Pyramid Healthcare, Inc.

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1 Pyramid Healthcare, Inc. ANNUAL REPORT A Word from the CEO... In 2014, addiction is more prevalent than ever. It s a constant theme on television and on the radio; in books and on the big screen. The average consumer is more and more aware of the destructive impact of substance abuse and they re also more aware of the options for treatment. Since 1999, Pyramid Healthcare, Inc. has been developing a vertically integrated system of behavioral health care throughout Pennsylvania. Established and headquartered in Altoona, PA, we have grown over the past 15 years from one treatment program to a network of 62 behavioral health care facilities across Pennsylvania, New Jersey, and North Carolina, employing over 1,300 people. In 2012, we acquired October Road, Inc., a provider of outpatient MH/CD and ACTT services in North Carolina. In the same year, we purchased High Focus Centers, the largest private provider of behavioral health care services in New Jersey. In April 2014, we acquired Onward Behavioral Health (OBH) and its three subsidiaries: Rehab After Work, The Light Program and Life Counseling Services. Our growth over the past 15 years now allows us to serve our clients with consistent and coordinated care at all levels of the continuum more easily than ever in more places, resulting in better outcomes for those who turn to Pyramid Healthcare for help in their search for stability and recovery. Operating as a system of care has enabled us to bring together tremendous resources which ultimately benefit the client, the family, the payer, and the community. We look forward to continuing to build on this exceptional system of care for years to come. Operating as a system of care has enabled us to bring together tremendous resources which ultimately benefit the client, the family, the payer, and the community. Jonathan Wolf, CEO Jonathan Wolf, CEO PATIENT DAYS 2014 at a Glance October Road continues to grow Pyramid s approach: vertical integration Success of High Focus Centers Expansion and changes at Hillside An increase in the number of patient days demonstrates Pyramid s consistent growth. Employees celebrate 5, 10, and 15 years with Pyramid 1

2 REVENUES AND EXPENSES Vertical integration helps Pyramid Healthcare keep revenues and expenses balanced despite large, up-front investments in recent acquisitions. The Rise of October Road, Inc. Pyramid Healthcare acquired Asheville, North Carolina-based October Road, Inc. in April At the time, October Road provided mental health and substance abuse treatment services. Recently, October Road added two new treatment options in an effort to better serve its clients: peer support services and ambulatory detoxification services. Peer Support Services Peer support services give individuals the opportunity to learn to manage their recovery and advocacy process. Structured for adults 18 and older with a mental health disability, peer support services are individualized and recovery-focused, and enhance the development of coping and self-management skills. Ambulatory Detoxification October Road s new ambulatory detoxification services don t require extended on-site monitoring and are staffed by physicians, registered nurses, and appropriately licensed professionals who work together to monitor and encourage clients progress within the program. These new services offer streams of revenue not previously available to October Road while simultaneously providing a wider range of clients with the types of treatment they need to achieve recovery. Vertical Integration s Role in Fifteen Years of Success After fifteen years in the behavioral health care industry, Pyramid Healthcare remains a leader in terms of both geographic reach and quality of care. The secret to over a decade of success? Vertical integration, which allows Pyramid to reduce costs and increase the variety of types of care it can offer to its clients. From detoxification to sober living, Pyramid Healthcare has expanded its service line to provide cutting-edge treatment for clients in any and all stages of recovery. Vertical integration also has the tendency to increase success rates for Pyramid s clients, who can move seamlessly from one facility to the next while receiving a consistent quality of care. Pyramid s recent acquisitions of Onward Behavioral Health, October Road, Inc., High Focus Centers and others further demonstrate Pyramid s commitment to vertical integration as a business strategy, and also to the organizational vision to provide clients with a system of treatment in behavioral health care with ground-breaking results in the treatment of adults, children, and families. 2

