Behavioral healthcare organizations Centerstone and Seven Counties on Thursday announced plans to affiliate in a deal worth $310 million in combined revenue.
If finalized, the affiliation would create an organization with 181 locations in Florida, Illinois, Indiana, Kentucky and Tennessee, employing more than 4,500 people and serving an estimated 150,000 patients.
David Guth Jr., CEO of Centerstone, said in a statement that the two organizations "have a great deal in common," including the desire to improve upon the means by which behavioral care is delivered.
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The nonprofit Centerstone has been in operation for more than 60 years, serving 123,000 people with mental health and addiction disorders and developmental disabilities.
It also operates the research and IT-focused Centerstone Research Institute, as well as various subsidiaries dedicated to establishing integrated care clinics. Its philanthropic arm, the Centerstone Foundation, secures resources to fund the company's work.
Seven Counties Services, accredited by the Joint Commission, provides behavioral healthcare, substance use and developmental services to more than 34,000 people in numerous counties across Kentucky. It is the largest non-hospital, nonprofit employer in the Louisville metro area, employing nearly 1,400 clinical and administrative staff members.
With the letter of intent now signed, the two organizations will negotiate the terms of an affiliation agreement. This process, which includes standard legal and regulatory reviews, is expected to take 60 to 90 days.