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Meridian Behavioral Closes Maryland Serenity Acres Facility  E-mail
Addiction Treatment Industry Newswire

07/19/2019 - ATIN - Acquisitive Meridian Behavioral Health of Minnesota will be closing its Serenity Acres center in Maryland, according filings with the state. The move at the 113 bed center will put 65 employees out of work and will be effective Aug 31.

Serenity Acres was founded by entrepreneur Larry Adler, who sold the center to Meridian in late 2016 after significantly boosting capacity earlier that year. Adler was a pioneer in bringing to the East Coast a model of treatment center mostly found in California, where state laws make it difficult to deny zoning to centers wishing to convert residential housing, in residential neighborhoods, into addiction treatment facilities. These laws gave birth to the luxury treatment hub in Malibu and a model of treatment center, which Treatment Magazine has dubbed the "six-bed model," that has exploded into more than 2,000 centers across California.

Even though no similar laws exist in Maryland, Adler was able to buy a group of seven homes near Annapolis to create Serenity Acres, with limited NIMBY interference.

Fast growing Meridian Behavioral, which is highly focused on addiction treatment, but not exclusively, has been an aggresive acquirer of addiction treatment centers nationwide, including Valley Vista in Vermont and New Beginnings of Minnesota.

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Promises Makes First Post Bankruptcy Investments PDF   E-mail
Addiction Treatment Industry Newswire

07/10/2019 -ATIN- The newly rebranded Promises Behavioral Health is making its first new investments after rising from the post bankruptcy ashes of addiction treatment giant Elements Behavioral Healthcare. Elements was the largest Chapter 11 filing in recent addiction treatment history, with the company listing $500M in debt at the time of its bankruptcy in May of 2018.

Promises is revamping its low cost, in network Right Step operation with extensive renovations to its 38K sq ft Houston facility, which will have a 60 private room capacity. The Washburn House facility, located in Massachusetts in the town of the same name, will be expanding its detox and residential bed capacity, as well as opening a new 16-bed dual diagnosis facility that is being partly funded by the state.

The public/private partnership - South Florida's Delphi Behavioral recently did a similar deal with a county government in Maryland - is indicative of the innovative approaches being taken by Promises' new management team, headed up by CEO Kirk Kureska. Kureska was brought in by new investors, treatment entrepreneur Ben Klein and BlueMountain Capital, after they gained control of Elements by buying $135M face value of the company's senior debt for just $40M.

Management has moved to close marginal operations, including the storied Promises Malibu, which nevertheless retained considerable value as one of the very few global addiction treatment brand names, thus the new Promises Behavioral moniker.

Promises now has 11 facilities in major markets like Texas, Pennsylvania and Florida.

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Landmark Recovery Launches Medicaid Treatment Brand  E-mail
Addiction Treatment Industry Newswire

07/01/2019 -ATIN- Landmark Recovery, a recently launched addiction treatment operation backed by Arizona-based senior living interests, is opening a separately branded Medicaid focused treatment business, called Praxis. Landmark's move is part of a recent trend of private treatment providers, virtually none of which used to accept Medicaid, increasingly going in-network, with a growing number beginning to focus on Medicaid reimbursement.

Landmark opened its first Praxis facility in May in Louisville. Landmark has three other facilities, all oriented toward commercial payor reimbursement, another in Louisville, one in Lexington and another slated to open Aug 1 in Carmel, IN.

Cliff and Matt Boyle founded Landmark in 2016. The Boyle family is well established in senior living, their seniors home business also having the name Landmark.

Praxis Louisville has a residential capacity of 36 beds and will offer a continuum of care, Landmark says.

The Boyles are not by any means the only senior living/nursing home players to eye or enter the addiction treatment business in recent years. Probably the most prominent example of this trend is Ben Klein, founder of Chicago nursing home operator Platinum Healthcare. About seven years ago, Klein began a pivot out of nursing homes into treatment, opening a Florida addiction center and acquiring others, forming Sunspire Health Care, which he later sold to private equity firm Kohlberg.

Klein has since emerged as among the most powerful addiction treatment industry players after he, along with partners, bought $135M face value of the senior debt of bankrupt treatment giant Elements Behavioral Healthcare for just $40M. Klein and partners have since gained control of Elements post bankruptcy, rebranding a considerably slimmed down Elements as Promises Treatment Centers.