3 Growth of High Focus Centers 2014 Highlights Pyramid Healthcare, Inc. celebrated its 15th anniversary in July Current stats: 62 facilities with over 1,300 employees High Focus Centers Branchburg, NJ location experienced a 200% increase in its total average daily census between Nov and July 2014 High Focus Centers (HFC), a 2012 Pyramid Healthcare acquisition, is the largest and most trusted center for outpatient addiction treatment programs and mental health counseling for adults and adolescents in New Jersey, with locations across the northern and central parts of the state, including Branchburg, Cranford, Freehold, Paramus, and Parsippany. Since November 2013, High Focus Centers experienced a large increase in the number of clients in its adult and adolescent programs. In particular, the number of clients admitted to the new High Focus Centers Branchburg location increased by nearly 200% between November 2013 and July These numbers are a testament to the high quality of care offered by High Focus Centers, and this positive trend looks poised to continue over the next fiscal year and beyond. AVERAGE DAILY CENSUS BY PROGRAM Pyramid became one of the largest behavioral health care providers in the nation following the OBH acquisition 125 employees attended Pyramid s Employee Anniversary Event in Altoona, PA on July 16 October Road added peer support services and ambulatory detoxification Each of Branchburg s programs (adult psychiatric, adolescent, and adult chemical dependency) have experienced an increase in the average daily census. TOTAL AVERAGE DAILY CENSUS BY PROGRAM Pyramid s Hillside facility treated almost an additional four people every month over the past fiscal year Pyramid Pittsburgh s outpatient program opened in January Although Branchburg s individual programs exhibit fluctuations in average daily census, the facility s total average daily census has followed a positive trend over the past fiscal year. 3

4 Pyramid Expands in Eastern Pennsylvania Hillside Keeps Climbing Pyramid Healthcare s Hillside facility, located in the Pocono Mountains in northeastern Pennsylvania, has seen significant growth since its opening in July Hillside s expansion is part of a larger trend towards increased demand for alcohol and substance abuse rehabilitation services, but Pyramid Healthcare s commitment to providing the best care possible for its clients sets Hillside apart from the competition, as evidenced by a consistent increase in Hillside s average daily census (ADC). Over the 2013 fiscal year, Hillside experienced, on average, a 14% month-to-month increase in its ADC. This means that, every month, almost an additional four people were in treatment at Hillside, compared to the previous month. Pyramid elected to search internally for new leadership at its growing facility. Jennifer Lembach, former program director at Pyramid s Quakertown adolescent facility, now holds the program director title at Hillside as it continues to make great strides towards becoming the premier treatment center in eastern Pennsylvania and New Jersey. HILLSIDE AVERAGE DAILY CENSUS Looking Ahead with OBH Pyramid Healthcare recently expanded its already impressive service offerings in Pennsylvania and New Jersey with the acquisition of Onward Behavioral Health (OBH) in May OBH brings its exceptional reputation as a high-quality provider of behavioral health care to Pyramid, along with over 300 employees and 26 locations across southeastern Pennsylvania and New Jersey. OBH offers substance abuse and mental health treatment through its subsidiaries, which include: Rehab After Work Outpatient and intensive outpatient services for chemically dependent clients Life Counseling Services Outpatient mental health and co-occurring disorders services provided by individual therapists The Light Program Outpatient mental health partial hospital/ intensive outpatient services EAP Life Management Services Employee assistance services Following its acquisition of OBH, Pyramid Healthcare is now recognized as one of the largest behavioral health care providers in the nation. Hillside s average daily census increased consistently across the past fiscal year, including an average month-to-month increase of 14% in the number of people admitted to Hillside. 4

5 Pyramid Celebrates 5, 10, & 15 Year Employees On July 16, Pyramid Healthcare honored employees with 5, 10, and 15 years of service at the Heritage Discovery Center in downtown Altoona with a catered dinner, refreshments, live entertainment and individual award presentations. A total of 125 employees attended the event, including the thirty 5-year employees, who received engraved pens, and fifteen 10-year employees, who received engraved clocks. Attendees also had the chance to celebrate the successes of employees with 15 years of service. These four employees, who have been with Pyramid Healthcare since its founding in 1999, received engraved watches and warm recognition from their colleagues and CEO Jon Wolf, who acknowledged each individual s accomplishments. All employees with five or more years of service were recognized with a messenger bag embroidered with the Pyramid Healthcare logo. From L to R: Admissions representatives Ebony Thompkins, Lisa Salaymal-Strohman (5+ years), Amy Walter, (5+ years) April Butterbaugh (5+ years) and Bobbi Denny (5+ years) Wolf, who also served as the evening s MC, summarized the year s accomplishments and announced future growth plans for Pyramid Healthcare. Following the event, he stated, Without the commitment and loyalty of our employees, many of whom have been with us since 1999, Pyramid Healthcare would not be the organization it is today. We were proud to celebrate the accomplishments and achievements of those absolutely indispensable employees who have been dedicated to our mission for 5,10, and 15 years, and look forward to welcoming additional employees into this very committed and valued group next year. Jon Wolf, CEO, poses with Walter Fleming Jr., Behavioral Healthcare Technician at the Duncansville Inpatient program. Walter was recognized along with three other employees for 15 years of loyal service. From L to R: Sandra Rankin (5 years) of Altoona Outpatient, Kathy Marsili (10+ years), Alix Armstrong of Southside Outpatient in Pittsburgh and Sue Himes (5 years) of Altoona Outpatient From L to R: Transportation Department drivers Mike Fanelli (5+ years) and Dan Tomlinson (5 years) From L to R: Tom Scranton, Community Relations Representative; Jon Wolf, CEO; and Jim Vernarsky, VP of Western Region Operations, celebrate 15 years with Pyramid Healthcare. 5

