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AAC Shares Soaring Following Strong 3Q Earnings Report  E-mail

11/06/2017 - ATIN - The price of American Addiction Centers (NYSE: AAC) shares are soaring in a strong multi-session rally driven by last week's release of quarterly earnings, which met or exceeded expectations. Nashville-based AAC has repeatedly failed to meet earnings expectations over the past year or so, which is why for most of the month of October shares traded in a range of $7.50 to $8.50, not far above the company's all-time low trade of $6 a share.

On Monday, investors continued to steadily drive AAC shares higher on big volume. About 270,000 AAC shares traded Monday, approximately twice the average daily voiume over the past three months. Shares closed at $11.14 Monday, up nearly 50 percent since AAC reported 3rd quarter earnings Wednesday afternoon.

Revenues for the third quarter surged 14 percent to $80.4M while operating expenses fell 10 percent, which strengthend investors confidence in the company's quality of earnings and profitability.Also underscoring continued high qualiytty of earnongs, AAC reported that the average daily residential rate was $925, up an astounding 48 percent. Average revenue per outpatient visit surged 33 percent to $437.

AAC's growth is to a large extent being driven by mergers and acquisitions, as well as "de novo" or greenfield new center develoiopment. In September, AAC reached a definitive agreement to acquire AdCare for consiuderstion of $85M. AdCare is one of the Northeast's largest and well regarded treatment enterprises.

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New Medical Center to Open on Caron Campus, Transformative Role  E-mail
Addiction Treatment Industry Newswire

10/30/2017 - ATIN - A top notch new medical model addiction care center, opening in December, is set not only to transform the look of Caron's Pennsylvania home campus but also its approach to treatment, acording to CEO Doug Tieman.

The Carol and Ray Neag Medical Center is named after a couple with a long philanthropic history at Caron, They contributed just slightly more than $5M for the namesake medical facility, the largest gift in the non-profit's history. Tieman says he expects the $15M facility will put Caron on the leading edge of efforts throughout the industry to offer more than just spiritual solutions to addiction, moving to boost outcomes by innovating clinically through medicine.

Caron's program for seniors is already arguably the leading such program in the nation, but the older adult program - 65 and up - will get a major boost as it moves into the Neag Center. By necessity and for iobvious reasons, seniors require as their baseline a much higher degree of medical interventions. Few if any other seniors programs will have what the new Carole and Ray Neag center has to offer.

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Meridian Behavioral Acquires Muli-Site Minnesota Provider  E-mail
Addiction Treatment Industry Newswire

10/27/2017 - ATIN - Meridian Behavioral, a private equity backed Minnesota based center whose rapid growth in recent years has been due to an aggresive mergers and acquistions strategy, has acquired another Minnesota based center, New Beginnings.

New Beginnings has seven inpatient and outpatient facillities, all in Minnesota. Terms of the deal, such as price, were not disclosed. The seven facilities will be added to the 30 in total that Meridian already has, also all in Minnesota. The New Beginnings deal is the third transaction so far this year for Meridian.

In 2015, a majority stake in Meridian was bought by private equity firm Audax Partners from Los Angeles-based Triton Pacific Capital Partners.

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NJ's Liberty Management in Employee-Led Buyout  E-mail

10/25/1027 - ATIN - New Jersey-based Liberty Behavioral Management, which operates the big New York residential centers Arms Acres and Conifer Park, has been sold to its employees in a transaction advised by Prairie Capital of Chicago.

Praire structured a similar employee buyout for Cornerstone NY several years ago.

Liberty CEO Bill Hartigan wasn't immediately available for comment.

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Trump Fails to Elevate Opioid Crisis to 'National Emergency' Status  E-mail

10/25/2017 - ATIN - President Trump has declared the opioid crisis a health emergency, but has failed to elevate the problem to 'national emergency' status as he had previously promised.

