Mom-And-Pop Addiction Treatment Provider BRC Healthcare Shutters 3 Years After PE Takeover

Private equity-backed addiction treatment provider BRC Healthcare has closed down its operations

The Manor, Texas-based organizations shuttered on Jan. 15. The company and its investors have not responded to several requests for comment.

BRC Healthcare’s closure announcement says its sober living brand, Segue Recovery, will continue to operate under new ownership but doesn’t detail the new ownership. The company’s Joint Commission quality report details that it operated six sober living locations as of June 2023. 


As of Feb. 1, calls to BRC Healthcare’s customer services lines are forwarded to Gulf Breeze, Florida-based Gulf Breeze Recovery. By all appearances, the two organizations are not related.

Gulf Breeze Recovery has not yet responded to a request for comment. This story may be updated.

“BRC Healthcare and all related companies will formally cease operations effective no later than January 15, 2024,” BRC Healthcare’s announcement states. “We hope that the memory of BRC Healthcare may remain a beacon of hope and inspiration for individuals seeking treatment.”


Mark Houston founded the company that would eventually become BRC Healthcare. In 2006, he founded the Mark Houston Recovery Center in Austin, Texas. He died in 2010. The company was acquired by Wayne Kinsey, a Texas-based oil and chemical entrepreneur and executive. The company rebranded to Benchmark Recovery Center, according to a blog post by long-time, now-former CEO Marsha Stone. The “Benchmark” brand was used at other Kinsey companies. 

The company rebranded to The BRC Recovery Family of Programs in 2015. 

In April 2020, the private equity firms Veronis Suhler Stevenson, based in New York City, and New Spring Capital, based in Radnor, Pennsylvania, acquired the BRC Recovery Family of Programs and rebranded it as BRC Healthcare. It was an all-equity deal, according to a Wall Street Journal report

BRC Healthcare was to be a platform for acquisitions and new services. At that time, it operated three residential treatment centers — BRC Recovery, Makana Path and Spearhead Lodge — as well as Segue Recovery. Stone was to stay on as chief strategy officer. Drew Rothermel was named CEO at that time, according to a news release. Rothermel was CEO until March 2022. He was named CEO of Fulcrum Equity Partners’ substance use disorder (SUD) treatment provider Defining Wellness Centers in November 2023. 

Rothermel has not responded to requests for comment. 

At the time of the investment, Veronis Suhler Stevenson and NewSpring Capital had previously invested in behavioral health organizations. The former had invested in Ascent Behavioral Health, while the latter had invested in SUN Behavioral Health and Habit Holdings.

Post-investment, the company expanded its leadership team, services and footprint. In July 2021, BRC Healthcare announced that it had acquired four addiction treatment centers in the Nashville, Tennessee, market from the Spero Group. Two years later, BRC’s Nashville locations were the subject of an exposé over shoddy care and employee experience. 

The latest announcement from the company was the addition of Amanda Baker to the roles of president and chief clinical officer in April 2022. She left the company in December 2023, according to her LinkedIn page.

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