A Vision for Behavioral Health
This is a story about how a multi-million dollar hospital corporation was built from the idea of two local visionaries.
In 2008, we met with a guy who is in the mental health/substance abuse field. He had a vision to build his own behavioral health hospital.All Creations
This is a story about a how a multi-million dollar hospital corporation was built from the idea of two local visionaries.
It was a pretty complete vision. A friend of ours walked in the door in the fall of 2007 and wanted arc to assist him with the development and construction of a 24-bed behavioral health hospital in Newburgh, Indiana. He had the vision and the land but not the ability to execute.
For those of you who remember, 2008 wasn’t the best time to start new ventures. As the economy was crashing and banks were not lending money, arc continued to thrive.
The first setback for our project came when one of the operating partners bailed on the project – the economy had left him with cold feet. A smarter company would have just walked away; but, we saw an opportunity.
We offered to buy the partner out and fully committed ourselves to the project. At this point, all we had was 11 acres of land and a crazy idea. Now all we needed was the money to get it done!
Did we mention the economy was in the toilet and money was not available?
Of course, the banks thought we were crazy.
After some begging and pleading – and signing away all we had – arc convinced the bank to make the loan.
8 months later, we had the hospital built.
The tricky thing with hospital reimbursements is that you don’t get them the day you open. You need certifications and you must be operating your business for months before you receive any money.
At that time, we had borrowed just enough money to sustain the business for three months…and it took almost three months exactly before our first reimbursement check came in.
By December of 2009, the hospital was 100% occupied and we were actually making money.
In February of 2010, we were approached by a healthcare executive who was impressed with our business model. He liked what we did with the hospital and wanted to buy the operating and real estate company we had created.
His plan was to use our business model to create a new behavioral health company that would replicate our business model across the country. We agreed to sell, on one condition: we would be the company they would use to develop, design and construct their new locations.
The rest is history!
Since 2010, we’ve now developed, designed, and constructed over 130 million dollars in behavioral health hospitals all across the country.
Sometimes the riskiest project can also be the most fulfilling.