Another new private Medicaid addiction treatment provider is Maryland-based Amatus Health, which opened a 51-bed center in Maryland a few months ago after opening two similar centers in Ohio last year.

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Newport Academy Acquires Gray Wolf Ranch PDF   E-mail
Addiction Treatment Industry Newswire

06/19/2019 -ATIN- Adolescent behavioral care specialist Newport Academy has acquired Gray Wolf Ranch, a youth focused facility based in the Pacific Northwest.

Founded about a decade ago by Jamison Monroe, backed by his family who are prominent money managers, Newport Academy has grown into one of the most successful higher end providers of addiction care for teens. Monroe, who serves as executive chairman of Newport, is an alumnus of Gray Wolf Ranch.

Veteran treatment executive Joe Procopio has recently taken over the CEO post at Newport.

Newport, which has plans to expand on Gray Wolf's 20-acre wilderness property, offers residential, outpatient and day therapeutic schools services at campuses in Southern and Northern California, Connecticut, Pennsylvania and Maryland.

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RCA in Huge Expansion, Midwest and South PDF   E-mail
Addiction Treatment Industry Newswire

06/11/2019 -ATIN- Recovery Centers of America is launching a major expansion into addiction treatment markets in the Midwest and South from its Northeastern base. RCA, founded by Philadelphia real estate developer Brian O'Neill, plans on hiring an additional 250 employees in the near future.

The move is a major validation of the local catchment client acquisition business model, a trend Treatment Magazine began reporting on years ago - RCA calls it "neighborhood-based" - and stands in stark contrast to the sagging fortunes of those centers predominantly employing the "destination" client acquisition model that for years drove the private side of addiction care. American Addiction Centers, heavily reliant on Internet marketing and the destination model, last quarter reported huge loses and is desperately searching for liquidity to shore up its balance sheet.

RCA, which has six centers in the Northeast, is arguably the top example of the local catchment model.

The company, which has employed a mix of acquisitions and greenfield development in its growth, is well funded, backed as it is by Chicago-based private equity firm Deerfield Management. RCA has raised at least $330M, including a $100M tranche in 2015. RCA's capital raising deals are among the largest and most successful in the history of addiction treatment, on a par with the former CRC Health Corp, now part of Acadia, with Bain Capital, a $750M deal that at the time was the largest in treatment history and still ranks among the biggest.

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Hanley Foundation Names New Public Policy Chief  E-mail

06/10/2019 -ATIN- The Hanley Foundation has named former Life of Purpose, LOP,  CEO Andrew Burki as its new public policy chief after LOP recently declared bankruptcy following its acquisition last year by Fulcrum Equity Partners' City Line Behavioral, formerly Liberation Way.

Burki is a well known treatment and recovery advocate whose credentials include stints on federal SAMHSA task forces and Florida's sober home task force. His new duties will include raising grants to further the mission of the non-profit Hanley Foundation.

The Hanley Foundation is now distinct from the Hanley Center treatment provider, both of which are based in West Palm Beach and both founded by Jack and Mary Jane Hanley. Jack Hanley, who made a fortune in the 1970s as CEO of agricultural bioscieces giant Monsanto, invested part of that fortune to set up the ttwo organizations.

But a deal for Hazelden to mange operations at the Hanley Center began to fall apart in the late 1990s. Hanley Center struck out on its own but soon ran into financial difficulties. Caron then acquired the center, but sold it to the Levenson family's for-profit Origins Behavioral Healthcare of Texas. The Levensons several years ago sold Origins to the billionaire Rowling family of Texas.

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READ our Special Report on Jack Hanley

Record NIMBY Settlement Reached, Developer Maxxam Will Take NIMBY-Busting Expertise National PDF   E-mail
Addiction Treatment Industry Newswire

-ATIN- Real estate development and capital investment firm, Maxxam Capital, is leveraging its real estate and NIMBY-busting expertise into a business model. After an epic NIMBY battle near Chicago, Maxxam filed a $68 million lawsuit that resulted in a record $5.5M settlement and the issuance of their zoning and development approvals.  Now Maxxam is going national with its expertise, working with addiction treatment operating partners and investors to bust barriers at NIMBY hot spots all over the country.

