Sale of PFH’s Arkansas assets moves forward

Hot Springs, Arkansas-based substance-abuse rehabilitation and behavioral health company Quapaw House Inc. will acquire the Arkansas assets of Springfield-based Preferred Family Healthcare on or around Oct. 12, officials with the company say.

In an agreement finalized between the two companies, PFH will transfer all of its Arkansas assets and property, not including real estate holdings, to Quapaw House for undisclosed terms, according to a news release. Quapaw House previously signed a letter of intent to buy the assets, according to past Springfield Business Journal reporting.

“Simultaneously, we have reached a deal that will allow QHI to use PFH-owned properties, including all the Arkansas clinics and other facilities,” Quapaw House CEO Casey Bright said in the release, noting PFH facilities will be rebranded as Quapaw House centers. “As you can imagine, an acquisition of this size will take time to work through. We are analyzing every facet of their existing operation, taking equipment and facilities inventory, reviewing personnel and, most importantly, working to help transition the client base to QHI, if they choose to do so.

“We also must work through the process of licensing, credentialing and certification before fully taking over the PFH sites.”

PFH last month notified the Arkansas Department of Human Services it would be ceasing operations in Arkansas at all current facilities by Oct. 12, unless additional time would be necessary to ensure client care is available.

PFH spokesman Reggie McElhannon this morning issued an emailed statement: "We have been honored to serve the residents of Arkansas. As we worked to transition out of the state, we sought the most seamless transition for our employees and our clients. We are pleased to know our employees and clients have an excellent choice of employer and provider in QHI."

Legal issues in Arkansas were a contributor to PFH’s exit from the Natural State. Robin Raveendran and Helen Balding, both former PFH employees, were each charged this summer with two counts of felony Medicaid fraud. After Arkansas Attorney General Leslie Rutledge charged Raveendran in June, Arkansas DHS terminated its contracts with PFH.

Marci Manley, a spokeswoman for DHS in Arkansas, said PFH had provided behavioral health services to more than 5,000 Medicaid recipients at 47 Arkansas sites, according to past SBJ reporting. The nonprofit’s Medicaid claims in Arkansas totaled $36.2 million in 2017, she said.

McElhannon told SBJ in September PFH plans to continue providing community services for individuals with developmental disabilities, child welfare, employment services and behavioral health, as well as its 16 residential substance use disorder programs and numerous outpatient sites in Missouri, Oklahoma, Kansas and Illinois.