Magazine article Behavioral Healthcare Executive

Concord's Acquisition Model Reinforces Small Treatment Centers: A Nashville Startup Is Taking Pressure off Owners Who Want to Focus More on Their Mission

Magazine article Behavioral Healthcare Executive

Concord's Acquisition Model Reinforces Small Treatment Centers: A Nashville Startup Is Taking Pressure off Owners Who Want to Focus More on Their Mission

Article excerpt

Owners of treatment centers often feel today's business complexity distracts them more and more from their mission of helping patients in need. Many are tempted just to sell the facility outright. Concord Behavioral Health, a new startup based in Nashville, has created a joint-ownership model to respond to that market reality and help founding owners to continue their commitment to the community.

A for-profit, equity-backed organization, Concord is currently in the process of purchasing majority ownership in two facilities. Through its ownership, it will create the business backbone necessary to ensure sustainability of the centers. Ultimately Concord's goal is to acquire a network of treatment centers and shepherd them toward consistent standards in clinical care as well as financial reliability.

"Many of the owners we engaged with say they started out as individuals in recovery themselves," says Mary Pawlikowski, COO of Concord. "They developed the facility out of passion and heart and soul, but we find they're overwhelmed."

Pawlikowski says Concord is looking at smaller treatment programs that might need to vary their payer mix and begin including commercial insurance. Her own background is in the mental health and addiction space with more than 25 years of experience, and she says she has expertise in navigating the administrative burden of working with insurers.

"With so many advances and with parity and the Affordable Care Act, where commercial insurance is now available, people want to use that as part of the recovery process so they can lengthen their stay and hopefully strengthen their sobriety," she says. "We're coming in to help the facilities switch over into commercial. We're not looking at the high-end, self-pay facilities that cater to the elite. We're into facilities that can service you and me, or your neighbor or your mother or the teacher who lives next door."

Network standards

Once a property is engaged, the team then works with the owner on due diligence to make sure the deal is mutually beneficial. Concord has three basic criteria for facilities in its forthcoming network.

1. The organization must have a sound clinical base. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.