"This win validates a scalable platform based on our proven zoning expertise. We are ready to partner with other operators in the industry to reactivate failed projects and obtain the zoning and development approvals needed to build a new residential treatment facility," say Maxxam founders Steven Marco and Adam Glassberg.

"We are committed to making access to residential treatment available to people in all communities. "

At any given time, there are dozens of addiction treatment NIMBY - not-in-my-backyard - fights going on across the nation, and Treatment Magazine has reported on hundreds over the past fifteen years. Along with antiquated Medicaid rules and widespread flouting of state and federal parity laws, NIMBY is among the top impediments to desperately needed access to treatment.

After years-long bruising court battles in state and federal courts, four appeals, and twenty-three zoning and other county board meetings, the partners achieved a sweeping victory. The property is located in the Chicago Metropolitan Area in western suburban Kane County.

Maxxam's plan was to develop of the 120-acre, 100,000 sq ft campus to provide over 180 treatment beds and a full continuum of care, integrating newly developed technologies like mobile applications that help patients maintain their sobriety.

In addition to the monetary settlement, Maxxam received everything that it desired in terms of land use and other concessions, as well as an unprecedented "Consent Decree" that will have the federal government oversee Kane County's compliance with the agreement.

In 2017, famed British actor Russell Brand, who is vocal about being in recovery, interviewed Steven Marco in London for ASPIREist, a CNN/HLN Cross-Platform Millennial News Program. They discussed Maxxam's project and the NIMBY battle. Brand has been a longtime advocate for Maxxam's cause of making treatment options more accessible.

The interview can be viewed on Maxxam's website: www.maxxamcapital.com

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Former Liberation Way Execs Charged With Fraud  E-mail

04/24/2019 -ATIN- Liberation Way founders have been charged with wrongdoing, mostly with defrauding insurance cos by scheming to maximise stay lengths. Pennsylvania's attorney general annouced a raft of charges against seven individuals, including the late Dallas Fetterman and Jason Gerner, founders of the center.

Private equity firm Fulcrum Partners, which owns the center, had lodged numerous complaints after purchasing the center. The investor group recently brought in well known treatment executive Drew Rothermel, a former top Caron exec and former CEO of Origins Behavioral of Texas, to clean up the mess left by the founders. Fulcrum is also suing for redress.

Jason Gerner, the cofounder of Liberation Way, which has locations in Yardley, Bala Cynwyd and Fort Washington, Montgomery County, is among those who authorities say pocketed millions of dollars from insurance claims while luring patients into a cycle of ineffective treatment resulting in unsafe living conditions and multiple relapses. Some patients were cycled through the treatment process as many as eight times, a grand jury investigation found.

"The owners and operators of Liberation Way showed blatant disregard for the well being of the people they were supposed to help, and for the opioid epidemic that is ravaging our communities," said Attorney General Josh Shapiro. "This public health emergency is my top priority, and our actions to combat this crisis include prosecuting those who illegally profit off substance use disorder."

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Aetna Leads $25M Financing for Aftercare Outsourcer MAP  E-mail
Addiction Treatment Industry Newswire
03/09/2019 -ATIN- In the culmination of years collaboration, where extended care services outsourcer MAP Health Management has sought to sell major health insurers on backing a chronic disease model of care for addiction, plan sponsor giant Aetna is leading a $25M first round financing for MAP.

The Levenson family, the founders of Origins Behavioral Healthcare of Texas,  and other private investors are also participating in the Series A financing, which include preferred shares.

Levenson family scion Jacob Levenson is the CEO and founder of MAP. He has spent millions on system development to meet the rigorous security and other requirements for full integration for reimbursement into Aetna in particular, but with other large insurers as well.

Late last year, MAP inked a deal with Horizon of New Jersey, bringing to 26 million the number of covered lives in 12 states that are able to tap directly into MAP's array of extended care services.

A large part of the financing will go toward hiring 25 new employees, who will be embedded at treatment centers nationwide and whose job it will be to make sure that those clients who are covered for MAP aftercare services take full advantage.

Says Antonio J. Rocchino, Aetna's Sr. of Network Management:: "Aetna and MAP have built a strong collaborative relationship over the last four years. We continue to expand our relationship with MAP and believe that MAP's services are effectively helping Aetna members in their recovery from Alcohol and Drug Addiction.

