Private equity-backed Summit BHC has announced a new acquisition in West Virginia. The behavioral health treatment company added Highland Hospital to its network for an undisclosed sum. Meridian Behavioral Health Systems, LLC is selling Highland Hospital, an inpatient psychiatric facility (131 beds) with 24 beds dedicated to psychiatric residential treatment and 91 beds for inpatient acute psychiatric needs. The stalking horse bid was at a price of $10 million.
Highland Hospital generated $3.29 million EBITDA and revenues of $27.million for 2018. Meridian acquired Highland Hospital in August 2017. The sale came from a bankruptcy auction. This deal is Summit BHC’s second in 2020, following its January acquisition of Peak View Behavioral Health hospital in Colorado, a 112-bed acute psychiatric and behavioral health hospital.
Summit BHC was founded in 2013 to develop and operate a network of addiction treatment and behavioral health centers throughout the United States. Flexpoint Ford LLC made a controlling investment in the Franklin, Tennessee-based firm in 2015 and exited in October 2017 to Lee Equity Partners and FFL Partners.
In 2019, Summit went quiet on the acquisition front, and instead, opened new treatment centers in Portsmouth, Virginia, Wichita, Kansas, and in Henryville, Indiana. The company was a bit busier in 2018, according to DSO, acquiring St. Gregory Retreat Center, a residential addiction treatment center with 56 beds located in Iowa, and Cottonwood Tucson, a 65-bed facility in Arizona.