Quapaw House finalizes deal in Arkansas for embattled Preferred Family Healthcare

Quapaw House, a not-for-profit substance abuse rehabilitation and behavioral health company based in Hot Springs, Ark., announced on Friday that it has finalized an agreement to acquire the assets and property of the embattled Preferred Family Healthcare in Arkansas, not including real estate holdings, effective Oct. 12.

Quapaw House has also reached an agreement to use PFH-owned clinics in Arkansas and other facilities. PFH facilities will be rebranded as Quapaw House facilities, according to a news release. PFH will continue to operate its facilities in Illinois, Kansas, Missouri and Oklahoma.

PFH has dealt with multiple scandals in Arkansas in recent months. In September, PFH lobbyist Russell Cranford pleaded guilty to bribing two former state legislators and an unidentified third legislator. In total, five lawmakers have been found guilty or pleaded guilty to charges stemming from an investigation into the company’s practices. A former PFH executive also was charged with Medicaid fraud. Prior to losing Medicaid contracts in Arkansas and announcing plans to close its operations in the state, PFH employed 500 professionals at its 47 locations in Arkansas.

Quapaw House CEO Casey Bright said in a statement that his organization intends to retain as many PFH employees as possible, minimizing disruptions to service for its now-former clients.

"As you can imagine, an acquisition of this size will take time to work through," Bright said. "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."