In providing peer support to our members and their families in their behavioral health recovery journey, MAP's services support one of the core components in our work to transform behavioral health service delivery. We look forward to a continued and expanded relationship with MAP as a valued partner."

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Discovery Behavioral, formerly Cliffside Malibu, Hires New Marketing Chief PDF   E-mail
Addiction Treatment Industry Newswire

01/11/2019 - ATIN- Discovery Behavioral, formerly Cliffside Malibu, has hired Sandra Sellani as its new marketing and sales chief, a direct report to CEO John Peloquin. A battle hardened veteran of the ruthlessly competitive for-profit behavioral health marketing trenches, Sellani worked sales and marketing at Charter Medical at a time when Charter was briefly the nation's largest for-profit behavioral health provider, before managed care brought debt heavy Charter down, along with the rest of the industry.

Prior to joining Discovery, Sellani worked a variety of senior marketing roles at companies either directly in medical services or in industries closely related, including NVISION Eye Centers. Known among her marketing peers as an expert in rebranding, Sellani transformed the former TLC Laser Eye Centers into NVISION.

No doubt it was Sellani's demonstrated expertise, as well as ability to execute, in rebranding that attracted Peloquin. He is seeking to shed Cliffside Malibu's niche high end image, building an image instead that more closely conforms to the diversified behavioral health concern Discovery is growing into..

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Hackensack NJ Med Surg Acquires Venerable Carrier Clinic  E-mail

01/08/2019 - ATIN - Hackensack Meridian Health, New Jersey's largest med surg with 17 hospitals, has acquired one of the nation's most venerable behavioral health and addiction care providers, Carrier Clinic of Belle Mead, NJ.

While there have been a number of behavioral health and med surg tie-ups in recent years, the Hackensack/Carrier deal clearly stands out as among the very most comprehensive and important, representing investments of many tens of millions over many years.

The hundred-year-old Carrier is already one of the most formidable addiction treatment competitors on the national stage, and is now set to become even more so with the Hackensack merger. As part of the deal, Hackensack has committed to making a big $25M facilities investment updating the Carrier campus in Northern New Jersey.

And using the Carrier brand, the first of a series of new NJ addiction centers is slated to open later this year, investment that is over and above the $25M Carrier campus commitment.

And furthering a trend that is rapidly gaining strength nationwide, Hackensack urgent care centers will shortly begin to offer fully integrated Carrier branded behavioral health and addiction care services as medical services providers seek to shed the "orphan" status that addiction treatment has typically held within the industry.

A multi-disciplinary team of experts including primary care physicians, psychiatrists, and advanced practice nurses will closely coordinate all needs - addiction treatment, routine care, mental health issues - to provide optimal treatment throughout the 17-hospital network.

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AAC Announces Restructuring, Layoffs Amid Big Operating Loses PDF   E-mail
Addiction Treatment Industry Newswire

12/07/2018 -ATIN- Struggling American Addiction Centers (NYSE: AAC) will be restructuring its operations in the wake of earnings reports showing that the provider is bleeding red ink. The restructuring includes the appointment of new executives in the c-suite as well as 100 layoffs, many at the company's headquarters just outside of Nashville.

CEO and founder Michael Cartwright told Treatment Magazine that the layoffs amount to between 3% and 4% of the company workforce.

AAC's stock is trading near all-time lows and Cartwright is betting that new talent in the c-suite will right the AAC ship - specifically new operating chief Michael Nanko as well as Stephen Ebbett, who will run marketing.

The company also will be looking at a "strategic alternative" (read: a sale) for its Townsend brand outpatient operations in Louisiana. AAC will also be seeking to merge outpatient and sober living assets in the San Diego marketplace.

Despite losing more than $7M on an operating basis in Q3, AAC says it remains optimistic as it "participates in an addressable market (the treatment market) that management believes is in excess of $30 billion with attractive underlying industry trends, contributing to market growth in excess of 4% per annum"

However, even as demand for services is exploding amid an unprecedented addiction epidemic, the treatment industry is not seeing a corresponding increase in revenues. The problems at AAC, as well as the bankruptcy of industry giant Elements Behavioral, are symptomatic of the difficult operating environment being felt in the industry.

Hundreds of treatment centers, some estimate as many as 800, have closed their doors in recent years. This coming amid intense competition from medical surgical hospitals, who have been building new treatment centers on their campuses at a rapid clip. Also, many new players are employing a local catchment client acquisition model - Brian O'Neill's East Coast Recovery Centers of America is a key example.

