Hospitals

N.C. mental health services firm Saguaro raises $27M

Saguaro Group, a North Carolina company whose business operations provide primarily mental health services, has […]

Saguaro Group, a North Carolina company whose business operations provide primarily mental health services, has closed on more than $27 million in new financing, according to securities filings.

The securities documents show that the company raised the $27.4 million in a stock sale started on July 1 and all securities in the offering have been sold. Charles Stephens, owner of the Saguaro Group, was unavailable and a message left at Saguaro’s offices Thursday morning was not returned. But in Saguaro’s 2010 annual report, the company describes a “strategic plan” adopted by Saguaro Group senior management in January 2010  that will guide the company over the next three years. The company lists among its 2011 goals the start of therapeutic foster care services and preparation for the transition from a fee-for-service environment to a managed care system.

Raleigh, North Carolina-based Saguaro Group is comprised of three subsidiary companies: Morrisville, North Carolina-based Triumph, LLC  provides a range of mental health services in 17 North Carolina counties while Whiteville, North Carolina-based Community Innovations provides support services to those with disabilities. A third subsidiary, Saguaro Management and Accounting Services, provides management and accounting services to the other two companies. Saguaro is also affiliated with four other companies that provide mental health and disabilities services in North Carolina and Arizona.

Saguaro Group companies have more than a decade of experience providing services in North Carolina. Community Innovations formed in 1998, according to corporation filings at the Secretary of State’s office. Triumph was founded in 1999. Saguaro Group was formed in 2006, according to state records.

Saguaro Group’s annual report shows that mental health comprises the vast majority of the company’s services at 96 percent; developmental disabilities comprises just 3 percent and substance abuse less than 1 percent.  The report does not list a revenue figure for the companies, but in the securities filing,  Saguaro Group states that its annual revenue falls between $25 million and $100 million. About 73 percent of that revenue comes from mental health services.  The company generates more than 80 percent of its revenue from Medicaid payments.

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