In January, a federal bankruptcy court judge approved the sale of Wellpath’s behavioral health division. The transaction was completed Jan. 30, according to a news release from Recovery Solutions.
Wellpath filed for bankruptcy in November. The company sold Recovery Solutions to a group of its lenders.
Under new ownership, Recovery Solutions plans to expand its geographic reach, according to the release.
“This transition to an independent organization will allow us to reach more patients facing these challenges of mental illness and continue providing the same quality services,” Jeremy Barr, CEO of Recovery Solutions, said in the news release.
Recovery Solutions operates several civil and forensic inpatient hospitals in seven states and provides partial hospitalization and outpatient programs. The division also operates two residential treatment facilities in Southern California. According to the news release, the company is the largest provider of behavioral health services on behalf of public entities in the U.S.
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