Centerstone and Seven Counties, two not-for-profit behavioral health providers, have announced their intent to merge, with the organizations operating as affiliates. The deal between the two “kindred spirits” has been in the works for a few years with serious due diligence taking place just in the past year, David C. Guth, Jr., CEO of Centerstone, tells Behavioral Healthcare.
“It complements our geography nicely,” Guth says. “We think of our footprints in Indiana, Illinois, Tennessee and of course Florida, and that has benefits in terms of sharing clinical programs and looking at underserved areas. And there have already been significant collaborations among our clinical leadership.”
Once finalized, the Centerstone/Seven Counties affiliation would encompass 181 locations with approximately $310 million in annual revenues, employing more than 4,500 people and serving an estimated 150,000 individuals. The Seven Counties deal adds Kentucky as the fifth state in Centerstone portfolio.
“Like everything else in healthcare, there’s a continued need to get to optimum scale,” Guth says. “The good news for all of us is that the scale of Seven Counties within Kentucky is large enough for an in-state presence, and it also helps dramatically complement the overall scale of the enterprise.”
Tony Zipple, ScD, president and CEO of Seven Counties, will remain with the organization and serve as CEO of Centerstone Kentucky. Seven Counties delivers community-based treatment, support and services for persons with severe mental illnesses, children with severe emotional and behavioral disorders, individuals with developmental or intellectual disabilities, and adults and adolescents with addiction and substance abuse disorders, currently serving more than 34,000 individuals per year.
The deal is anticipated to close in July.