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- Recovery Centers of America
Recovery Centers of America Funding, Investors & Competitors
Recovery Centers of America has raised $332M across 2 funding rounds, most recently a $100M undisclosed-stage round in November 2016.
Last Recovery Centers of America funding round
$100M
Undisclosed stage · Nov 2016
Cumulative funding Recovery Centers of America raised
$332M
across 2 funding rounds
Key investors in Recovery Centers of America
Deerfield
About Recovery Centers of America
Recovery Centers of America is a network of residential addiction treatment facilities serving patients with substance use and behavioral health disorders across the Mid-Atlantic region. Headquartered in King of Prussia, Pennsylvania, the company maintains centers in Pennsylvania, Maryland, New Jersey, and Massachusetts that integrate family support and community networks into recovery programs based on scientific research. These neighborhood-oriented campuses feature environments resembling college settings with amenities to combat treatment stigma. Founded in 2013, Recovery Centers of America delivers inpatient detoxification, residential care, and outpatient services while expanding its Northeast presence through new facility openings.
Founded
2014
HQ
Website
Status
Privately held
Customer focus
B2C
Revenue model
Services
Recovery Centers of America Funding History
Recovery Centers of America has raised a total of $332M across 2 funding rounds.
Recovery Centers of America's first fundraising round was a $232M undisclosed-stage round in December 2015. The most recent completed round was a $100M undisclosed-stage round in November 2016.
Recovery Centers of America funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Nov 2016 | Undisclosed stage | Deerfield (lead) | $100M | Recovery Centers of America (RCA) is an addiction and behavioral healthcare treatment provider offering evidence-based care for substance use disorders and co-occurring mental health conditions, operating facilities in states including Pennsylvania, New Jersey, Maryland, Delaware, and Massachusetts. Founded by Brian O'Neill, a former real estate developer, RCA launched with ambitions to rapidly expand amid the opioid crisis, aiming to treat 1 million people over a decade through a network of integrated treatment campuses providing inpatient and outpatient services. In May 2015, Deerfield Management committed $231.5 million in a debt-and-equity structure to fund the development or purchase of at least eight treatment campuses in the Northeast U.S., targeting 1,200 inpatient beds by end-2017, with financing released on a milestone basis. By November 2016, RCA received an additional $100 million from Deerfield, building on the prior commitment which had grown to $331.5 million by 2017 in some reports. Deerfield served as both financier and strategic advisor, supporting RCA's growth as an early-stage company focused on scaling operations. RCA positioned itself as the fastest-growing addiction treatment provider, leveraging private equity to acquire and launch facilities like Recovery Centers of America at Bracebridge Hall in King of Prussia, Pennsylvania. The expansion drew scrutiny, with Massachusetts regulators noting troubling lapses in policies at two centers and investigating patient deaths in 2017. Competitors like American Addictions Centers (also backed by Deerfield) and Summit Behavioral Healthcare (with Flexpoint Ford) were similarly pursuing aggressive growth in the for-profit addiction treatment sector. |
| Dec 2015 | Undisclosed stage | Deerfield (lead) | $232M | Recovery Centers of America, a King of Prussia-based addiction treatment company, secured $231.5 million in funding from Deerfield Management on December 16, 2015, to develop or purchase eight recovery campuses in the Northeast U.S., including locations in New Jersey, Maryland, Pennsylvania, and Massachusetts, aiming for 1,200 beds by 2017. The investment supports expanding a network of facilities designed as 'Recovery Campuses' with a college-like atmosphere and Starbucks-like appeal, keeping patients near family and providing comprehensive care for substance abuse and behavioral disorders. CEO Brian O'Neill emphasized making treatment as accessible as for other chronic diseases like diabetes or asthma, addressing barriers such as community opposition to rehab centers. This followed the company's launch a year earlier with $200 million, after opening its first campus in May 2015. A subsequent $100 million Unattributed VC-II round occurred on November 15, 2016, also involving Deerfield, bringing total funding to $331.5 million over two rounds; the company was later acquired on March 9, 2023. |
Who has invested in Recovery Centers of America?
1 investor has backed Recovery Centers of America across its funding rounds, including Deerfield.
Lead investors include Deerfield.
Recovery Centers of America Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
This data is available for Pro users. Sign up to see all 1 Recovery Centers of America investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialRecovery Centers of America Competitors
Recovery Centers of America competitors include listed companies like Tenet Healthcare, Max Healthcare Institute, Hims and RadNet, and private ones like Luz Saude and Lyra Health.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | $333M | $3.2B | - | ||
| Publicly listed | $21B | $4.5B | $21B | 1.6x | ||
| Publicly listed | $858M | $232M | $10B | 10.2x | ||
| Publicly listed | $2.3B | $178M | $6.5B | 2.4x | ||
| Publicly listed | $2B | $314M | $6.1B | 3.3x | ||
| Private | $100M | - | $5.8B | - |
Recovery Centers of America Public Comps
Recovery Centers of America is still privately-owned, but its public comps include HCA Healthcare, Humana Inc., Alcon, Fresenius, Dr. Sulaiman Al Habib, Tenet Healthcare, IHH Healthcare, Rede D'Or São Luiz, Apollo Hospitals and Encompass Health.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $76B | $16B | 1.9x | 1.9x | 9.4x | 9.4x | |||
| $130B | $3B | 0.4x | 0.3x | 17.8x | 16.6x | |||
| $10B | $2.6B | 3.4x | 3.3x | 13.4x | 12.5x | |||
| $26B | $4.2B | 1.6x | 1.6x | 10.1x | 9.4x | |||
| $3.7B | $927M | 6.4x | 5.9x | 25.2x | 24.7x | |||
| $21B | $4.5B | 1.7x | 1.6x | 8.1x | 7.5x | |||
| $6.3B | $1.5B | 3.3x | 3.0x | 13.8x | 13.6x | |||
| $11B | $1.3B | 1.7x | 1.6x | 14.3x | 8.4x | |||
This data is available for Pro users. Sign up to see all Recovery Centers of America competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Recovery Centers of America
| When was Recovery Centers of America founded? | Recovery Centers of America was founded in 2014. |
| Where is Recovery Centers of America headquartered? | Recovery Centers of America is headquartered in Philadelphia, PA, United States. |
| Is Recovery Centers of America publicly listed? | No, Recovery Centers of America is a private, VC-backed company. |
| How much funding has Recovery Centers of America raised? | Recovery Centers of America has raised $332M across 2 funding rounds. |
| What was Recovery Centers of America's last funding round? | Recovery Centers of America's last funding round was a $100M undisclosed-stage round in November 2016, led by Deerfield. |
| Who are Recovery Centers of America's investors? | Recovery Centers of America's investors include Deerfield. |
| Which companies are comparable to Recovery Centers of America? | Companies comparable to Recovery Centers of America include Luz Saude, Tenet Healthcare, Max Healthcare Institute, Hims, RadNet and Lyra Health. |
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