Transformations Care Network Acquires Lightheart Psychological Associates

Boston-based Transformations Care Network expanded into its sixth state following the acquisition of Redmond, Washington-based LightHeart Psychological Associates.

Terms of the deal were not disclosed.

Transformations Care Network, which was born out of a 2021 four-way merger, provides a wide range of outpatient mental health services ranging from adult and child psychiatry to ketamine therapy and group therapy, according to a news release.

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The company now operates 30 locations with about 800 employees in Massachusetts, Pennsylvania, Virginia, Maryland, West Virginia, and now Washington with this deal.

LightHeart Psychological Associates employs over 40 clinicians in two locations in Redmond, Washington. LightHeart CEO Dr. Holley Kaskel founded the company in 2016 which provides relationship-based psychotherapy to children, teens and adults as well as medication management.

The deal closed on March 31, marking Transformation Care Network’s ninth acquisition. Kaskel will work with the company as vice president of market operations and market lead, according to a representative of the company.

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LightHeart will access additional clinical and administrative resources through its deal with Transformations Care Network. These include back office, technology, business development and clinical services.

The companies will explore additional partnerships and de novo growth opportunities with plans to open at least two new locations in the Seattle area in the next 12 months.

In January, Transformations Care Network announced that it acquired Columbia Associates in Psychiatry and New Directions Counseling Services. These acquisitions expanded Transformations Care Network into Maryland and Northern Virginia and broadened its presence in Western Pennsylvania.

Transformations Care Network is backed by Chicago-based private equity firm Shore Captial Partners which focuses on growing microcap businesses in the health care, real estate, food and beverage and business services industries.

The company plans to open five de novo locations in Massachusetts this year as well.

Shore Captial Partners also lists positions in Dallas, Texas-based Applied Behavioral Analysis therapy provider Behavioral Innovations; Cincinnati-based substance use disorder (SUD) treatment provider BrightView; and Arlington, Massachusetts-based mental health and SUD provider Column Health.

Outpatient mental health is a highly fractured and under-invested industry. Several entities are operating as consolidators in the space. The largest of which would be Lifestance Health Group Inc. (NASDAQ: LFST) (which went public in 2021) and Refresh Mental Health which was recently acquired by Optum.

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