Particularly hard hit have been the treatment center hubs, especially Florida, as the "destination" treatment model - based largely on attracting those with out-of-network benefits - appears to be broken. Insurers are increasingly refusing to pay any out-of-network benefits at all.

And this is occurring as marketing costs skyrocket - particularly Google Ad Sense - putting providers in a vice grip between falling reimbursement and rising expenses.

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Methadone Treatment Giant Settles Wrongful Death Claim for Huge $10.5M PDF   E-mail
Addiction Treatment Industry Newswire

12/05/2018 - ATIN- Methadone treatment giant New Seasons, formerly called Colonial Management Group, has settled a wrongful death claim out of South Carolina for a staggering $10.5M, one of the biggest wrongful death settlements in addiction treatment industry history.

Details of the settlement are sketchy as non-disclosure was a key requirement of the big payout. New Seasons has said however that the settlement has exhausted the limits of its liability insurance coverage. The lawsuit involved a client of its West Columbia, SC clinic who killed three people in an auto crash while under the influence of drugs.

Founded in the mid-1980s as Colonial Management Group, New Seasons has grown into a for-profit giant with about 100 clinics in 28 states. Before the introduction of Suboxone, and the growth of new MAT clinic chains in recent years, New Seasons was the biggest methadone clinic company in what was a $1B a year national methadone marketplace.

Around the year 2000, CRC Health Corp., now part of publicly traded treatment behemoth Acadia Healthcare, overtook Colonial as the largest methadone clinic operator through an aggressive acquisition rollup campaign of mom-and-pop clinics across the country.

The notion of the methadone clinic has become somewhat outdated due to the growth of Suboxone, which was developed and manufactured by the former Reckitt Benckiser Pharmaceuticals, now called Invidior. At its zenith Suboxone was a gigantic seller for Reckitt Benckiser, selling $2B a year globally, now down to $1B due to generics competition.

Last week Invidior shares tanked by over 60 percent when a New Jersey federal judge lifted a temporary injunction thereby allowing the widespread marketing of generic Suboxone, a move seen as opening the floodgates for much cheaper buprenorphine-based pharma products and the end-of-line for the monopolistic hold Invidior for years held on the buprenorphine marketplace.

New Seasons executives were not immediately available for comment.

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Discovery Behavioral Acquires Ambrosia's NJ Facility PDF   E-mail
Addiction Treatment Industry Newswire

12/04/2018 -ATIN- Fast growing West Coast provider Discovery Behavioral, formerly Cliffside Malibu, has acquired Ambrosia Treatment Center's facility in New Jersey, Discovery's first M&A foray outside of California. Ambrosia still retains three centers in Florida and one in California.

Last year, Cliffside Malibu founder Richard Taite recruited well known treatment exec John Peloquin from Acadia with a mandate to grow the Cliffside platform, which had already expanded from its high end Malibu center roots to include outpatient as well as more affordable centers in So Cal.

Peloquin has since rebranded Cliffside as Discovery Behavioral and in September beefed up the c-suite with the recruitment of a new COO and a new CFO.

The facility in Medford, NJ is a large residential one on 40 acres directly adjacent to a state park. It is ideally suited to service the huge population center along the NYC/Philadelphia corridor.

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Invidior Shares Slammed After Bup Generics Court Ruling  E-mail
11/21/2018 -ATIN- Expecting cutthroat competition in the buprenorphine pharmaceutical marketplace, a more than $1B blockbuster pharma sector, investors pummeled the shares of the former Reckitt Benckiser, now called Invidior, after a federal court lifted an injunction against the introduction of buprenorphine generic drugs.

Invidior, the developer of buprenorphine, which is the company's sole pharma product, has long kept prices of the drug high, extending and milking patents by tweaking the formula - adding naloxone to make Suboxone and now offering monthly injection Sublocade - and by going to court to keep generics competition off the market.

The importance to Invidior of the legal fight, which has played out in New Jersey federal court, became abundantly clear this week after a federal court lifted a preliminary injunction against Indian generics manufacturer Dr. Reddy's Laboratories, one of three companies planning to introduce generic buprenorphine. Investors have driven Invidior shares more than 60 percent lower after the ruling.

