Centerstone and Brightli intend to merge, a move that would create the largest nonprofit behavioral health provider in the country.
The two providers have signed a nonbinding agreement, according to a July 17 news release. The merger would create an organization with annual revenue exceeding $1 billion.
Both organizations have completed mergers and acquisitions but never at this scale, Centerstone CEO David Guth Jr. told Becker’s.
Behavioral health is facing the challenges of converging forces, Mr. Guth said, as demand surges and workforce shortages worsen.
“Both of our organizations have been working hard for a number of years to address some of the challenges in behavioral health that get in the way of people getting access to care, and to the very best science-based care,” he said. “To bring our efforts together — right now seems like the perfect time to do this.”
Nashville, Tenn.-based Centerstone provides mental health and substance use disorder services at more than 140 locations in six states, and provides veteran and military family services nationwide. Springfield, Mo.-based Brightli operates more than 220 locations in five states.
C.J. Davis, PsyD, CEO of Brightli, told Becker’s the merger could be a “tipping point” for the industry, opening up access to care at a broader scale. The combined organization could serve up to 250,000 people, he said.
“The industry is begging for a leader to take up space that has scale,” Dr. Davis said.
The move has the potential to enhance service lines, both CEOs said. As a combined organization, Brightli and Centerstone would operate more than 360 outpatient, inpatient and residential sites in nine states and serve more than 1,500 schools.
Decisions about where to expand will be made based on data, Dr. Davis said.
“The beautiful thing about the collective organization is that we can be more responsive to the data,” he said. “… We need to let the data direct us to what the people need. I can see us growing services in a lot of different areas, but what we want to do is make sure we’re taking the data and growing the right services for people.”
The deal is subject to regulatory approval and is expected to close in November. The health systems will be working closely with state regulators and payers over the coming months, Mr. Guth said.
“We know the tough work starts when the ink is dry,” he said. “We’ve had an amazing team of experts that are deeply committed to the organization, to the mission, to the people we serve. In our experience so far is that our folks are coming together collegially and working together to find solutions, the best processes, the best tools.”
