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JEVS Human Services has a preliminary agreement to acquire Northeast Treatment Centers’ mental health and addiction treatment services, the two Philadelphia nonprofits announced Monday.
The transaction, targeted for completion by the end of this year, comes as funding turmoil for behavioral health services is expected to intensify in coming years, especially as new Medicaid rules expected to reduce coverage take effect next year.
“We’re seeing thinner and thinner margins,” said Regan Kelly, CEO of Northeast Treatment Centers. “We’re breaking even, so we’re not in a crisis. But I think as we look to the future of the kind of investments that are needed, we have no room for investment.”
The announcement of the deal between JEVS and Northeast Treatment Centers comes on the heels of decisions by the Council for Relationships to close and by Main Line Health to shutter its Women’s Emotional Wellness Center in next month.
Northeast Treatment Centers is on track for $54 million in revenue this year, Kelly said. The businesses going to JEVS account for an estimated 35% to 40% of that revenue, she said.
JEVS is significantly larger, with $132 million in revenue in the year that ended June 30, 2025, according to its audited financial statement.
JEVS is best known for its workforce development programs and services for people with intellectual and developmental disabilities. The deal with Northeast Treatment Centers expands its footprint in behavioral health and addiction treatment.
“We’re a sizable institution,” said JEVS CEO Cynthia Figueroa. “We have strong fundraising capabilities and other resources that put us in a place where we can absorb some of the hits” that are harder to take at organizations with less financial liquidity, she said.
JEVS plans to take over five locations in Philadelphia and Wilmington. They provide mental health services for children and families, inpatient and outpatient addiction services, medication assisted treatment, drug and alcohol case management, and other services.
As is typical in transactions involving two nonprofits, no money is changing hands. The point for Northeast Treatment Centers was to find a home for the services, which treated more than 11,000 people in fiscal 2025 that ended last June.
The nonprofit employs a total of 600 people, and about half of them are expected to move to JEVS, which does not plan job cuts.