Dr.Reddy's Laboratories plans to introduce generic Suboxone, good news for consumers who have paid cash pay prices of hundreds of dollars a month for their daily maintenance dose of Suboxone. Suboxone is also used extensively to taper opiate addicts while detoxing.

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Silver Hill Appoints New President and Medical Director PDF   E-mail
Addiction Treatment Industry Newswire

11/13/2018 - ATIN- Nationally renowned Silver Hill Hospital, a nearly 90-yr-old private psych hospital with a storied history, has appointed a new president and medical director. Dr Andrew Gerber was recruited from the famed Austin Riggs Center in Massachusetts, where he was CEO and medical director.

Dr. Gerber's appointment at Silver Hill is one of the most prestigious positions in American psychiatry and behavioral health. He is a Harvard med school grad, with a long list of behavioral health and psychiatric bona fides, including associate and adjunct professorships at Yale and Columbia.

Silver Hill Hospital admits more than 3,000 adolescents and adults annually for disorders that include addiction, depression, bipolar disorder, eating disorders, personality disorders and schizophrenia among others.

The hospital sits on a unique suburban campus, 44 acres in New Canaan.


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Long Island Med Surg in Huge Addiction Center New Build PDF   E-mail
Addiction Treatment Industry Newswire
11/01/2018 -ATIN- In one of the biggest projects in contemporary addiction treatment industry history, Northwell Health, a Long Island med surg, in a partnership with New York real estate developer Engel Burman are building a big addiction treatment and research facility in the town of Riverhead on Long Island.

To be called Wellbridge, the new $90M center will sit on 40 acres in the Calverton Research Park, and have 80 beds, along with an addiction research program. Groundbreaking was held this morning.

The partnership between Engel Burman, active in the New York tri-state real estate market, and Northwell Health, a huge non-profit with 20 med surg hospitals, is a unique collaboration that will last long after construction is completed late next year. Engel Burman will remain as an operating partner, managing all non-clinical operations at Wellbridge.

Currently Engel Burman is conducting a nationwide search for an executive director to head up the new Wellbridge center.

"Wellbridge will serve as a learning laboratory that provides traditional and alternative treatments, giving addiction specialists and researchers the ability to assess the short- and long-term progress of clients, identify clues to improve therapies and prevent relapse, and study the neurobiological effects of addiction through brain imaging and other neuroscience investigational methods," according to a press release announcing the ground breaking.

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ARS Teams With South Jersey Med Surg in Big Addiction Center New Build PDF   E-mail
Addiction Treatment Industry Newswire
10/29/2018 -ATIN- South Florida-based Advanced Recovery Systems, a rapidly expanding specialty addiction treatment provider, has teamed with South Jersey's Cooper University Health Care to build a new addiction treatment center in Cherry Hill, NJ, which is considered to be part of Philadelphia's metro market.

The $27M new build, one of many integrated centers being built nationwide by medical surgical providers, is slated to open in late 2019, will have 90 beds and extensive amenities. The synergies with Cooper's med surg operations are extensive, with Cooper saying it treats as many as 20 people every day for substance use disorder in its emergency room.

ARS is one the fastest growing addiction treatment providers in the nation, with operations in five states, including Florida and Colorado. ARS was founded by Mitch Eisenberg, along with renowned addiction doc Lewis Gold. Eisenberg is the co-founder of Sheridan Healthcare, a medical services outsourcing concern.

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Alkermes Posts Strong 3Q Sales Uptick for VIVITROL PDF   E-mail
Addiction Treatment Industry Newswire
10/25/2018 -ATIN- Sales of pharma Alkermes' MAT therapeutic intervention VIVITROL jumped 15% in the third quarter to almost $80M, with Dublin-based Alkermes predicting that full year 2018 sales of the anti-craving med would reach a range of between $300M and $330M.

VIVITROL is clearly benefiting from the strenuous efforts of health insurers and public health policy makers to find solutions to the addiction epidemic, which has finally gained centerstage in the national healthcare debate in the wake of blanket media coverage around opiate use disorder. President Trump just this week signed a batch of bills that will unleash $8B in federal funding to fight drug addiction, of which MAT therapeutic interventions like VIVITROL will be substantial beneficiaries.

