HPS takes majority stake in Discovery Behavioral Health
Under a debt-for-equity restructuring, the behavioral health provider will reduce debt while keeping more than 100 programs operating across 12 states.
Takeaways
- Discovery Behavioral Health is a provider of evidence-based behavioral health treatment for mental health, eating disorders, and substance use disorder.
- HPS is acquiring Discovery Behavioral Health.
- The target serves patients with mental health, eating disorders, and substance use disorders across United States.
A debt-for-equity restructuring will put HPS in majority ownership of Discovery Behavioral Health, an Irvine, Calif.-based provider of evidence-based treatment for mental health, eating disorders and substance use disorder.
The company operates more than 100 programs across 12 states for children, adolescents and adults, spanning residential treatment, partial hospitalization, intensive outpatient care, virtual services, psychiatric services and transcranial magnetic stimulation.
Investment funds managed by HPS will assume control in exchange for a substantial reduction of DBH's debt obligations, subject to regulatory approvals and other consents.
DBH appointed a new board and CEO Pete Clarke as part of the restructuring, while clinical leadership, licensing, accreditation and regulatory standing remain unchanged.
The company said its programs, referral relationships and payor contracts will continue operating without interruption.
Terms were not disclosed.
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