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Home » AtlantiCare completes acquisition of South Jersey recovery center – The Business Journals

AtlantiCare completes acquisition of South Jersey recovery center – The Business Journals

AtlantiCare has completed its acquisition of the John Brooks Recovery Center in a deal the health system said makes it South Jersey’s largest provider of mental health services, substance use/addiction recovery services, and family care social services.
Financial terms of the transaction are being kept confidential.
Founded in 1969 and based in Pleasantville, John Brooks Recovery Center’s services include a residential treatment facility, outpatient opioid and substance use treatment programs, sober living housing, a primary health care clinic for individuals with Hepatitis C, and community peer recovery centers.
Lori Herndon, CEO of AtlantiCare, said the Egg Harbor-based health system has spent nearly three decades addressing the growing need for services to support individuals with behavioral health, substance use disorder, and co-occurring health issues.
“This acquisition is the next step in ensuring we continue, expand and enhance this care,” Herndon told the Business Journal. “By combining our complementary behavioral health capabilities, AtlantiCare and [John Brooks Recovery Center] will broaden and deepen our ability to provide the quality, progressive care that is essential to long-term recovery and overall quality of life.”
The deal calls for AtlantiCare to acquire the recovery center’s assets and assume its liabilities. According to its 2020 financial records, the most recent year available, John Brooks Recovery Center had assets of $25.2 million and liabilities of $19.4 million. The center posted revenue of $11.6 million and recorded a loss of $658,000 in 2020.
“The pandemic dramatically increased the need for these services while also affecting the viability of organizations that provide this critical care, including John Brooks Recovery Center,” Herndon said. “Through this acquisition, AtlantiCare is ensuring the exceptional care and critical services [the center] provides continue.”
Michael Santillo, previously CEO of John Brooks Recovery Center, will continue to have oversight of the center as its director.
Santillo said the two organizations previously worked together in providing care for patients and addressing the opioid epidemic and other behavioral health issues.
“We are excited about this opportunity to be part of AtlantiCare,” he said. “Together we will have more opportunities to provide more patient-centered care. This will include streamlining and enhancing transitions of care and continuously supporting individuals impacted by substance use disorders — which is so vital to long-term recovery.”
With the recovery center’s 229 employees joining AtlantiCare, the health system will have nearly 6,000 staff and care providers.
AtlantiCare operates more than 100 care locations in Atlantic, Burlington, Camden, Cape May, and Ocean counties.
Herndon said AtlantiCare is also expanding its “already extensive” mental health services in order to more broadly meet the community’s increasing needs for such care. The health system provides mental health services through AtlantiCare Regional Medical Center and its AtlantiCare Physician Group’s primary care and behavioral health divisions. Its substance use disorder services include outpatient and intensive outpatient services, ambulatory withdrawal management, medication-assisted treatment services, opioid overdose recovery and its support team for addiction recovery, or STAR, program.
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