Summit Behavioral Healthcare announced Thursday that it acquired seven psychiatric hospitals in six states from Strategic Behavioral Health.
The Franklin, Tennessee-based behavioral health and addiction treatment provider will add an additional national 613 inpatient psychiatric beds to its portfolio through the transaction.
The newly acquired facilities treat children, adults and elders and operates an unspecified number of outpatient programs, according to a news release.
In September, Behavioral Health Business reported that Menlo Park, California-based health care investment firm Patient Square Capital agreed to buy Summit BHC from FFL Partners and Lee Equity Partners in a deal that valued Summit at over $1 billion. That deal closed in November.
The deal with Strategic Behavioral Health expands Summit BHC’s existing presence in Iowa, Tennessee, and Texas and gives the company a foothold in New Mexico, North Carolina, and Wisconsin for the first time. Strategic Behavioral Health operated two hospitals in Wisconsin and one hospital in the other states.
“We are excited to welcome these facilities and their staff members to the Summit family,” Brent Turner, CEO of Summit BHC, said in the release. “We are committed to providing these communities with the high-quality care they have come to expect, and we look forward to working closely with them.”
Founded in 2013, Summit BHC operates behavioral health hospitals and addiction treatment centers throughout the U.S. Including the newly acquired facilities, the company owns and operates 31 inpatient facilities across 19 states. Its services include acute inpatient care, detoxification programs and residential and outpatient services.
This deal also encapsulates two defining features of the previous year — the growing interest of private equity in behavioral health and the strong behavioral health M&A market.
The terms of the deal were not disclosed.