Regional treatment provider Addiction Recovery Care is moving towards being sold, according to a press release.
Ethema Health Corporation, a national company based in Florida, signed a letter of intent to buy the provider. ARC operates 18 facilities, mostly in eastern Kentucky.
Ethema currently owns ARIA Kentucky, which operates rehab centers across the state. ARC’s facilities would be operated under the ARIA umbrella.
The move comes amid turbulent times for ARC. The FBI announced last year it was investigating the company for potential healthcare fraud.
ARC has also closed nine facilities and laid off hundreds of employees over the past year. The treatment provider says those cutbacks are because of reimbursement cuts to Medicaid by insurance companies, and aren’t related to the federal investigation.
The company said in a release it believes a sale is the most responsible decision for the company, its clients and its workforce.
