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New York Investor Group Buys Kansas Addiction Center PDF   E-mail
Addiction Treatment Industry Newswire
10/16/2018 -ATIN- A New York investor group has acquired Sunflower Wellness Retreat, a 23-bed addiction treatment center located about an hour southwest of Kansas City.

"We looked at a lot of different addiction treatment center models once we decided to focus on the addiction treatment business," says Lawrence Weiss, principal at Sunflower, one of three investors that this summer got together and purchased the center.

The trio decided, after closely examining a facility near San Francisco, against getting into the high-end private pay side of the treatment business, specifically citing the risk of soaring  marketing expense associated with client acquisition as well as intense competition due to the proliferation of "six-bed model" centers throughout California. There are now over 2,000 such centers in the state.

What attracted Weiss and partners to Sunflower was its deep referral relationships in the local community surrounding the center. "Sunflower is not a destination treatment experience," says Weiss. "We get all our clients from a 90 mile radius."

From a clinical effectiveness standpoint, Weiss points out that focusing on local clientele makes for ease of participation by families in the treatment of their loved ones. Strong family participation in the treatment experience correlates highly with outcomes success, research has shown.

Weiss and partners are far from the only investors who have sought to chip away at the dominance of national treatment "hubs" in Florida, Arizona and California, states that are overflowing with "destination" addiction centers.

Philadelphia real estate developer Brian O'Neill founded Recovery Centers of America with a local catchment model of client acquisition in mind. He has bought centers and upgraded them and done greenfield new builds as well as property conversions, mostly in the middle Atlantic states and the Northeast.

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