There are only a tiny handful of MAT interventions for addiction. VIVITROL is among the most prominent of these, but is far behind the blockbuster billion dollar buprenorphine compound of which Suboxone is the best recognized brand. VIVITROL is a monthly injection of the naltrexone compound, a drug that has been available in very cheap generic form for decades.

Alkermes launched VIVITROL to great fanfare over a decade ago, forming a marketing partnership with Cephalon, now part of pharma giant TEVA Pharmaceuticals. For years Alkermes had trouble pushing annual sales of VIVITROL past $20M, despite spending heavily on marketing.

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$8M High End Detox Opens in Manhattan PDF   E-mail
Addiction Treatment Industry Newswire

10/23/2018 -ATIN- In a major development in the difficult NYC addiction treatment market, which is beset by daunting regulatory and cost barriers, a new detox has opened its doors just off Park Ave on the upper East Side, an $8M treatment project that has been years in the making.

Behind the new Ascendant center is an anonymous, wealthy West Coast backer who has long been concerned about the addiction problem and who, when he saw a huge NYC market bereft of specialty addiction centers, was surprised.

"He soon learned why it's like that in NYC," says Shari Noonan, former head of the New York state addiction regulator OASAS. Noonan was brought on at Ascendant to navigate NY's byzantine and expensive regulatory shoals. Along with Robin Goldman, a savvy executive with extensive experience in startups and tech, the two have brought the unique center to fruition, just this week breaching the JCAHO accreditation hurdle.

In a testament to the high barriers to entry in the NY addiction market, barriers that have stopped national players like the former CRC Health Corp. and Michael Cartwright's AAC at the state line, Ascendant has spent four years dealing with certificate-of-need level regulatory scrutiny, as well as the tough real estate exigencies of Manhattan.

But now that Ascendant has surmounted the barriers, it is in an enviable competitive position in the NYC market. "It's early now, but we expect to eventually leverage our licensure and expand out the care continuum and also by opening new locations within the five boroughs," says Goldman.

Ascendant took a 20-yr lease and completely transformed a townhouse on East 60th, designing a striking, modern new entrance for the 18-bed detox, which has nearly 70 employees.

Ascendant will be operating on an out-of-network reimbursement model, accepting all major insurance and will offer all the amenities and therapeutic interventions that luxury, highly individualized care demands. The facility expects to have extensive referral relationships with quality treatment providers nationwide.

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MAP Signs Big Addiction Chronic Disease Model Deal With NJ’s Top Health Insurer PDF   E-mail
Addiction Treatment Industry Newswire

10/19/2018 - ATIN- MAP Health Management, the addiction telehealth aftercare services outsourcer based in Austin, has signed a key deal with NJ's largest health insurer Horizon Healthcare Services to deploy MAP's Peer Recovery Support Service, PRSS, to Horizon's 3.8M covered lives.

When combined with a similar deal reached with Aetna previously, MAP now has 26M covered lives in 12 states, with 3000 detox, residential beds/ IOP seats contracted to discharge into MAP's aftercare services. MAP is by far the nation's largest specialty addiction aftercare services concern.

MAP CEO Jacob Levenson, a scion of the Texas entrepreneurial family that founded Origins Behavioral Healthcare, sold last year to the billionaire Rowling family of Dallas, founded MAP in 2011 with the aim of improving addiction treatment outcomes by pushing a chronic disease model of care, launching PRSS for that purpose. The chronic disease model has been the mantra of top treatment executives and clinicians for two decades, but Levenson has put his money where his mouth is, spending millions to build a platform that meets the data integrity standards of the nation's top health insurers.

With 100 employees at MAP, and looking to aggressively recruit more, Levenson says the key to success with payors when it comes to the chronic disease model is proving that it delivers cost savings, something treatment outcomes studies have mostly failed to do conclusively.

"If you can't show that emergency room visits are down, as well as non-routine medical visits and the like, then you are going to fail to get the attention of the payors," says Levenson. "We are putting a book end around the addiction treatment outcomes conversation with our deliverable outcomes data for the payors."

Levenson, after years of effort, is finally within sight of building an aftercare services product that will provide a recognized benchmark for measuring outcomes success with the payors. He says that in two years MAP expects to have signed deals with health insurers with over 100M covered lives in at least 29 states.


READ OUR story on MAP's deal with Aetna, LISTEN to MAP's webinar with top Aetna Behavioral Health executives

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