The difference has enormous implcations for funding and bureaucractic and official reaction, with the health emergency meaning only the existing Health and Human Services budget can be tapped, while the much wider 'national emergency' would have meant access to the resources and budgets of a wide arrary of federal agancies as well as the possibility of a special congressional appropriation.

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NBC NIghtly News to Run Major Opiate Crisis Report Tonight  E-mail

10/24/2017 - ATIN - NBC Nightly News, the network's evening news program, will be running a major report tonight on the opiate crisis. Featured will be Dr. Kenneth Chance, CEO and and founder of California boutique center Arrowhead Lodge.

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Ohio County Donates 25-Acre Property for New Center  E-mail

10/24/2017 - ATIN - Summit County in Ohio will be donating part of an 89-acre former hospital property for a proposed new residential treatment center. About 25 acres of the property in Lakemore, OH, near Akron will be given to Hope United and Restore Addiction Recovery, two local not-for-profit groups recently formed to fight the opioid crisis by building a local center.

Hope United is working to raise $10 million to build a sober-living campus on the property. The campus would include a year long treatment facility, residential housing and an after-care community center called Tyler's Redemption Place.

Restore Addiction Recovery wants to build a 75-bed long-term recovery center. The first phase would be for men, with facilities for women and adolescents being added in later phases.

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FBI Raids Ohio Treatment Center  E-mail

10/25/2017 - ATIN - The FBI has raided Ohio's Braking Point treatment center under a sealed federal indictment. However, other agencies assisting in the investigation - the DEA, Ohio's Medicaid fraud unit and the IRS - give an indication of what may be wrong.

Braking Point's co-owner died of an accidental overdose in July.

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Narcan Developer Sets Sights on Heroin Vaccine  E-mail

10/24/2017 - ATIN - Opiant Pharmaceuticals, the developer of the revolutionary intra-nasal naloxone spray Narcan, is setting its addiction pharma sights on a heroin vaccine, which would work with the immune system to recognize heroin as a disease using the body's immune response to destroy the drug before it can reach the brain.

Opiant CEO Roger Crystal says that while it has been traditionally very difficult to secure funding for expensive development of drugs aimed at combating addiction - there are less than five drugs specifically FDA approved for addiction - Opiant is using the strong profits from booming Narcan sales to help fund the heroin vaccine's development. But with annual sales last year just shy of $18M, Opiant is a tiny company and will no doubt have to seek a pharma development partner to raise the many millions it will take to see the heroin vaccine through intial development as well as clinical trials and the like.

Seperately, while naloxone is about as cheap a drug to produce as exists, experts say its price has been inexplicably skyrocketing in recent years. Costs are equivalent to manufacturing saline yet the price of a dose of naloxone has jumped to $44 from just $12 five years ago. The big price hike may be due to manufacturers such as Pfizer profiteering as demand for naloxone has soared amidst an opiate addiction epidemic.

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Caron Near Reaching $70M Capital Campaign Goal  E-mail

10/23/2017 - ATIN - Caron, the Pennsylvania-based powerhouse non-profit addiction treatment foundation, has raised close to $60M towards a stated $70M capital campaign goal, by far the largest fund raaing effort in Caron's history, according to CEO Doug Tieman.

tieman said that Caron's board would be meeting in South Florida in November, where Tieman said he woukld likely bring up the subject of perhaps raising the campaign's goal to beyong the current $70M target.

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New 70+ bed Residential Center to Open in Seattle  E-mail
Addiction Treatment Industry Newswire

10/23/2017 - ATIN - Valley Cities Behaviorial of Seattle, a chain of approximately a dozen inpatient and outpatient facitilies, is opening a  new 73-bed residential addiction center in the Beacon Hill area of the city, the company announced.

The new center will be called Recovery Place Saettle and will have 33-beds devoted to detox and 40 to reisential.

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Lakeview Seeks Approval for Big Sober Living New Build  E-mail
Addiction Treatment Industry Newswire

10/18/2017 - ATIN - Lakeview Health Systems is seeking approval to build 100+ new beds for sober living and Florida Model care on a 22 acre site near the company's main treatment campus in Jacksonville.

