(Article written by Wayne Heilman for The Gazette)
A Tennessee provider of addiction treatment and behavioral health services has acquired Peak View Behavioral Health, which operates a 112-bed psychiatric hospital in northeast Colorado Springs.
Summit BHC, of Franklin, Tenn., which operates 19 addiction treatment and behavioral health centers in 14 states, said last week it bought Peak View from Memphis, Tenn.-based Strategic Behavioral Health; it will be Summit’s first facility in Colorado.
Jeff Barnett, Summit’s chief operating officer, said Tuesday that all 322 Peak View employees, including CEO Ty Meredith, have been retained and no changes are planned. The deal has been in the works since summer; terms were not disclosed.
“Peak View is a well-run psychiatric hospital, and that is one of the reasons we bought it,” Barnett said.
“They are running at a high occupancy rate, but there is some excess capacity, and as a result, opportunities to serve more people. We are looking at needs in geriatric psychiatric, substance abuse and adolescent services and other underserved populations.”
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The Colorado Health Institute found last year that about 382,000 Coloradans said they couldn’t get the mental health treatment they needed. An additional 67,000 people were in need of substance abuse treatment.
“All of the data points to an underserved marketplace (for behavioral health services in the Colorado Springs area). Summit doesn’t use a cookie-cutter model. We will focus our services where there is community demand,” Summit CEO Jon O’Shaughnessy said.
“One of the issues I see (in the southern Colorado area) is chemical dependence. Peak View is a provider of detox services, and we also provide rehabilitation and step-down services.”
Strategic Behavioral Health, which operates 11 other behavioral health facilities in Colorado and five other states, opened Peak View in 2009, converting a former hospice building into a 24-bed hospital.
Peak View more than tripled in size with the building of a new facility three years later, next to St. Francis Medical Center at Woodmen Road and Powers Boulevard. The hospital started a new inpatient and outpatient program for adolescents in 2013 and completed a $5 million expansion in 2016 that included a 20-bed inpatient unit for children and adolescents.
In November, Peak View opened an outpatient clinic in Lone Tree and launched an outpatient chemical dependency program for adolescents. Peak View also is studying plans to open a second outpatient clinic this year in southern Colorado, where additional behavioral health services are needed, Barnett said.
“This is an exciting time for Peak View as we look to grow our services and reach a larger population of people who are in need of care,” Meredith said in a news release.
“Partnering with Summit allows us to do just that. While our quality programs and services will remain the same, we are joining a successful network of care providers across the country who hold the same values we do.”
Summit was started in 2013 and grew mostly by acquisition before opening three addiction treatment centers last year in Indiana, Kansas and Virginia.
Lee Equity Partners and FFL Partners, private equity firms that specialize in health care among other industries, acquired a controlling interest in Summit in 2017 from Flexpoint Ford and other investors in a deal to finance the company’s next round of growth.