A new addiction treatment organization that entered the industry last spring with acquisitions of existing programs in Tennessee and Mississippi has announced that it will be opening its first new program at the beginning of 2015, at a central Texas location yet to be publicly disclosed. The CEO of Addiction Campuses says that with service demand already strong at its existing facilities, the company could grow at a rate beyond an early projection of having 8 to 10 facilities within the next three years.
“We're running at capacity at both of our [existing] programs,” says Addiction Campuses CEO Brent Clements, who adds, “We didn't expect this to happen this quickly.” Addiction Campuses in the spring completed the acquisition of its first two programs: the Christian recovery program Spring2Life in Murfreesboro, Tenn., and the Dialectical Behavior Therapy-based Turning Point Recovery, with operations in Memphis and northern Mississippi.
At the company's inception, officials were using the name Addiction Campuses of America for their business unit, but Clements says the shorter Addiction Campuses more accurately reflects the organization's vision for establishing 30-to-90 day comprehensive treatment programs on campuses of 15 to 50 acres. He says the Texas property's 40-acre campus, featuring 60 beds, multiple buildings, ponds, an 11-line adventure course and a tranquility treehouse, “fits our model of campus care, getting our clients out and moving around.”
Mix of options
Early developments at Addiction Campuses suggest that the company's leaders are prioritizing the ability to offer a variety of service options to patients and their families, both in terms of modality of treatment and payment level and source. The common aspects lie in a significant residential length of stay followed by close monitoring through a variety of available options, with the latter also focusing on families' need for ongoing support. The Spring2Life program targeting young adult males costs around $34,000 a year, while other programs at Addiction Campuses may cost that same amount per month.
Clements hints that converting properties from other uses to an addiction treatment campus may become more common for the organization going forward. “A lot of the time we're looking at [existing treatment] models that we don't necessarily believe in,” he says of the search for acquisition targets.
In an interview back in the spring, the former American Addiction Centers executive replied ”absolutely not” when asked if he would be modeling the new organization's programming after any existing entities in the treatment field. He now says that consumers and referral sources “are just looking for something different.”
Atlanta-based Fulcrum Equity Partners led the initial financing for Addiction Campuses, with a $3.8 million equity deal. The round of funding to secure the site in Texas involved several entities, including regional bank United Community Bank, AC Real Estate Holdings, Harpeth Ventures (which worked alongside Fulcrum in the initial deal) and a number of local angel investors who pooled their capital for this initiative. Clements explains that the operational and real estate ends of the business are generally emerging with separate investment groups.
Addiction Campuses will complete a renovation process of around 90 days on the Texas site, which Clements indicates may be linked to other company expansions. This appears to be why the company has announced the expansion in general but has not specified the site or its most recent use.
He adds in regard to future expansions, “We'll go into the Northeast in the first quarter [of 2015], and into the West three or four months after that.”
Clements says Addiction Campuses already has begun to emphasize rapid engagement of individuals seeking treatment. A news release from the company this week states that admissions staff members are being trained to place a client for whom its treatment is appropriate within a one-hour time frame. At this early stage of the company's development, that often means referring the patient to another appropriate facility with an available bed—Clements says that is happening every day.
Ultimately, “You have to have a national network of partners, resources, and technology,” he says. “The time is now. We know about our clients that as quickly as they engage, they can disengage.”