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Private equity-backed substance use disorder provider Summit BHC has acquired Sobriety Centers of New Hampshire.
This marks the SUD provider’s first move in the New England market. Sobriety Centers of New Hampshire offers detox programs, intensive outpatient programs (IOPs), partial hospitalization programs (PHPs), outpatient programs, residential programs and programs for veterans.
The New Hampshire-based provider has two locations and can treat several substance use disorders, including alcohol, opioid, cocaine and other use disorders.
Sobriety Centers of New Hampshire is in-network with a number of large providers, including Anthem, Aetna, Blue Cross Blue Shield, Cigna and Humana.
“We are thrilled to welcome SCNH into the Summit family. This acquisition is consistent with our strategic growth and commitment to excellence,” Brent Turner, CEO of Summit, said in a statement. “We are eager to further the work of the dedicated professionals at SCNH and continue delivering exceptional care to the communities they serve.”
Summit is a Franklin, Tennessee-based substance use disorder provider. It operates 37 freestanding facilities in 20 states nationwide. The company is backed by private equity firm Patient Square Capital.
Over the last year, Summit has focused on de novo growth instead of M&A.
“From our standpoint and our private equity sponsor’s, we’re very focused on the de novo,” Turner said at Behavioral Health Business’ INVEST event in October. “There’s only so much capital available, and interest rates are up 600 points. So, it changes the dynamics of the opportunity for acquiring spending money. But for us, we were able to finance de novo growth from our cash flow. It’s not even a decision tree; it’s just natural.”
Overall, M&A in the substance use disorder space has dropped substantially. In 2022, there were 51 deals in the addiction treatment space; that number fell to just 28 in 2023, according to a report by M&A advisory firm Mertz Taggart.
