Outpatient mental health platform ARC Health has refinanced its debt with a $181.5 million credit facility from an unnamed lender.
Details of the development are sparse. Houlihan Lokey, the firm that handled the placement, declined to offer additional details. ARC Health has not yet responded to a request for comment. This story may be updated.
Presumably, the refinancing will enable the company in some way, potentially with a better interest rate and/or additional capital to help fund the business. ARC Health went on a two-year buying blitz that concluded in 2023. It ended that spree with 18 mergers. Since then, the company has been fairly quiet.
A review of previous communications from the company shows that it closed down several locations last year. In August 2024, it said it operated “over 100 locations and 1,400 providers.” At the beginning of the year, it said it operated “88 locations and 1,300 providers” in 21 states. The announcement disclosing the debt placement states that ARC Health operates in 20 states and has 91 locations.
Previous communications from the company indicate that it is focused on integrating its assets and pursuing de novo growth.
The Thurston Group, a private equity firm, backs ARC Health. It announced the acquisition of the company in August 2021.
In a previous interview, ARC Health CEO Vince Morra discussed prioritizing clinical quality and patient experiences as a means of winning over providers and driving profitability.
“In the behavioral health industry, if you’re providing poor quality, you are not going to make it,” Morra said.
Part of the ARC Health acquisition strategy has been to prioritize mental health providers with clinician owners who are interested in continuing to practice at the organization after the deal closes. This move is meant to continue the clinical and operational culture that previously made the acquired company successful. That, in turn, is meant to help reduce patient and employee turnover during a change of control at a practice.