ARC Health, a rapidly growing outpatient behavioral health provider backed by private equity firm The Thurston Group, has announced the acquisition of Manhattan Psychology Group (MPG)—a highly respected New York-based mental health practice. This marks another major milestone in ARC Health’s ongoing strategy for outpatient behavioral health expansion across the United States.
Founded in 2011 by Dr. Josh Rosenthal and Dr. Niloo Dardashti, Manhattan Psychology Group has become a staple in New York’s mental health community. With over 200 providers, MPG offers a diverse array of services including applied behavioral analysis (ABA), neuropsychological testing, autism evaluations, school support services, and group programs for both children and parents. The group’s multidisciplinary approach, especially in supporting young individuals and neurodiverse populations, significantly enhances ARC’s overall service offerings.
“Our partnership with Josh and Niloo and the integration of MPG into the ARC Health family will not only expand the scope and depth of services offered but also reinforces a shared dedication to excellence in mental healthcare,” said Vince Morra, CEO of ARC Health.
This acquisition aligns with ARC Health’s mission to build the nation’s most comprehensive and accessible outpatient care network. It also reflects the company’s long-term commitment to outpatient behavioral health expansion, strengthening its ability to serve complex mental health needs in major urban markets like New York City.
Deepening Roots in Specialized Mental Health Care
MPG’s reputation for clinical excellence is grounded in its team of licensed psychologists, neuropsychologists, psychotherapists, board-certified behavior analysts, and special education experts. These professionals deliver care that is both evidence-based and personalized, focusing on early intervention and long-term support.
With the acquisition, ARC Health not only adds valuable expertise to its portfolio but also expands its reach in pediatric care and autism services—two areas seeing heightened demand amid national shortages in mental health professionals. This strategic integration represents a purposeful step in ARC’s larger goal of outpatient behavioral health expansion, providing families with more choices and higher-quality care.
A Growth-Focused Model Built on Leadership Continuity
Since its founding in 2021, ARC Health has completed over a dozen acquisitions—each one executed with a focus on clinical integrity and long-term sustainability. By keeping local leadership intact, ARC ensures continuity for patients and staff while bringing operational support to help each practice grow.
This leadership-retention model has become a cornerstone of ARC’s approach to outpatient behavioral health expansion, allowing the company to scale without sacrificing quality or disrupting care. As Dr. Rosenthal and Dr. Dardashti continue to lead MPG, the practice will maintain its clinical identity while gaining access to broader resources and infrastructure.
M&A advisory firm Mertz Taggart facilitated the transaction, adding to its track record of advising many of the industry’s most notable behavioral health deals.
Strategic Acquisitions Despite a Slowdown in M&A
While overall behavioral health M&A activity has cooled in 2023—with 101 transactions recorded in the first three quarters compared to 133 during the same period in 2022—ARC Health remains one of the most active players in the space. The acquisition of MPG follows closely on the heels of recent deals with GROW Therapy in Atlanta and LynLake Centers for Well Being in Minneapolis.
ARC’s continued momentum in a slowing market speaks to its refined acquisition strategy and focused vision for outpatient behavioral health expansion. While other firms may hesitate, ARC is identifying mission-aligned organizations with strong local roots and a passion for innovation.
Advancing a National Vision for Mental Health
The addition of Manhattan Psychology Group doesn’t just add another pin to ARC’s map—it enriches its capabilities and underscores its dedication to delivering care that’s local, expert-led, and accessible. MPG’s services for children, adolescents, and parents strengthen ARC’s network and help bridge critical gaps in youth mental health support.
With every acquisition, ARC moves closer to a more unified, effective, and patient-centered system of outpatient mental health care. The partnership with MPG demonstrates the power of combining clinical excellence with strategic scale—a formula that is driving meaningful outpatient behavioral health expansion across the country.
Looking ahead, ARC Health plans to continue its growth through thoughtful, quality-first acquisitions, aiming to become the leading national network for outpatient mental health services. As demand for behavioral health care continues to rise, ARC is positioning itself to meet that need with innovative care models, top-tier talent, and a firm belief in the value of accessible, specialized support.
Conclusion
The acquisition of Manhattan Psychology Group is a significant chapter in ARC Health’s growth story and a key driver of its nationwide outpatient behavioral health expansion. By joining forces with practices that share its clinical philosophy and commitment to patient care, ARC is helping to reshape the behavioral health landscape for the better—one community at a time.
Whether in New York, Atlanta, or Minneapolis, ARC Health’s growing network reflects a future where mental health services are more connected, more responsive, and more available to those who need them most.
