Behavioral health provider ARC Health has acquired outpatient mental health providers Relationship Therapy Center and The Ross Center.
These new acquisitions will help ARC Health expand into the Mid-Atlantic region and suburban Minneapolis.
This brings ARC Health’s deal total to four since its formation as a platform company.
ARC Health is an Ohio-based outpatient mental health company backed by the Chicago-based private equity firm Thurston Group. The firm invested in Advanced Recovery Concepts and changed its name in August 2021.
The financial details for both deals were not announced.
The Ross Center operates locations in Washington, D.C.; Vienna, Virginia; and New York City. It employs more than 50 clinicians and treats adults and children.
“The Ross Center, with their focus on quality care and superior outcomes, is a perfect example of the kind of practice we look to partner with,” Vince Morra, CEO of ARC Health, said in a news release. “This partnership allows The Ross Center to maintain clinical autonomy and brand identity without sacrificing financial strength or stability.”
The other practice ARC Health acquired — The Relationship Therapy Center, based in St Louis Park, Minneapolis — employs more than 30 therapists that specialize in relationship counseling. It purports to be the largest couples therapy practice in the Midwest.
Founded in 2006 by Theresa Benoit and Jeb Sawyer, The Relationship Therapy Center is expected to provide insights on couples therapy for the other ARC practices.
“ARC Health is rounding out to be a full-service national mental-health organization,” Morra said.
Following these deals, ARC Health has 17 locations across seven states and the District of Columbia. The company says it has over 300 providers.
ARC Health is following a somewhat familiar pattern in the outpatient mental health space.
Private equity investing in a mental health platform seeking to roll up independent practices to become a national provider is the basic thesis behind the industry giants LifeStance Health Group Inc. (Nasdaq: LFST), Refresh Mental Health and Thriveworks — all three of which are the largest in the nation.
LifeStance Health and Refresh Mental Health had big-time exits from private equity ownership: LifeStance went public in June 2021 while Refresh was acquired by Optum in March 2022, the services arm of the health care and health insurance giant UnitedHealth Group Inc. (NYSE: UNH)
Thriveworks recapitalized in 2021 and raised $340 million from several investment groups.
Companies featured in this article:
ARC Health, Relationship Therapy Center, The Ross Center, Thurston Group