Lakeview has submitted site plans to the city that show four residential structures. The two women's buildings are separated from the men's buildings. Plans show the men's buildings will provide 58 beds and the women's structures will offer 42. The smaller buildings are referred to as serving the professional programs.

Lakeview's main 12 acre Jacksonville campus includes men's and women's treatment programs and residential treatment buildings, the administration building, a café, and a conference center, wellness center and counseling center.

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South Florida's Delphi in Major Deal With Private Equity  E-mail

10/12/2017 -ATIN - South Florida's Delphi Behavioral Health Group has completed a major recapitalization with a leading private equity concern, arguably the most important financing and investment deal in Delphi's history. Washington DC-based private equity firm The HalifaxGroup has made a major investment in Delphi, with Delphi CEO Dominick Sirianni insisting  that he and his managment team still retain a "significant"stake in fast growing Delphi. Terms of the private transaction were not disclosed.

Headquartered in Fort Lauderdale, FL, Delphi Behavioral Health Group's treatment centers offer patients diversified addiction treatment programing to begin the process of recovery from addiction.  Each treatment center is equipped with a team of highly trained addiction specialists and follows the company's philosophy on addiction care, which includes a high clinician-to-patient ratio, intimate settings, and comprehensive, tailored treatment solutions, including cognitive and behavioral therapies, aftercare services and relapse prevention.

"Delphi and Halifax have a shared vision to provide outstanding individual, group and family therapy and care to all those we have the opportunity to serve," commented Mr. Sirianni.  "Halifax's history and experience investing in the healthcare sector will be helpful to our mission as we continue growing."

In April, Delphi completed a major transaction, acquiring 45 yr-old Palm Beach Institute residential center, the oldest continuously operating residential center in the key South Florida market, which fills much of the demand for treatment services of the entire East Coast.

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Summit Behavioral Sells Controlling Stake to Private Equity  E-mail

10/10/2017 - ATIN - Nashville-based Summit Behavioral has sold a controlling stake to private equity investors, the company said. Flexpoint Ford and certain other investors have sold out to Lee Partners and FFL Partners, two Nashville-based healthcare private equity players the press release said.The amounts involved were not made public.

Headquartered in Franklin, Tenn., Summit BHC was founded by a team of senior executives with decades of behavioral healthcare experience to develop and operate a nationwide network of addiction treatment and behavioral health centers. The Company focuses on the management of specialty chemical dependencies and provides a wide range of services to adults and families with addiction disorders through treatment centers across 10 states.

Trey Carter, Chairman, Chief Executive Officer and Founder of Summit BHC, along with his management and clinical teams, will continue to lead the company, and are committed to expanding Summit BHC's business to meet the company's mission: delivering quality and innovative chemical dependency and addiction disorder services in a caring and supportive environment. "We are pleased to have the support of partners with a long term track record of building market-leading healthcare businesses, who share our vision for clinical excellence in patient care," said Carter. "Flexpoint Ford has been a truly valuable partner and we have thoroughly enjoyed our relationship with them which allowed us to grow the Company from three to thirteen facilities."

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Google Board Cuts $1B Addiction AdWord Market Off At Knees  E-mail

10/07/2017 -ATIN - In an unusual decision made at Google's highest levels - probably its board - the iconic tech giant has cut what was once a highly vibrant and thriving addiction treatment Adwords market off at the knees, a market that Treatment Magazine estimates could easily have topped $1B a year in ad purchases.

It is impossible to overestimate how unusual Google's moves - they have ressentially closed addiction kryword marketing, claiming widespread deceptive marketing tactics - have been. We believe it represents a dangerous precedent for politically motivated interference in the Adwords marketplace, which functions as a kind of stock market for ad pricing. It is no exaggeration to say that Adwords represents one of the greatest efficiency leaps in the history of capitalism, finally bringing to the huge ad markets the kind of price discovery modeling the economy had long been used to in securities, commodities and other key marketplaces.

