A deal to buy out and absorb the treatment provider Addiction Recovery Care into a larger healthcare company is no longer moving forward.
Ethema Health Corporation, a company based in Florida, signed a letter of intent to buy ARC’s Kentucky facilities last October. Addiction Recovery Care is the state’s largest addiction treatment provider, with facilities mostly in eastern Kentucky.
A press release from Ethema says both companies have mutually decided not to move forward with the deal.
The deal would have expanded Ethema’s presence in the Commonwealth. The company also owns ARIA Kentucky, which operates rehab centers across the state.
The failed buyout comes as the FBI is investigating Addiction Recovery Care for potential healthcare fraud.
A-R-C also laid off hundreds of employees and closed nine facilities last 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.
