King of Prussia, Pennsylvania-based Recovery Centers of America, a behavioral health operator, has raised $231.5 million in funding from Deerfield Management Company. The capital will be used to either develop or buy eight treatment centers in the Northeast U.S.
NEW YORK, Dec. 16, 2015 /PRNewswire/ — Deerfield Management Company, L.P. announces a partnership with Recovery Centers of America (RCA) to build a leading addiction and behavioral healthcare treatment company. Deerfield has committed $231.5 million to fund the development or purchase of eight treatment campuses in the Northeast United States that will provide a comprehensive continuum of integrated care.
RCA was founded to transform addiction and behavioral treatment by emphasizing clinically validated treatment approaches delivered in supportive environments designed to incorporate regular involvement by family and friends. This is a revolutionary change from today’s care paradigm that too frequently relies on a patient leaving their community for treatment, which separates them from their support network and exposes them to needless gaps in care as they transition back to lower settings of care. The management team’s unique blend of real estate, clinical, operational and marketing expertise provides an experienced platform for delivering on this vision.
Deerfield’s capital commitment will enable RCA to purchase or develop at least eight integrated campuses that will include an estimated 1,200 inpatient beds by the end of 2017. The financing is structured on a milestone basis that allows RCA to move forward in a meaningful fashion with access to capital at needed junctures along its development path.
“We are excited to have Deerfield as our partner in building a solution to help alleviate the domestic epidemic that is gripping our nation,” stated Brian O’Neill, founder and CEO of Recovery Centers of America. “Deerfield has proven to be an exceptional partner in launching our company, serving as both a creative source of capital as well as a trusted adviser helping us to refine our operational and growth strategy.”
“Finding a solution for the exploding number of individuals racked by addiction is a healthcare imperative that we are passionate about, and we quickly recognized RCA as an innovative organization with the potential to change the progression and trajectory of this crisis. We believe that RCA is uniquely suited for delivering tangible benefits to patients, families and payors alike, and we are enthusiastic about the opportunity to deploy our capital and supportive services to help build these capabilities,” said Leslie Henshaw, Partner at Deerfield Management.
Based in King of Prussia, PA, Recovery Centers of America is committed to advocating for some 22.7 million Americans suffering from behavioral health and substance use disorders. The company, which is opening treatment centers throughout the Northeast, is transforming the way treatment is delivered in an industry in desperate need of change. Recovery Centers of America’s neighborhood-based Centers for Addiction Medicine are designed based on the latest scientific research that indicates sustained recovery is more likely when patients stay connected to and supported by family and friends, while building other, ongoing support networks. By allowing patients to receive treatment in an atmosphere more akin to a college campus with Starbucks-like appeal, Recovery Centers of America helps overcome the stigma of addiction and its treatment, which is essential to meaningful recovery.
For more information visit www.recoverycentersofamerica.com.
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com.