6 Pyramid Healthcare, Inc. Directors Jonathan Wolf James Andersen Calvin Neider Matthew Blevins James Donnelly Officers Jonathan Wolf, President Mark Moore, Treasurer Matthew Blevins, Secretary Erin Bard, Assistant Secretary Adolescent Services Ridgeview Adolescent Behavioral Health Center 4447 Gibsonia Road Gibsonia, PA Quakertown Adolescent Behavioral Health Center 2705 Old Bethlehem Pike Quakertown, PA School Programs Soaring Heights School (Autism) 550 Leonard Street Clearfield, PA Soaring Heights School (Autism) 493 South Highland Street DuBois, PA Soaring Heights School Leg Up Farm 4880 North Sherman St. Ext. York, PA New Vista Learning Center 493 South Highland Street DuBois, PA School Programs at Inpatient Facilities Ridgeview Quakertown Halfway Houses Gratitude House Men 901 6th Avenue Tradition House Women 830 6th Avenue Pine Ridge Manor Men S. Eagle Valley Road Tyrone, PA Adult Residential Inpatient Altoona 1894 Plank Road Duncansville, PA Belleville 3893 West Main Street Belleville, PA Pyramid Pittsburgh 306 Penn Avenue Pittsburgh, PA Adult/Adolescent Detoxification Altoona 1894 Plank Road Duncansville, PA Pyramid Pittsburgh 306 Penn Avenue Pittsburgh, PA Housing Services Allegheny County Housing Services for Men 1907 Hanover St., Apt. 10 Pittsburgh, PA Allegheny County Housing Services for Women 1937 Delaware Ave., Apt. 103 Pittsburgh, PA Grey House - Men 831 6th Avenue Prison Programs Blair County Hollidaysburg, PA Administrative Offices Central PA 270 Lakemont Park Bvld. Eastern PA Roma Corporate Center 1605 N. Cedar Crest Blvd. Suite 602 Allentown, PA Western PA Administrative Office Route 19 North Two Landmark Bldg., Ste.128 Cranberry Township, PA Outpatient Services Allentown Outpatient Roma Corporate Center 1605 N. Cedar Crest Blvd. Suite 602 Allentown, PA Altoona Outpatient 2 Sellers Drive Altoona, PA Chambersburg Outpatient 455 Phoenix Drive Chambersburg, PA Erie Outpatient 1224 French Street Erie, PA Pittsburgh (Southside) Outpatient Birmingham Towers Suite Wharton Street Pittsburgh, PA Pyramid Pittsburgh 306 Penn Avenue Pittsburgh, PA York Outpatient 104 Davies Drive York, PA Methadone Maintenance Foundations Medical Services Bantam Commons Building #2 124 Hollywood Drive Butler, PA Dolminis 2 Sellers Drive Altoona, PA York Pharmacotherapy Services 104 Davies Drive York, PA Hillside Adolescent Detoxification Adult Detoxification Adult Residential Inpatient 420 Supreme Court Drive East Stroudsburg, PA October Road, Inc. 119 Tunnel Road, Suite D Asheville, NC High Focus Centers 47 Maple Street Suite 401 Summit, NJ Onward Behavioral Health 1440 Russell Road Paoli, PA

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