Spero Health has bought fellow outpatient addiction provider My Turning Point in its first acquisition.
The new acquisition will give the Brentwood, Tennessee-headquartered provider four new outpatient addiction treatment program locations in Kentucky. This comes as Spero Health continues its ambitious growth plan heading into the final stretch of 2022.
Financial terms of the My Turning Point deal were not disclosed.
Founded in 2018, Spero Health currently has more than 85 locations in Kentucky, Ohio, Tennessee, Indiana, West Virginia and Virginia. It is looking to expand into new states, services and conditions, Spero CEO Steve Priest told Behavioral Health Business in August.
Spero Health started as an opioid use disorder treatment provider. It now treats other conditions like alcohol use disorder, and it is looking at incorporating partial hospitalization and detox programs into its services moving forward.
Spero Health is also looking to grow its value-based care and outcomes measures in the future. The outpatient care provider accepts state Medicaid and most commercial insurance plans.
“The drug epidemic has taken an enormous toll on the families and communities across the nation, and Kentucky sadly has been hit particularly hard,” Priest said in a statement. “This deadly crisis has torn families apart and has taken far too many lives. One of the biggest challenges over the past decade for much of the nation has been access to quality care, and this acquisition allows our organization the ability to further expand life saving services so that even more people in more places have immediate access to the highest quality of care, close to home.”
This isn’t the only recent acquisition in the substance use disorder (SUD) market.
In August, addiction treatment provider BrightView Health purchased Column Health for an undisclosed sum. Column Health provides physical and in-person medication assisted treatment and psychotherapy services to 2,200 patients and operates in 11 locations.
But not every SUD provider is looking to grow through M&A. Landmark Recovery, which has been growing at breakneck speed, has said it has no current plans to grow through M&A.
Deals in the SUD space decreased by nearly half from Q1 (15 deals) to Q2 (8 deals), according to an M&A report from consulting firm Mertz Taggart. Additionally, 2022 isn’t on track to meet last year’s 76 deals in the SUD space.
Behavioral health as a whole is seeing fewer deals in 2022 than in 2021. Behavioral health deals are on pace to reach 106 in 2022, down from 137 deals in 2021, according data from KPMG LLP, Epstein Becker & Green and FocalPoint Partners.
Yet this isn’t necessarily indicative of a cooling market.
“When you put it in perspective of the economic headwinds that are out there for the entire industry and the pullback in deals of the entire industry, we’re looking at the deal flow to be still pretty healthy for behavioral,” Larry Kocot, principal at KPMG, previously told BHB.
Spero Health is backed by Heritage Group, Health Velocity Capital, South Central Inc. and Frist Cressey Ventures.