Irvine, Calif.-based Discovery Behavioral Health entered a restructuring agreement that will reduce the company’s debt obligations and result in a change in majority ownership.
If approved by regulators, investment funds managed by HPS Investment Partners will assume majority ownership in exchange for a substantial reduction of Discovery Behavioral Health’s debt obligations, according to a June 2 news release from the organization. The company said the transaction is expected to provide additional financial flexibility and resources.
As part of the restructuring, Discovery Behavioral Health appointed Pete Clarke CEO and named a new board of directors. Mr. Clarke also joined the board.
Mr. Clarke has more than two decades of experience in healthcare leadership and previously held senior leadership roles at DaVita in Colorado and Fresenius Medical Care in Germany, according to the release.
Discovery Behavioral Health said its clinical leadership, licensing, accreditation and regulatory standing remain unchanged. The company operates more than 100 programs across 12 states and said all programs, referral relationships and payer contracts will continue operating without interruption.
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