Substance use disorder provider Delphi Behavioral Health Group has tapped Michael Borkowski as its next CEO.
Borkowski initially joined the organization in 2016 as chief financial officer. A certified public accountant, Borkowski holds a bachelor’s degree in accounting and finance from Florida State University. Borkowski will be taking the reins from former CEO Matthew Feehery.
As the new CEO, Borkowski is tasked with expanding the organization’s clinical strategies, to grow its treatment facilities and broadening its geographical footprint.
“Although we operate in a constantly evolving environment, I strongly believe that the company has prioritized providing top-notch care and support for its clients and their families since its inception six years ago,” Borkowski said in a press release. “Delphi’s strong history paired with its passionate and talented team makes it exciting for me to step into this role.”
The Fort Lauderdale, Florida-based organization has 14 locations across five states. Its services include detox, inpatient treatment, intensive outpatient treatment and partial hospitalization. The operator works with Cigna (NYSE: CI), Aetna, Elevance (NYSE: ELV), CareFirst BlueChoice and other major insurers.
Founded in 2016, Delphi can treat patients with alcohol, opioid, stimulant, sedative and Benzodiazepine use disorders.
Delphi was recapitalized in 2017 by The Halifax Group, which gave the private equity firm the majority stake of the operator. The PE group typically focuses on lower middle-market businesses with total enterprise values generally between $50 million and $250 million.
The next year, Delphi merged with New Jersey-based addiction provider Summit Behavioral Health. Financial terms of that merger were not disclosed.
The substance use disorder space has quickly been gaining traction with private equity investors. M&A advisory firm The Braff Group found that between 2017 and 2021, there were 300 deals in the substance use disorder space – the highest in any behavioral health sub sector.
Among the current industry challenges Borkowski will have to navigate: staffing shortages and reimbursement rates.
“Michael’s extensive background in executive leadership and financial operations make him an ideal fit for this role,” Delphi Chairman of the Board Mike Katz said in the release. “He is a proven leader, and I am confident that his strategic focus will help drive both growth and profitability for the company.”