Madison Ave, once the Wall Street of the advertising and marketing fields, was for decades a bloated hotbed of corrupt business relationships where trying to make sense of why and how hundreds of billions of dollars in advertising and marketing products were priced was an excercise in futility. The opacity of Madison Ave marketing and advertising markets allowed for the proliferation of low quality vastly overpaid insipid executives the lifestyles of which will be forever immortalized in the classic TV series Mad Men.

Treatment Magazine considers the Google addiction treatment Adwords story to easily be among the top five most important stories we have ever covered in the addiction treatment marketplace and certainly the most important treatment marketing story we have ever covered.

We have begun what is by far the largest and most expensive editorial effort in our nearly 15-yr history. And, as usual, you can count on us to get to the bottom of it.

Stay tuned... and, of course, thank you for reading Treatment Magazine.

Ted Jackson

Editor and Publisher

954-226-2157

 
New $10M Hotel Conversion Set to Open in Louisiana  E-mail
Addiction Treatment Industry Newswire

09/21/2017 - ATIN - A new high-end $10M hotel conversion is set to open by year's end in Louisiana, which according to reports represnts one of the largest single addiction treatment investments in the state's history. Formerly the Longbranch Hotel of Abita Springs, the new center will have 32 beds and a wide variety of the luxury amenties typical of a new build project of this scale and scope.

 
Townsend Recovery Founder Sought in Statewide Dragnet, Conspiracy To Kidnap Wife  E-mail

08/11/2017 - ATIN- The founder of Louisiana's Townsend Recovery is being sought in a statewide criminal dragnet. The tale behind this is tangled and highly disturbing, including charges of conspiracy to kidnap his wife amidst an acrimonious divorce. Michael Handley is a highly successful treatment entrepreneur who founded Townsend, a chain of outpatient clinics sold  a couple of years ago to Michael Cartwirght's American Addiction Centers for $20M+. read the AP report

Treatment Magazine

 
Florida's Lakeview Set to Expand into Metro Houston Market  E-mail

08/11/2017 - ATIN- Jacksonville-based Lakeview Health has begun work on a 10K+ square foot facility north of Houston that when it opens in Dec will be the addiction care provider's first Texas facility.  Late last year, Lakeview was acquired by The Riverside Company, a private equity firm that specializes in micro cap leveraged buyouts. The Houston area expansion is Lakeview's first major move post acquisition. The new Houston operation will be a "Florida Model" type operation, offering patrial hospitalization and IOP, with a particular emphasis on tapping into demand for continuing care services services by offering transportation services for sober living clientele and an onsite dining room for IOP clientele.

Treatment Magazine

 
AAC in Big Facility Sale Leaseback Deal With Medical REIT  E-mail

08/09/2017 - ATIN- In a type of transaction known as a sale leaseback, often used by companies to unlock liquidity from fixed assets like real estate. publcly traded American Addiction Centers has sold a number of its residential and outpatient properties to a medical REIT and enterted into lease agreements with the REIT, raising $25M.

AAC CEO and founder Michael Cartwright was not immediately available for comment.

read the press release

Treatment Magazine

 
Treatment Development Partnership Files Fed Anti-NIMBY Suit in Chicago  E-mail

08/07/2017 - ATIN - A development partnership that sought to convert a 125+ bed former boarding school property into an addiction care facility, but earlier this year was denied rezoning by a county board, has filed a major suit in Chicago federal court alleging illegal NIMBY discrimination. read the report

Treatment Magazine

 
Treatment Investor Group Closes on Big Colorado Luxury Resort Conversion Property  E-mail

08/06/2017 -ATIN- A Federal judge in Feb swept aside a NIMBY lawsuit seeking to block the sale of a Vail, CO resort to an investor group, which last week closed on the 56-room property. The group plans to start in Sept on the first $20M phase of a $136M project to convert the formerly troubled resort into what would be one of largest ultra high-end addiction care centers in the nation. read the report

Treatment Magazine

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