Community Medical Services (CMS), a Scottsdale, Arizona-based provider specializing in opioid treatment and mental health services, is experiencing significant growth following a private equity investment. The company has appointed several high-level executives from leading organizations to its management team and introduced internal telehealth services to enhance the care it offers to its patients. These developments come as CMS enters the next phase of its post-investment growth, with plans to expand by opening up to 30 new locations by the end of 2024.
Expanding Beyond Opioid Treatment
Traditionally focused on its opioid treatment program (OTP) business, CMS is a recognized leader in the field of medication-assisted treatment (MAT), which uses opioid agonists such as methadone to help patients manage opioid addiction. OTPs are tightly regulated by state and federal governments, and CMS has been a key player in ensuring that patients receive the proper medications for recovery. However, recognizing the growing prevalence of co-occurring mental health issues that complicate the recovery process, CMS has taken bold steps to integrate telehealth services into its treatment model. This expansion is designed to address the complex needs of patients who not only struggle with opioid addiction but also experience mental health conditions like anxiety, depression, and PTSD.
Telehealth Services: A Key Innovation for CMS
The company’s decision to launch its own internal telehealth services is a significant milestone in its investment in technology. In the past, CMS has provided telehealth services for substance use disorders (SUD) in rural clinics, but the new initiative marks an important evolution of their approach, particularly in offering remote mental health care. With telehealth services, CMS can increase access to psychiatric care for its patients, particularly in underserved areas where mental health professionals are in short supply. This move comes as part of the company’s broader strategy to ensure that patients receive holistic care that addresses both addiction and mental health concerns simultaneously.
Rolling Out Telehealth Services Across Clinics
The company’s telehealth services initiative initially began rolling out in rural clinics in Montana and Arizona, where access to mental health services can be particularly challenging. By launching tele-mental health services at five locations in these states, CMS has set the foundation for scaling the program to other locations as needed. Developing telehealth services required significant effort, particularly around creating policies and procedures that ensure the appropriate levels of care and safeguards for patients. Providing virtual care, especially when prescribing psychotropic medications, introduces new risks that CMS has worked hard to address through careful planning and policy development.
The Role of Technology in CMS’s Growth
An essential part of CMS’s strategy for improving patient engagement is its partnership with Bright Therapeutics to create an app called Recovery Path. This app is designed to help patients stay connected with their counselors and track their progress in treatment. Recovery Path allows patients to participate in a contingency management program, which offers incentives for reaching treatment milestones. The app is part of CMS’s broader digital health strategy, which includes the development of business process systems and patient management tools. CMS has partnered with Bright Therapeutics to develop a white-label app for engagement and care outcomes tracking. The app was piloted in 2022 and is now being rolled out across the company, with the aim of being one of the best tools for substance use disorder treatment on the market.
“We piloted this as we built it very much like a lean startup methodology—tweaking this and that and then checking the outcome,” Stavros explained. The app has already shown promising results in improving patient outcomes and helping to keep patients more engaged in their treatment programs.
Aggressive Growth and New Leadership to Drive Expansion
Community Medical Services has been on an impressive growth trajectory in recent years. In 2022, the company opened 10 new service sites, and by the end of 2023, CMS is expected to open 12 more, with plans for at least 18 additional locations in 2024. The company is already operating 70 locations across 12 states, a number that will continue to grow thanks to its strategic expansion efforts.
At the heart of this expansion is a new, highly skilled leadership team that is poised to help CMS meet its ambitious growth targets. In 2023, the company brought on two new executives: Daniel Gutschenritter, former Chief Financial Officer of BayMark Health Services, and David Thurlow, who spent several years at Walgreens. These appointments come at a time when the company is focused on expanding its services and ensuring that its operations run smoothly as it continues to scale. Other key leadership additions in 2022 include Michael Hailye as Chief Technology Officer, Stacie Baird as Chief People Officer, and the promotion of Dr. Robert Sherrick to Chief Science Officer.
CEO Nick Stavros, who has been instrumental in driving CMS’s expansion, commented on the company’s goals: “We have the most ambitious growth goals we’ve ever had. When everyone is slowing down because of interest rates, we probably have more audacious growth goals than are typical.” Stavros recognizes that in order to achieve such aggressive targets, the company needs to have an executive team capable of supporting its rapid growth while maintaining high standards of care and patient safety.
Telehealth Services and Technology at the Forefront of CMS’s Innovation
One of the most exciting aspects of CMS’s recent growth is its commitment to investing in technology, particularly in telehealth services and digital tools designed to enhance patient engagement and treatment outcomes. Telehealth services have already proven to be a vital service for CMS’s patient population, especially given the high prevalence of co-occurring mental health issues. Around 60% of CMS’s 20,000 patients suffer from some form of mental illness, and only 40% receive care outside the organization for those conditions. By expanding telepsychiatry services, CMS aims to provide more comprehensive care to its patients, increasing access to mental health professionals and improving overall outcomes.
CMS is not only developing its own software and systems but is also participating in broader technology initiatives aimed at refining and improving patient care. The company’s goal is to continue driving innovation in the treatment of opioid use disorder and co-occurring mental health issues, with the ultimate goal of providing better, more accessible care for those in need. With its strong leadership team, ambitious growth plans, and cutting-edge technological solutions, CMS is well-positioned to remain a leader in the opioid treatment and mental health services space for years to come.
