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Treatment center acquisition in Northeast seen as benefiting both parties

June 18, 2014
by Gary A. Enos, Editor
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An acquisition agreement announced between two prominent names in addiction treatment in the Northeast is being seen as reinforcing the service goals of both organizations. Pending regulatory approval, AdCare, Inc., will acquire SSTAR's (Stanley Street Treatment and Resources') addiction treatment facility in Rhode Island.

Worcester, Mass.-based AdCare's vice president of marketing and development says the acquisition will extend the continuum of care operated by his organization, which over the past year has seen a surge in demand for its existing services in Rhode Island. At the same time, the deal will allow SSTAR to focus on nurturing the growth of its programming in Massachusetts, particularly its health clinic operations for low-income individuals that integrate behavioral health and primary care services under one roof.

“We currently have outpatient services in Rhode Island, and they've doubled in volume in the past year,” says AdCare's James F. McKenna. “We see this as an opportune time to get involved further—the demand has been there.”

McKenna says the SSTAR facility in North Kingstown, R.I., which offers detox, crisis stabilization and residential treatment services, has been operating at about 50% of its maximum occupancy of late, at the same time as SSTAR operations in Massachusetts are experiencing substantial growth. AdCare, whose flagship facility is AdCare Hospital in Worcester, expects to hire additional staff and complete upgrades at the Rhode Island treatment center.

McKenna adds that SSTAR's presence in Rhode Island became challenged when it lost a state contract to serve indigent clients and tried in response to make inroads in the state's insurance market.

Leaders of the two organizations have been colleagues for years, as they each have a history of service in the Northeast that dates to the 1970s. McKenna says that in general AdCare wants to build on existing relationships with other organizations in an attempt to see more patients served, in a region currently under severe pressure from a widespread opioid abuse crisis.

“We may look at other opportunities,” he says. “I'd like to see more working together between facilities, so that if I don't have a bed, I can coordinate services with others.”

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