Corporation Backs Out of Partnership With ARC

By Roberta Cantrell
BSN Editor

A news release received by The Big Sandy News from Vanessa Keaton of Addiction Recovery Care, LLC (ARC), announced Wednesday, Dec. 31, that Ethema Health Corporation has backed away and will not be moving forward from the previously announced potential partnership with ARC. The potential sale was announced in October in a news release that said the two companies had “entered into a letter of intent” for Ethema to acquire the assets and operations of Addiction Recovery Care (ARC). It did not disclose the sale price. Ethema is based in Palm Beach, Florida.

A letter written in October by ARC founder Tim Robinson stated “Ethema Health Corporation, through its subsidiary ARIA Kentucky, LLC, has signed a Letter of Intent to acquire various healthcare assets and operations of ARC. This transaction includes ARC, Bellefonte Hospital and Recovery Center, Pioneer Rural Health Clinic, South Creek Drug, and our laboratory.”

ARC is still under investigation by the FBI for possible health care fraud and under scrutiny by insurers who process claims for patient care had been cutting back reimbursement. At one time, Arc was touted as the fastest fastest-growing provider of addiction services in Kentucky having multiple facilities, 1,800 residential treatment beds and over 1,350 employees, however a lot of those business have closed and many of those employees have lost their jobs since 2024.

A spokesperson for the FBI in Louisville on Friday said the agency could not comment on the status of the investigation as it “is still ongoing.”

Over the past year, ARC has closed multiple facilities and programs and laid off several hundred employees. At its peak in 2024, ARC had about 1,800 residential treatment beds, programs throughout Kentucky and about 1,350 employees.

The press release stated ARC the for-profit provider of substance abuse treatment in Kentucky, said they look forward to continuing to serve their clients and communities.