Origins Behavioral Health has announced that it will acquire two treatment facilities from Caron Treatment Centers. The Hanley Center in West Palm Beach, Fla., and Gate Lodge in Vero Beach, Fla., will add 110 beds to Origin’s current capacity of more than 80 beds at various levels of care.
According to officials at both organizations, the timing is strategic. Origins is on course to gain a foothold in the East Coast and increase its service offerings through acquisitions and organic growth.
“This is our play for the East Coast,” Drew Rothermel, president and CEO of Origins, tells Behavioral Healthcare. “It more than doubles our number of beds, and there are another 50 or so beds ready to go online in Texas in about a year. But if you look at Origins, the geography of the patients is 40 percent from inside Texas and the rest are from out of state, probably skewed to the West Coast.”
However, Rothermel says the equally attractive part of the Hanley Center property is that fact that Origins will now own 10 acres of available land zoned for treatment that has yet to be developed.
“It gives us tremendous expansion capacity in West Palm Beach,” he says. “It gives us a corporate headquarters building, so we’re moving all of our corporate functions to West Palm Beach. And it gives us much better access to the East Coast.”
The Hanley Center has a 30-year history and is a noteworthy acquisition. Rothermel says it will take some time to fully integrated it into the Origins system. But in the meantime, the company will continue to explore other possible acquisitions.
“We have people solely dedicated to deals so we can do that without impact on our ability to run the rest of the business, and we have the access to capital, etc.,” he says.
Origins is looking to partner with other organizations that are like-minded and are leaders in the evolving business of addiction treatment.
As a result of the deal, Robert Park, Origins' longtime executive director has relocated to Florida and has assumed the executive director role at Hanley Center.