Ethema Health Corporation (OTCQB: GRST), a Florida-based behavioral health provider, has announced a major behavioral health acquisition with the purchase of Edgewater Recovery Center (ERC), a Kentucky-based alcohol and substance use disorder (SUD) treatment provider. While financial details remain undisclosed, the scale of this move is substantial—boosting Ethema’s treatment capacity to nearly 600 beds and surpassing its previously stated goal of 500 beds by the end of 2025.
“To say that this opportunity is massive is an understatement,” said Shawn Leon, CEO of Ethema. “This will propel us to the 500-bed target much sooner than we anticipated. We know this is big growth, but we will be sure to stick to our principles in developing this opportunity.”
A Strategic Leap Forward in Behavioral Health
This behavioral health acquisition marks a pivotal moment in Ethema’s expansion strategy. The company’s flagship operation, the Addiction Recovery Institute of America (ARIA) in West Palm Beach, already offers a full continuum of care—ranging from medical detox and residential treatment to gender-specific intensive outpatient programs (IOP) and partial hospitalization programs (PHP).
By acquiring ERC, which operates five gender-specific treatment locations in Kentucky, Ethema adds significant residential and long-term 12-step-based programming to its portfolio. More importantly, ERC’s focus on Medicaid beneficiaries allows Ethema to further diversify its payer mix and expand access to underserved populations.
Growing a National Footprint Through Smart Investment
The behavioral health acquisition of ERC includes the purchase of three real estate holding companies tied to ERC’s treatment centers. Ethema has already assumed management of the organization and will continue operating it until the transaction closes or until January 31, 2025—whichever comes first.
As part of its long-term strategy, Ethema plans to pursue a sale-leaseback arrangement on the acquired properties, freeing up working capital while maintaining operational continuity. This approach mirrors its prior success at the West Palm Beach location, where real estate monetization provided the financial runway to invest in staffing, care quality, and future growth.
Sale-leaseback models are increasingly common in behavioral health acquisitions, as providers and investors alike prioritize operational flexibility and long-term sustainability over owning physical assets.
Medicaid Expansion and Clinical Synergy
One of the most strategic advantages of this behavioral health acquisition lies in its Medicaid alignment. ERC’s existing infrastructure and clinical model will integrate seamlessly with Ethema’s commitment to delivering high-quality, affordable, and accessible care.
With rising demand for substance use treatment across the country—especially in Medicaid populations—this acquisition positions Ethema as a leading provider capable of serving both private and public sector patients with excellence.
Additionally, the gender-specific treatment model shared by both ERC and ARIA ensures clinical synergy between the organizations, making the post-acquisition integration smoother and more effective.
Financial Growth Meets Patient-Centered Care
CEO Shawn Leon emphasized that the company will continue focusing on its core mission despite the rapid growth. “This behavioral health acquisition is about more than numbers—it’s about expanding our ability to help people,” said Leon. “We’re committed to scaling responsibly and staying true to our principles of individualized, evidence-based care.”
Ethema’s plan to up-list its shares to a higher-tier exchange reflects confidence in its future and a desire to attract broader investor interest. The company’s portfolio of services, diversified revenue streams, and disciplined real estate strategy create a compelling growth narrative for investors who understand the behavioral health market.
Looking Ahead
This latest behavioral health acquisition represents more than just geographic expansion—it reflects a deliberate, values-driven approach to growth. With nearly 600 beds under its management and a presence in two key states, Ethema is now poised to become a regional powerhouse in the addiction treatment space.
In the context of nationwide behavioral health shortages, mounting pressure on Medicaid systems, and the growing demand for integrated SUD care, Ethema’s strategic investment in ERC couldn’t come at a more opportune time.
“We look forward to bringing this company to the attention of many more investors with our plan to up-list,” Leon stated. “This acquisition is a foundational step in what we believe will be a powerful new chapter for Ethema.”
Conclusion
The acquisition of Edgewater Recovery Center is Ethema Health Corporation’s most significant behavioral health acquisition to date. It strengthens the company’s operational reach, enhances access for Medicaid patients, and reinforces its commitment to quality care. As Ethema continues to grow, it sets a strong example of how strategic acquisitions—grounded in mission and managed with care—can lead to both financial success and transformational patient outcomes.
