New Capital Commitment, Operational and Management Resources to Strengthen Elements Behavioral Health

LONG BEACH, Calif., Dec. 27, 2018 /PRNewswire/ -- Project Build Behavioral Health, LLC ("Project Build") announced that it has committed significant capital, operational and management resources to Elements Behavioral Health, Inc. ("Elements" or the "Company") to help ensure the future strength and growth of the Elements operations.

Elements, a national provider of substance abuse and other behavioral health programs, initiated bankruptcy proceedings under Chapter 11 in May 2018. Previously, Project Build had acquired Elements debt and provided the debtor-in-possession financing in advance of its purchase of substantially all of the Company's assets. It is expected that this process will result in a clean balance sheet including the elimination of $182 million in debt.

Leadership. Kirk Kureska, currently interim CEO of Elements, will continue to lead the business. Rob Waggener, former CEO of Foundations Recovery Network and former Vice President for Addiction Services at Universal Health Services, will serve as senior advisor to Project Build and has been working with Kirk Kureska to ensure a successful transition. 

"The investment and vision provided by Project Build will form the foundation for growth of a broad new array of services for individuals and families struggling with substance use and mental health disorders," said Kureska. "Every person we serve is unique, and every person we serve needs a tailored approach to meeting their unique needs. Project Build will offer proven, evidence-based and innovative approaches to substance use and other mental health disorders nationwide." 

Mr. Waggener added, "The investor group shares our vision and passion to transform the substance use space nationally with integrity and with quality. With new capital, a stronger balance sheet and access to resources, we are excited to build a fresh approach in the behavioral health field."

Capital Commitment. To strengthen the Elements operations for the future, Project Build's investors made a capital commitment of $29 million to fund the Company's operations and restore its position as a leading behavioral health provider. Project Build's investor group, led by BlueMountain Capital Management, a multi-strategy alternative investment manager, expects to make additional investments to fund the Company's future growth.

Contributed Assets. To expand the range of services the Company provides, Project Build will be adding several units focused on eating disorders, programs for the military community, and substance abuse treatment. These units will be combined with Elements. With the inclusion of these units, Elements intends to develop a full array of services designed to improve accessibility, coordinate care in local communities, and offer innovative disease management approaches in the substance abuse space.         

In connection with its plans for long-term stability and growth, the Company is in the process of closing all facilities in California, Utah and Mississippi, to allow resources to be directed to serving the needs of clients at its remaining facilities. The remaining operations will consist of nine facilities in five states.

About Elements Behavioral Health
Elements Behavioral Health is a family of behavioral health programs located throughout the United States. The Elements Behavioral Health® family of programs offers comprehensive, innovative treatment for substance abuse, sexual addiction, trauma, eating disorders, and other mental health disorders. Through its programs, the company is committed to delivering clinically sophisticated treatment that promotes permanent lifestyle change, not only for the patient but for the entire family network.

Media Contact:
Arthur Palochak
Vice President of Business Development
Elements Behavioral Health
[email protected]
505-699-5167

SOURCE Elements Behavioral Health, Inc.