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Caron Treatment Centers, Hanley Center to join forces by July

May 17, 2011
by Gary A. Enos, Editor
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Leaders foresee service expansions resulting from deal

Two of the most nationally prominent addiction treatment centers will join forces in an acquisition agreement that is expected to be finalized by July 1. West Palm Beach, Fla.-based Hanley Center will become an affiliate of Caron Treatment Centers under the agreement, which will result in an organization with a combined budget of about $100 million, about 550 beds, and just under 800 employees.

Caron’s president and CEO sees this agreement and other affiliations that have been announced in the field in recent months as reflecting an inevitable trend for a branch of healthcare where the largest organizations would be considered “gnat-like” in other health fields. “When you look at this field, most organizations are not that large,” says Caron’s Doug Tieman. “Expertise in all areas is difficult for any institution to procure on its own.”

Tieman and Hanley CEO Barbara Krantz said in an interview shortly after the deal was announced on May 12 that the two organizations see each other as natural partners because of similar histories (founded by families in recovery, heavily engaged in philanthropy, etc.). They also expect to benefit from sharing expertise in areas where each is strong individually, such as with Hanley’s work in treating older adults and Caron’s continuum of services for adolescents and young adults.

Krantz adds that Hanley Center’s pioneering work in outcome research, where the organization is using neuroimaging in an attempt to help pinpoint the factors that contribute to success or failure in treatment, will be enhanced through a larger patient base and Caron’s ties to additional research institutions.
Tieman praised Hanley and Krantz for “out of the box” thinking that ultimately could revolutionize how treatment services are delivered.

The two nonprofit organizations are expected to retain their names and respective brand identities in the short term. When the affiliation deal is finalized, Tieman will serve as CEO and Krantz will become chief medical officer, as well as Hanley’s medical research director. Caron chief financial and administrative officer Andrew Rothermel will oversee all of the combined entity’s Florida operations.

The deal, under which no payments will change hands, is expected to allow Hanley to accelerate expansion plans in West Palm Beach, including plans for a new 20-bed residential program. Caron operates residential programs in eastern Pennsylvania and in Dallas, and already has a Florida presence with its Caron Renaissance extended-care center in Palm Beach County. Tieman says Caron expects to increase bed capacity at Renaissance as well.

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