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Centerstone and The H Group to Pursue Affiliation

Providers sign letter of intent to join forces, forming four-state organization dedicated to advancing the delivery of behavioral healthcare nationwide

Nashville, Tenn. and West Frankfort, Ill.—Centerstone and The H Group, BBT, two leading behavioral healthcare organizations, have executed a letter of intent to pursue an affiliation. By joining forces, the non-profit organizations will combine their operations and expertise to advance behavioral healthcare across the nation.

“Centerstone and The H Group have similar visions for strengthening the delivery of behavioral healthcare,” said David C. Guth, Jr., CEO of Centerstone. “We have complementary strengths and a shared dedication to clinical excellence. The H Group brings exceptional expertise in areas such as developmental disabilities and an innovative approach to business development. Providing care for individuals with intellectual and developmental disabilities represents a major expansion of the Centerstone mission and service offerings.”

With the letter of intent signed by their respective Boards of Directors, Centerstone and The H Group will conduct a period of due diligence and negotiate the terms of a potential affiliation agreement. This process is expected to take 60-90 days. The agreement will then be subject to normal legal and regulatory reviews.

As part of the proposed agreement, The H Group would become part of Centerstone, forming two new organizations, Centerstone of Illinois and Centerstone of Kentucky. John G. Markley, CEO of The H Group, would become CEO of both organizations.

“Our team is excited at the prospect of becoming part of Centerstone,” said Markley. “The H Group and Centerstone are aligned on the opportunities and challenges that face our industry today. We each bring unique assets to this affiliation that will allow us to enhance behavioral healthcare in our communities in ways that we could not separately. We look forward to exploring all of the potential this affiliation holds in the weeks to come.”

Centerstone is one of the largest non-profit providers of community-based behavioral healthcare in the nation. In operation for nearly 60 years, it is comprised of subsidiary organizations including:

  • Centerstone of Tennessee and Centerstone of Indiana, which provide an array of mental health and substance abuse treatment services to more than 75,000 people annually;
  • Centerstone Research Institute, a unique organization specializing in improving healthcare through research and information technology;
  • Centerstone Military Services, which provides specialized services and support to military Americans and their loved ones;
  • Advantage Behavioral Health, which creates healthcare management solutions that improve access to services and advance patient care and outcomes; and
  • Centerstone Foundation, the organization’s philanthropic arm.

Centerstone also operates Centerstone Health Partners, which has formed a joint venture with Unity Physician Partners to establish integrated care clinics that will serve the physical and behavioral healthcare needs of medically underserved patients.

The H Group is the largest behavioral healthcare provider in Southern Illinois, with a 50-year history of serving children, youth, adults and families through mental health counseling, substance abuse treatment, life skills enrichment programs and services for adults with developmental disabilities. This past year, nearly 9,000 clients received services from The H Group’s Illinois service centers in Franklin, Jackson, Williamson counties and in Western Kentucky. With more than 600 employees, The H Group is also one of the region’s top employers.

“We see this affiliation as a great opportunity to combine our resources and knowledge to better meet the needs of people of all ages and expand access to innovative services and programs,” added Guth. “This is an exciting development for our employees, clients and communities.”

If the affiliation is finalized, the combined Centerstone/H Group organization will have 146 locations in Illinois, Indiana, Kentucky and Tennessee and approximately $160 million in annual revenues. It will employ more than 2,600 people and serve an estimated 84,000 individuals of all ages.

About Centerstone

Centerstone, a not-for-profit organization, is one of the nation’s largest providers of community-based behavioral healthcare. It provides a full range of mental health, addiction and related educational services to more than 75,000 individuals of all ages each year. The organization has nearly 130 facilities and 220 partnership locations throughout Indiana and Tennessee. It also operates the Centerstone Foundation, Centerstone Research Institute, Advantage Behavioral Health, Centerstone Military Services and Centerstone Health Partners.

About The H Group

The H Group, BBT, provides mental health services, substance abuse treatment, life skills enrichment programs and services for developmentally disabled adults in Southern Illinois and Western Kentucky. As the region’s largest provider of behavioral healthcare services, The H Group served nearly 9,000 children, youth, adults and families this past year. For more information about The H Group, please visit www.buildingbettertomorrows.org.