Brentwood, Tennessee-based BrentCare Behavioral Health has recently made a significant acquisition by acquiring Modern Recovery Network. This acquisition has expanded BrentCare’s assets to include several facilities and a nationwide telehealth provider organization. With the addition of Modern Recovery Network, BrentCare now boasts two residential treatment centers and residential locations in Arizona, a partial hospitalization program in Arizona, and a residential treatment facility in Idaho.
While the terms of the deal and the completion date have not been disclosed, BrentCare Behavioral Health’s CEO, Buddy Turner, expressed his excitement about the acquisition. Turner stated, “We are thrilled to welcome Modern Recovery Network into the BrentCare family. Their commitment to clinical excellence and innovative programming complements our own, and together we will be better positioned to address the critical shortage of adolescent behavioral health services nationwide.”
Headquartered in Phoenix, Modern Recovery Network offers virtual intensive outpatient programming, recovery coaching for adults, family therapy, teen group therapy, and individual teen therapy. The company was previously held by SpringBoard Recovery, based in Scottsdale, Arizona, before being acquired by Modern Recovery Network.
BrentCare Behavioral Health is supported by the private equity fund Health Enterprise Partners, which invested in the company in August 2023. The company’s expansion efforts are focused on establishing a brand and experience that resonates with local communities and expanding within those areas to maximize relationships and learnings from the market.
The acquisition of Modern Recovery Network reflects the industry’s interest in telehealth and virtual care models. Many executives believe that the demand for telehealth services will continue to grow, but the market landscape is still uncertain due to unresolved federal regulations following the end of COVID-era flexibility.
Companies that successfully integrate in-facility services with telehealth are likely to be viewed as market leaders. In the mental health space, companies like Two Chairs have shown success in this integration, while in addiction treatment, companies like PursueCare are utilizing virtual care and digital therapeutics alongside traditional care settings.
The youth behavioral health sector has faced challenges, particularly with a shortage of specialized services for youth. The COVID-19 pandemic highlighted the lack of facilities catering to youth, and payers have reduced funding for intensive settings like inpatient and residential treatment without considering the severity of needs. Additionally, controversies within the industry have led to a negative perception of the space, emphasizing the reputational risks associated with operating in this sector.
Despite these challenges, there has been notable activity in the youth behavioral health space. Recently, a former Embark Behavioral Health executive launched a new pediatric inpatient company called Velocity Health Group. These developments underscore the ongoing efforts to address the needs of youth in behavioral health care and the importance of integrating telehealth services into traditional care settings.
