are selective.
Carter says Summit BHC will react as needed, revising its growth strategy in real time, depending on the richness of the acquisition pipeline in 2016.
“Summit BHC is a new company, but the people here are not new to the market,” he says. “If you come to the table with a history of providing quality care, that is appealing to the sellers.”
Carter previously served as the CEO of Acadia Healthcare and was a senior leader at Universal Health Services, Charter Behavioral Health Systems and others. Co-founder and president Karen Prince was formerly the COO of Acadia and has held various executive positions with Universal and Charter. Launched less than three years ago, the Summit BHC portfolio includes centers in Texas, Louisiana, Georgia and California as well as Mountain Laurel in Pennsylvania.