Nystrom & Associates Ltd., a leading outpatient mental health provider, is in the process of acquiring Ellie Mental Health’s Minnesota clinics. This move, still pending regulatory approval, would see the transfer of 25 Ellie Mental Health locations in Minnesota to Nystrom & Associates, further solidifying Nystrom’s presence in the state. With 42 out of their 59 locations already in Minnesota, this acquisition would bring their total number of locations in the state to 67.
According to Shannon Beaudin Klein, the Chief Marketing Officer for Nystrom & Associates, the combined company would have a total of 84 locations across five states, with approximately 1,400 clinicians providing 1.4 million mental health appointments annually. This consolidation of resources and expertise is expected to enhance the quality and accessibility of mental health services for patients in the region.
Sources close to the deal have indicated that the sale of the Minnesota clinics is part of a strategic shift for Ellie Mental Health towards a pure franchise model. Previously, Ellie Mental Health operated both corporate-owned and franchised clinics, with the Minnesota locations serving as test grounds for new initiatives and systems. However, with this acquisition, the focus of Ellie Mental Health seems to be shifting towards expanding their franchise operations.
Founded in 2015, Ellie Mental Health has experienced significant growth over the years, culminating in the recent partnership with Dallas-based franchisor Princeton Equity. This partnership, along with the investment capital received, has paved the way for new opportunities and growth for the company.
On the other hand, Nystrom & Associates, backed by private equity firm Nautic Partners, has been steadily growing its presence in the mental health care sector. With a wide range of services including psychiatry, psychology, and substance use disorder treatment, Nystrom & Associates has been at the forefront of innovation in mental health care.
In 2024, Nystrom & Associates introduced transcranial magnetic stimulation as a new service line in select locations, further expanding their treatment options for patients. This commitment to offering cutting-edge treatments and services underscores their dedication to providing the best possible care for their patients.
As both companies move forward with this acquisition, the goal is to strengthen their clinical and operational capabilities, ultimately making mental health care more accessible and effective for patients, clinicians, and communities alike. This collaboration represents a significant step towards improving mental health services in the region and ensuring that individuals in need receive the care and support they deserve.
