In a significant move to solidify its position in the rapidly growing behavioral health space and drive addiction treatment growth, Fulcrum Equity Partners has acquired Defining Wellness Centers, a well-established provider of substance use disorder (SUD) treatment located in Jackson, Mississippi. This acquisition follows a multi-year search by Fulcrum for a valuable asset within the addiction treatment sector, marking a key milestone in the firm’s ongoing strategy to invest in healthcare services.
Fulcrum Equity Partners, based in Atlanta, is a growth equity firm that specializes in healthcare services and B2B tech companies, particularly those seeking equity investments in the range of $5 million to $30 million. The firm evaluates around 1,200 deals every year, but typically closes only a few, emphasizing a highly selective approach to its investments. Defining Wellness Centers, with its 26-acre campus and comprehensive service offerings, was identified as an ideal match for Fulcrum’s criteria. The treatment center currently serves around 95 to 100 patients each month, with nearly 95% of its services being covered by in-network insurance. This focus on in-network reimbursement was one of the key factors that made Defining Wellness an attractive acquisition target for Fulcrum, as it aligned with their priority of sustainable, scalable business models. This acquisition represents a significant step forward in the continued addiction treatment growth in the United States.
The Vision for Growth Under New Leadership
Following the acquisition, Fulcrum has appointed Drew Rothermel as the new CEO of Defining Wellness Centers. Rothermel, who has an extensive background in the addiction treatment space, will spearhead the next phase of addiction treatment growth for the center. Previously, Rothermel served as the Chief Operating Officer at Caron Treatment Centers, and as the CEO and President of Origins Behavioral HealthCare. His wealth of experience in managing and growing treatment facilities, as well as his background in healthcare consulting for private equity firms, positions him well to lead Defining Wellness through its expansion journey.
Rothermel’s immediate focus will be to refine and enhance the existing programs at Defining Wellness Centers. He emphasized the importance of not only meeting the community’s urgent need for treatment but also creating a visible presence that advocates for both treatment access and the expansion of care options. “The community here is desperate for a partner who’s going to meet the treatment need and also be a visible proponent for treatment and access to care,” Rothermel explained. “We know how to do that.” With this vision in mind, he plans to grow Defining Wellness by both expanding its existing footprint and replicating its successful treatment model in other geographies. This expansion will be a vital driver of addiction treatment growth across multiple regions.
Expansion Strategy: A Focus on De Novo and M&A Opportunities
Under Rothermel’s leadership, Defining Wellness is set to pursue a combination of organic growth and strategic mergers and acquisitions (M&A). Fulcrum has historically employed a de novo strategy for expanding its portfolio, focusing on finding properties that can be repurposed for addiction and behavioral health treatment centers. This strategy has proven successful with past investments, such as Addiction Campuses, where the firm transformed properties like old resorts and corporate retreats into high-end residential treatment centers.
Fulcrum’s investment in Defining Wellness will follow a similar growth model. As Tom Greer, partner at Fulcrum, explained, “We’ll find other properties that look similar, or find something that’s close and make it similar. That’s what we did with our other investment, Addiction Campuses.” This approach will involve identifying properties with the potential to be converted into specialized addiction treatment centers, ensuring that each new location meets the demand for quality care while maintaining a high standard of treatment.
Rothermel and Fulcrum will also consider expanding through M&A, seeking out additional opportunities to integrate existing treatment centers that complement Defining Wellness’s current operations. This combination of de novo expansion and strategic acquisitions will allow Defining Wellness to scale efficiently and meet the growing demand for addiction treatment across various regions. This strategy is expected to significantly contribute to addiction treatment growth within the company and the sector as a whole.
Comprehensive Care and Plans for New Services
Defining Wellness currently provides a full continuum of care for individuals struggling with substance use disorders, including medical detox, inpatient rehabilitation, partial hospitalization programs (PHP), and outpatient services. These offerings form the foundation of the center’s treatment model, providing patients with a structured path to recovery and long-term sobriety.
However, the acquisition also presents an opportunity for Defining Wellness to broaden its scope and introduce new services that address other behavioral health challenges. One area that Fulcrum has identified as a key growth opportunity is the treatment of eating disorders, which has seen a dramatic increase in demand in recent years. The need for specialized eating disorder treatment centers currently far exceeds the available supply, making it a promising area for expansion.
“We are looking for the right asset in eating disorders,” Greer said. “There’s a huge demand for those services, and that demand outstrips the supply right now.” This growing demand for eating disorder services, combined with Defining Wellness’s expertise in providing comprehensive behavioral health care, positions the center to potentially offer these services in certain locations as part of a broader, more integrated treatment model.
This addition could make Defining Wellness a more comprehensive behavioral health provider, offering a diverse range of services to meet the needs of individuals struggling with addiction, eating disorders, and other co-occurring conditions. The firm is also considering the possibility of adding mental health services, recognizing the increasing demand for integrated care that addresses both substance use and mental health challenges simultaneously. Such services would further drive addiction treatment growth and enhance the firm’s portfolio.
A Bright Future for Defining Wellness Centers
With the backing of Fulcrum Equity Partners and the leadership of Drew Rothermel, Defining Wellness Centers is well-positioned to thrive in the rapidly expanding addiction treatment market. The center’s robust service offerings, combined with its new growth strategy, will allow it to scale operations and meet the growing demand for high-quality substance use disorder treatment across the country.
The acquisition also reflects a broader trend within the healthcare industry, where private equity firms like Fulcrum are increasingly investing in behavioral health services to address the rising demand for addiction treatment. As addiction rates continue to soar nationwide, the need for accessible, effective treatment options has never been more urgent. By expanding Defining Wellness’s reach and introducing additional services, Fulcrum and Rothermel aim to make a significant impact on the lives of individuals struggling with substance use disorders.
Ultimately, this acquisition represents a long-term commitment to improving access to care and enhancing the quality of treatment available to those who need it most. As Fulcrum’s investment strategy continues to focus on high-growth areas within healthcare, the future for Defining Wellness Centers—and the patients it serves—looks incredibly promising. With its potential to contribute to addiction treatment growth, this acquisition has positioned Defining Wellness for long-term success in the addiction recovery landscape.
