Recovery Centers of America (RCA), based in King of Prussia, Pennsylvania, has acquired Adolescent & Young Adult Advocates, a Bryn Mawr, Pennsylvania-based provider known for its outpatient programs focused on early intervention addiction treatment. Announced recently with financial terms undisclosed, this acquisition enhances RCA’s capacity to deliver early intervention addiction treatment for adolescents and young adults in the Philadelphia region, addressing substance use disorder (SUD) and mental health challenges at their earliest stages. By integrating Advocates’ expertise, RCA is poised to make a profound impact on young people through targeted early intervention addiction treatment strategies.
Expanding Early Intervention Addiction Treatment for Youth
Since its founding in 2005 by Executive Director Patricia McAndrews, Adolescent & Young Adult Advocates has provided comprehensive outpatient early intervention addiction treatment for individuals aged 14 to 26. The organization specializes in addressing substance use disorders, anxiety, depression, and other mental health conditions through tailored programs designed to meet the unique needs of young people. Following the acquisition, it will operate as Adolescent & Young Adult Advocates, Recovery Centers of America, continuing to offer individual, group, and family therapy sessions through general and intensive outpatient programs, all rooted in early intervention addiction treatment.
Troy Brindle, CEO of RCA’s outpatient services, highlighted the critical role of early intervention addiction treatment: “We are highly focused on using outpatient programming to help adolescents, as we recognize that early substance use correlates with addiction issues later in life, and that the most significant increases in destructive behavior routinely occur among older teens and young adults.” By merging with Advocates, RCA strengthens its ability to deliver early intervention addiction treatment, preventing the escalation of addiction and mental health issues among youth.
National statistics underscore the urgency of this focus. A federal survey reveals that 14.1% of adolescents aged 12 to 17 used illicit substances in the past year, while 38% of young adults aged 18 to 25—the highest rate among any age group—reported similar use. These figures emphasize the need for accessible early intervention addiction treatment, a cornerstone of RCA’s expanded mission through this acquisition.
RCA’s Commitment to Comprehensive Care
Founded in 2014, Recovery Centers of America has established itself as a leader in addiction and mental health treatment. The company operates 10 inpatient addiction treatment facilities across Illinois, Indiana, Maryland, Massachusetts, New Jersey, and Pennsylvania, complemented by a growing network of mental health services offered within its centers and standalone outpatient offices. Earlier this year, RCA expanded its reach with a 130-bed treatment center in a former Wyndham hotel in Greenville, South Carolina, further demonstrating its commitment to scaling access to care.
To bolster its mental health division, RCA recently hired a former Aetna healthcare executive to lead growth initiatives, ensuring that early intervention addiction treatment remains a priority alongside broader mental health services. The acquisition of Adolescent & Young Adult Advocates aligns seamlessly with this strategy, enabling RCA to offer a continuum of care that spans inpatient and outpatient settings, with a particular emphasis on early intervention addiction treatment for younger populations.
Financial Backing and Strategic Partnerships
RCA’s growth has been fueled by substantial private funding and innovative partnerships. In 2015, the company secured $231.5 million from Deerfield Management Co., a New York City-based healthcare investment firm, followed by an additional $100 million in 2016. These investments enabled RCA to build its network of facilities and expand its outpatient offerings, including early intervention addiction treatment programs. In 2021, RCA secured a $325 million mortgage loan from Sabra Health Care REIT (Nasdaq: SBRA), backed by eight inpatient facilities, further solidifying its financial foundation.
The partnership with Sabra has been pivotal, with RCA accounting for 5.4% of Sabra’s annualized cash net operating income (NOI), approximately $24 million. Sabra’s broader behavioral health investments, totaling $784 million and representing 13% of its cash NOI, highlight the growing role of real estate investment trusts (REITs) in supporting facility-based providers. By offloading real estate costs to REITs like Sabra, RCA can allocate more resources to operational needs, such as expanding early intervention addiction treatment programs and hiring skilled clinicians. This model is increasingly attractive to private equity-backed behavioral health organizations seeking sustainable growth.
Addressing a Growing Need Through Early Intervention
The acquisition of Adolescent & Young Adult Advocates comes at a critical time, as demand for mental health and addiction treatment surges. The opioid epidemic, rising rates of anxiety and depression among youth, and the lingering impacts of the COVID-19 pandemic have heightened the need for effective early intervention addiction treatment. By focusing on outpatient care for adolescents and young adults, RCA addresses a critical gap in the healthcare system, offering solutions that can prevent the progression of substance use and mental health disorders.
This acquisition reflects broader trends in the behavioral health industry, where providers are increasingly integrating mental health and addiction treatment to deliver holistic care. RCA’s growing network, strategic partnerships, and focus on early intervention addiction treatment position it as a leader in this evolving landscape.
A Vision for the Future
The acquisition of Adolescent & Young Adult Advocates marks a significant milestone for Recovery Centers of America as it expands its impact in the behavioral health sector. By combining RCA’s resources with Advocates’ expertise in outpatient early intervention addiction treatment, the organization is well-equipped to support adolescents and young adults in building healthier futures. This move not only strengthens RCA’s presence in the Philadelphia area but also sets a precedent for how behavioral health providers can leverage acquisitions and partnerships to meet growing demand.
As RCA continues to innovate and grow, its emphasis on early intervention addiction treatment, comprehensive care, and creative financing models will likely inspire other providers in the industry. For families seeking support, Adolescent & Young Adult Advocates, Recovery Centers of America, offers a beacon of hope, delivering evidence-based, compassionate care to young people navigating the challenges of addiction and mental health.
