Ethema Health Corporation, a leading behavioral healthcare company, has recently announced the signing of a Letter of Intent (LOI) to acquire Edgewater Recovery Center (ERC) in Morehead, Kentucky. This strategic move will allow Ethema to expand its presence in the substance use disorder treatment sector and further enhance its in-patient treatment programs.
Under the LOI agreement, Ethema will purchase all of the assets of ERC, including the operating company and three real estate holding companies that own the treatment centers’ properties. The acquisition is expected to be completed by January 31, 2025, or earlier, subject to the necessary approvals.
ERC operates treatment centers primarily in Morehead and Paducah, Kentucky, with a total of approximately 440 licensed beds across all locations. In addition, ERC has plans to add another 66 beds in Paducah in 2024. The current client census is around 170, and Ethema aims to maintain this level of care and expand the business to reach its goal of 500 beds by the end of 2025.
This acquisition presents an opportunity for Ethema to diversify its in-network insurance strategy by providing care to Medicaid insured clients through ERC’s operations in Kentucky. By focusing on client safety, care, and the best programming possible, Ethema aims to ensure positive outcomes for individuals seeking treatment for substance use disorders.
Shawn Leon, CEO of Ethema Health Corporation, expressed enthusiasm about the acquisition, stating, ‘This opportunity is massive and will propel us to our 500-bed target much sooner than anticipated. We are committed to maintaining our principles of client safety, care, and operational efficiency to ensure profitability and further growth. We are honored to have been chosen as the buyer for this sought-after opportunity and look forward to becoming the provider of choice in the state of Kentucky.’
Ethema Health Corporation specializes in the treatment of substance use disorders and has a proven track record in in-patient treatment for adults. The company will continue to develop innovative programs and techniques to address the growing need for behavioral healthcare services in North America.
For more information about Ethema Health Corporation and its services, please visit their website at www.ethemahealth.com.