Addiction treatment provider Pinnacle Treatment Centers has acquired four outpatient opioid addiction treatment centers from King of Prussia, Pennsylvania-based Recovery Centers of America.
Mt. Laurel, New Jersey-based Pinnacle Treatment Centers continues to grow via M&A and de novo openings.
Three of the four newly acquired centers operate in New Jersey — in Trenton, Somerdale and Iselin. The other is based in Lansdowne, Pennsylvania. The centers focus on providing medication-assisted treatment (MAT) for opioid use disorder (OUD).
“Pinnacle is committed to providing the highest quality of care to the greatest number of people through community-based facilities,” Pinnacle Treatment Centers CEO Joe Pritchard said in a news release. “We want to make it as convenient as possible for individuals in need to access our services.”
Recovery Centers of America opened these facilities in the space of a few years. The company announced the opening of the Trenton facility in November 2018, the Somerdale facility in August 2019, the Lansdown facility in November 2019 and the Iselin facility in September 2020.
Brian O’Neill, CEO of Recover Centers of America, told Behavioral Health Business that the move represents a divestiture of its free-standing MAT center business.
“We are focused on a number of MAT applications. We’re big believers in that; we know it works,” O’Neill said, adding that 40% of patients participate in MAT. “But we want to do it through our hospitals and our current outpatient centers, not exclusively at MAT clinics.”
O’Neill said Recovery Centers of America was not able to reach the scale it wanted to in the standalone MAT clinic space. Now, it’s doubling down on its core facility business which puts several services in one place. The company is also adding psychiatric services in several centers, he said.
“We only want to be No. 1 in the things we do, and we didn’t feel like we could be the No. 1 player in that industry,” O’Neill said. “So we made a decision to divest the Pinnacle.”
Pinnacle Treatment Centers offers a spectrum of addiction treatment and mental health services in California, Georgia, Indiana, Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania and Virginia. Its website lists 141 locations.
The company recently completed the build-out of an all-in-one addiction treatment and mental health campus in Martinsville, Indiana, called Recovery Works Martinsville. It announced that it had opened a clinic in Niles, Ohio, earlier this year.
Late last year, it acquired MBA Wellness Center in Georgia, which served about 130 people daily at that time. It also announced the opening of a location in Lanoka Harbor, New Jersey.
For its part, Recovery Centers of America announced in March the acquisition of mental health and addiction treatment provider Adolescent & Young Adult Advocates. The latter company is based in Bryn Mawr, Pennsylvania and offers a comprehensive outpatient treatment program for substance use disorder (SUD), anxiety, depression and other mental health issues.
Since the start of the year, Recovery Centers of America secured an agreement to participate in the Humana Military network, one of a small handful of companies that manage health benefits for American military members.
Humana Inc (NYSE: HUM) manages Tricare’s East Region. It also announced the pending opening of a 130-bed facility in Greenville, South Carolina and a new specialty program focused on supporting LGBT+ patients with addiction, according to previous news releases.
O’Neill said Recovery Centers of America continues to expand westward from its base in Pennsylvania, with target locations in the South and West. He declined to say where but added the company has the goal of treating 50,000 patients in 2023.
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