Private equity-backed outpatient mental health provider ARC Health has made yet another acquisition. This time, it has picked up mental health therapy practice Lotus Consulting.
The terms of the deal were not disclosed. Ann Arbor, Michigan-based Lotus Counseling offers mindfulness-based wellness services, as well as mental health services and behavioral health assessments.
As part of its offerings, patients can receive addiction, anxiety, eating disorders, grief, trauma and virtual care.
“[I’m] thrilled to partner with ARC Health combining our focus on outstanding, evidence-based mental health care to reach those in need of effective mental health services,” Lotus Consulting CEO Ilona Phillips said in a statement. “The opportunity also provides a well-supported and empowering environment for our clinicians. I am pleased to join a group with a leadership team consisting of clinicians and experienced business leaders committed to a true partnership.”
Cleveland, Ohio-based ARC Health currently has more than 320 psychiatrists, psychologists and therapists. Founded in 2021, it works with patients in Connecticut, Georgia, Michigan, Minnesota, New York, North Carolina, Ohio, Tennessee, Virginia and Washington, D.C.
ARC Health was formed when PE firm Thurston Group partnered with Ohio-based outpatient mental health provider Advanced Recovery Concepts.
When ARC Health was founded, Patrick J. Haynes III, CEO and chairman of Thurston Group, said that it would have an aggressive growth strategy and was “poised to expand nationally.”
ARC Health has since made a number of acquisitions. In October, it announced the acquisition of Georgia-based Focus Forward Counseling & Consulting Inc. The deal brought with it two new locations in the Atlanta area.
The company expanded into the Mid-Atlantic region this fall with the acquisition of Relationship Therapy Center and The Ross Center. Over the summer, it also acquired youth and family mental health service provider Sasco River Center and adolescent and young adult provider Southeast Psych.
Private equity firms, and private equity-backed providers, have become increasingly active in the behavioral health space.
In fact, private equity deals made up 60% of all behavioral health transactions in the first three quarters of 2022, according to a new report from merger-and-acquisitions advisory firm The Braff Group.
Overall, behavioral health deals are down this year from 2021’s outlier year. Still, 2022 is on track to out pace 2020 behavioral health deals.
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