Nashville, Tennessee-based Acute Behavioral Health has acquired Nova Behavioral Health’s residential treatment facility in Kinston, North Carolina.
The terms of the deal were not disclosed. The facility operates 42 beds across three different buildings on a six-acre campus. Technically speaking, the facility, called Oakwood Treatment Center, is licensed by North Carolina as a psychiatric residential treatment facility for children and adolescents.
Acute Behavioral Health’s clinical focus is on providing short-term, residential care for youth that is meant to be the middle space between short, acute psychiatric hospital stays and extended, residential treatment. Acute Behavioral Health was founded in 2021 by CEO Mike McCulla and Al Smith, who is not listed as an executive on the company’s website. Nova Behavioral Health, which is headquartered in Goldsboro, North Carolina, opened the facility in 2008.
“Oakwood’s treatment center design and team culture and values align with our mission and the ability to provide intensive treatment services for young people with a focus on lowering levels of care as quickly as clinically possible and ultimately, reunifying them back into a safe home environment,” McCulla said in a news release
Oakwood Treatment Center provides care for youth aged 12 to 17 years old. Patients are referred to the facility by other mental health providers or social services for intensive services, the release states.
Acute Behavioral Health is a private equity-backed platform company. Its sponsors include Petra Capital Partners, Harbert Management Corp., ElmCreek Partners and Granite Growth Health Partners, according to its website.
This acquisition is the second deal that the company has announced. Its first acquisition target was Hallmark Youthcare, the largest short-term residential treatment program in Virginia. That deal included an 82-bed inpatient psychiatric residential treatment facility for youth.