Investment firm Thrive Healthcare has announced the acquisition of Harmony Recovery Group, a behavioral treatment provider with 10 facilities across Florida, North Carolina, Tennessee, New Jersey, and Massachusetts. The financial terms of the deal were not disclosed, but the transaction marks a significant development in the behavioral health investment landscape, reflecting ongoing mental health investment trends as consolidation in the sector continues to accelerate.
Harmony Recovery Group’s Footprint and Services
Founded in 2015 and headquartered in Charlotte, North Carolina, Harmony Recovery Group has grown into a respected provider of both addiction and mental health treatment programs. Its services reflect the comprehensive nature of modern behavioral health care, including:
- Detoxification programs to help patients safely begin recovery.
- Partial hospitalization (PHP) and intensive outpatient programs (IOP), offering structured yet flexible treatment.
- Dual-diagnosis services designed to address co-occurring mental health and substance use disorders.
- Wellness and holistic health programs supporting long-term stability and relapse prevention.
Over the past seven years, Harmony Recovery Group has established a strong reputation for providing individualized care and evidence-based practices across multiple states, serving thousands of clients in need of recovery support.
Dr. Deja Gilbert, CEO of Harmony Recovery Group, emphasized the optimism surrounding the new partnership.
“The acquisition of Harmony Recovery Group by Thrive Healthcare marks the beginning of an exciting new chapter for our team,” Gilbert said. “We look forward to seeing the company continue to grow and are confident Harmony will realize its full potential, servicing all lines of behavioral healthcare needs, under the stewardship of Thrive Healthcare’s esteemed board of directors led by Mr. Steve Fishman.”
Thrive Healthcare’s Strategic Approach
For Thrive Healthcare, the acquisition underscores its focus on expanding within the behavioral health sector. The investment firm provides capital and operational guidance to its partners, with a portfolio emphasis on:
- Psychiatric hospitals
- Residential substance abuse treatment centers
- Outpatient programs
- Specialty behavioral health providers
By acquiring Harmony Recovery Group, Thrive not only expands its treatment network but also strengthens its ability to meet rising demand for comprehensive behavioral health services. With the U.S. experiencing heightened awareness of mental health and addiction treatment needs, firms like Thrive see an opportunity to align mission-driven care with sustainable investment strategies. This aligns with the broader landscape of mental health investment trends, where both investors and care providers are seeking to balance access, quality, and growth.
A Rebound in Behavioral Health M&A
The Harmony Recovery Group acquisition also comes at a time when behavioral health mergers and acquisitions are gaining momentum after a quieter first half of the year.
According to M&A advisory firm Mertz Taggart, there were 48 behavioral health transactions in Q3, representing a 50% increase over Q2. Notably:
- Addiction treatment deals rose from 9 in Q2 to 14 in Q3.
- Mental health transactions nearly doubled, jumping from 18 in Q2 to 36 in Q3.
Kevin Taggart, managing partner at Mertz Taggart, noted in the report that deal pipelines remain strong.
“We are expecting a strong finish to 2022 and good start to 2023 based on our current deal pipeline and client activity,” Taggart said. “We are still very bullish on the lower middle market for behavioral health, with outpatient mental health leading the way.”
These statistics reflect broader mental health investment trends, particularly the growing interest in outpatient services that provide scalability and flexibility.
Broader Industry Context
The Harmony Recovery Group deal is part of a larger wave of consolidation in behavioral health, as investors and operators seek to build scale and offer integrated care. Other recent acquisitions in the space include:
- Lee Equity Partners’ acquisition of Bradford Health, a substance use disorder provider.
- BayMark Health Services’ purchase of Fritz Clinic, which specializes in opioid use disorder treatment.
Taken together, these deals reflect the ongoing strength of mental health investment trends, which are being driven by a combination of increasing demand, favorable reimbursement policies, and investor recognition of the long-term need for behavioral health services.
Looking Ahead: Growth Opportunities for Harmony Recovery Group
Under Thrive Healthcare’s ownership, Harmony Recovery Group is well-positioned to expand its geographic reach and broaden its clinical offerings. The alignment of Thrive’s capital resources with Harmony’s operational expertise could support:
- New facility openings in underserved regions.
- Enhanced dual-diagnosis treatment models that integrate mental health and addiction care.
- Technology-driven solutions, such as telehealth, to extend access to outpatient care.
- Wellness-focused initiatives that complement traditional treatment approaches.
These areas of expansion reflect key mental health investment trends that prioritize innovation, access, and comprehensive care. With continued growth in demand for both mental health and addiction treatment, Harmony Recovery Group’s integration into Thrive Healthcare’s portfolio highlights a strategic move to capture future opportunities.
Conclusion
The acquisition of Harmony Recovery Group by Thrive Healthcare represents more than just a transaction — it highlights the continued strength of behavioral health as an investment category, even amid broader economic uncertainty. With M&A activity on the upswing and outpatient mental health services leading the charge, the partnership between Thrive and Harmony illustrates how strategic investment and clinical expertise can align to expand access and improve outcomes in addiction and mental health treatment.
Ultimately, this acquisition underscores the importance of keeping pace with evolving mental health investment trends, which continue to shape the future of behavioral health care in the United States.
