Recovery Solutions is now a standalone business after completing its court-approved separation from government contract congregate care provider Wellpath.
On Monday, executives with the former behavioral health division of Wellpath, branded as Recovery Solutions, announced it was no longer affiliated with its former parent company and now solely focuses on behavioral health services, particularly for individuals with a serious mental illness (SMI). A federal bankruptcy court approved the spin-off of Recovery Solutions on Jan. 8.
“When you are part of an organization that is trying to meet multiple goals or missions, the organization is trying to balance a variety of competing interests and needs,” Barr told Addiction Treatment Business. “We are incredibly excited to be a standalone independent organization that will allow us to focus singularly on our mission to expand care to those with SMIs and related disorders.”
In part, the separation will allow Recovery Solutions to better define its “identity” and focus on its specific goals to invest in technology, training and recruiting.
Recovery Solutions is now owned by a coalition of Wellpath’s creditors. It is led by CEO and President Jeremy Barr, and Chief Clinical Officer Dr. Cassandra Newkirk. Barr declined to specify which firms now own and invested in establishing standalone operations at Recovery Solutions.
Recovery Solutions is headquartered in Nashville, Tennessee. As of Jan. 28, it employed 3,700 people and operated in 10 states.
The standalone business zeros in on contracting with and managing government-backed behavioral health facilities and services. Its inpatient and residential facility services line manages 2,000 beds for civil, forensic and acute voluntary-commitment patients. This is the company’s largest service line.
It has contracts to provide community-based services in California with county governments, specifically residential treatment centers for civil patients that support over 200 people a day. It also provides competency restoration services via intensive outpatient programs to 300 people a day. These are embedded in detention centers.
“For Recovery Solutions, we are focused on directly contracting with state or county mental health authorities,” Barr said. “It is a different model than we have embraced, which is niche and specific to our organization.”
In the future, Recovery Solutions intends to grow its footprint. It has plans to open new operations in Indiana and Arkansas at some point in 2025. The company was founded in 1997.