Promises Behavioral Health Announces Recapitalization
Strategic transaction positions Promises Behavioral Health to meet expanding need for mental health services nationally
November 08, 2021 17:30 ET | Source: Promises Behavioral Health
Brentwood, Tenn., Nov. 08, 2021 (GLOBE NEWSWIRE) — Promises Behavioral Health (Promises) announced that on November 5, it completed a full recapitalization with Assured Healthcare Partners (AHP) to position the behavioral health platform for continued future growth.
“This transaction provides Promises with the resources we need to continue executing our strategy of organic, de novo and M&A growth,” said Rob Waggener, CEO and seasoned expert in the behavioral health space. “In just the past 18 months, Promises has acquired a former psychiatric hospital in College Station, Texas, and opened a new 72-bed co-occurring substance abuse and mental health facility providing detoxification, residential, partial hospital and intensive outpatient services in that growing market. We’re looking forward to expanding access to these essential services for those who need it.”
In addition to recent growth, Promises has expanded its focus by opening an array of outpatient services in Tennessee, Massachusetts, and other markets. The company is moving to provide affordable, accessible, and attainable high-quality behavioral health solutions to local and regional markets by leveraging in-network payor strategies.
“Our continued support of Promises enables expanded access to essential mental and behavioral health services in underserved segments of the healthcare market. We will continue to devote substantial resources to opportunities in behavioral health given the meaningful value creation opportunities we can influence as a financial sponsor,” said Jim Pieri, Managing Partner with AHP.
The recapitalization increases Promises’ financial and operating flexibility with a deleveraged balance sheet and access to capital from a strategic sponsor to pursue growth opportunities.
About Promises Behavioral Health
• Each day, Promises, serves thousands of individuals and families with co-occurring substance abuse and mental health disorders in subacute settings with inpatient and outpatient facilities currently in five states.
• Promises has invested more than $10 million over 18 months in new facilities, including:
o A new 72-bed facility in College Station, Texas, treating substance abuse co-occurring with mental health disorders.
o Two new outpatient locations as well as increased transitional sober-living beds in Massachusetts.
• Promises is continuing its expansion plans for multiple transitional living opportunities in its markets and several acquisitions of high-performing behavioral health organizations to accelerate the expansion of the platform’s proven model.
• Promises has entered into numerous new payor contracts extending its reach in existing markets as well as new regions.
• Promises has recently added several seasoned executives in clinical leadership and new members to its executive leadership team including:
o Lorri Steiner, Chief Financial Officer
o Rick Desai, Vice President of Managed Care
• For more information about Promises, please visit www.promisesbehavioralhealth.com.
About Assured Healthcare Partners®
Assured Healthcare Partners® (AHP®) provides capital solutions supporting growth, consolidation, and repositioning opportunities in the healthcare services industry. AHP combines its flexible capital with company and sector-specific research, as well as an extensive industry network and internal team of specialized healthcare resources, to unlock value for portfolio companies and investors. For more information about AHP, please visit www.ahpartners.com.
About Promises Behavioral Health
Promises Behavioral Health is a family of behavioral health programs with regional brands such as The Right Step, The Ranch, and Promises. The company currently operates facilities across Texas, Tennessee, Florida, Pennsylvania and Massachusetts. Promises offers comprehensive, innovative treatment for substance abuse, sexual addiction, trauma, eating disorders, and other mental health disorders. Through its programs, the company is committed to delivering clinically sophisticated treatment that promotes permanent lifestyle change, not only for the patient but for the entire family network. For more information, please visit www.promisesbehavioralhealth.com.