Ken Newman, a healthcare investor who founded Horizon Health Corp., and W. Earl Reed III, a former CEO of LifeCare Holdings, announced a $100 million private-equity investment in a newly created behavioral health hospital company Springstone.
New behavioral health company lands $100 million investment
The private-equity firm Welsh, Carson, Anderson & Stowe—which includes among its partners Thomas Scully, a former CMS administrator and one-time Federation of American Hospitals president and CEO—has committed $100 million to the Louisville, Ky.-based Springstone.
Jill Force, chief administrative officer for Springstone, said the company is looking to build behavioral health and psychiatric hospitals but will consider acquisitions. “Our emphasis is on organic growth from the ground up, however, we will definitely be looking at other development opportunities as they become available to us,” she said.
Force said the company is considering markets east of the Mississippi.
Horizon Health, a psychiatric hospital chain, was sold for $426 million to Psychiatric Solutions in June 2007. Newman, also an investor in Springstone, has been named the newly formed company's chairman.
Reed resigned in August 2007 as chairman of LifeCare, an investor-owned hospital company based in Plano, Texas, and rejoined the healthcare consulting firm the Allegro Group, which he founded Force. Reed has been named president and CEO of Springstone.
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