AUDIO – GUILTY AS SIN –
Oct. 22, 2025 – One of Kentucky’s largest for-profit residential addiction care treatment providers, which has been the subject of an FBI investigation for more than a year, is being sold. Addiction Recovery Care told staff this week that Ethema Health has signed a letter of intent to “acquire the assets and operations” of ARC as part of a “strategic consolidation.”
“Following necessary organizational changes, ARC’s ownership has determined that partnering with Ethema Health Corporation is the most responsible and forward-looking step towards a stronger future,” ARC said in an Oct. 22 press release. “Ethema will operate the considerable assets under its existing Kentucky brand, ARIA Kentucky.” The announcement of the acquisition is the latest in a tumultuous year for the addiction treatment giant. Over the last 14 months, the company has laid off hundreds of employees and closed all but 14 of its treatment centers. In September, ARC announced it was closing five more locations, including its flagship location in Louisa, blaming Medicaid reimbursement cuts. It was not immediately clear how the sale affects ARC’s remaining clients.
