Congratulations CCMP d/b/a ERC Fort Worth -- A Great Opportunity Awaits.

On May 17, 2018, CCMP Capital Advisors, LLC d/b/a The Eating Recovery Center is proudly opening its 28th  eating disorder treatment center in the United States.  Its newest center is opening in Fort Worth, Texas approximately forty (40) miles from the ERC Dallas facility. ERC Fort Worth will be the sixth eating disorder center in Texas owned by CCMP d/b/a ERC, following on the heels of: ERC Houston; ERC The Woodlands; ERC San Antonio; ERC Austin, and ERC Dallas. This presence within the Lone Star State is not going unnoticed as CCMP d/b/a ERC attempts to become the preeminent eating disorder treatment center in Texas.

The timing of the opening is very fortuitous in that it will be kicking off a weekend in North Texas in which eating disorder foundations and  awareness will take the spotlight. On Saturday, May 19, 2018, the Annual Dallas NEDA Walk is taking place.  The Elisa Project is the organizer of that event.  Later that evening, the North Texas Chapter of Project HEAL will be presenting its Inaugural Gala.

I am honored to be speaking at the Project HEAL gala before the keynote address is given by my friend and our ally, Brian Cuban.  Truly, the upcoming weekend promises to be one of the biggest weekends ever in North Texas as the on-going battle against eating disorders takes front and center in the public's eye. However, one additional event/announcement needs to occur which would send a strong, clear unequivocal message that the eating disorder industry, community and research and scientific industries are standing as one in a united front against this insidious disease.

The disparity between for-profit centers and the academic/research community.

The financial, intellectual and power disparity between for-profit eating disorders treatment centers and the academic/research community has never been greater.

Relatively speaking, federal funding for eating disorders research is almost non-existent and averages approximately $28 million per annum. For those who believe $28 million is a significant number, consider federal funding spent on other diseases or conditions:

• Alcoholism: 18x more funding ($505 million)
• Schizophrenia: 13x more funding ($352 million)
• Depression: 12x more funding ($328 million)
• Food safety: 12x more funding ($333 million)
• Sleep disorders: 7x more funding ($187 million)

With the generally accepted figure of 30 million people representing the number of people in the United States who suffer from eating disorders, federal funding equates to less than ONE DOLLAR SPENT FOR EACH PERSON.

By comparison, in domestic transactions, private equity firms spent over $16.3 BILLION on behavioral health entities and acquisitions in 2017 alone. In 2015, eating disorder treatment was classified as a $3 billion industry per annum with a growth rate expected to be 5% per year.  The deal value of acquisitions of eating disorder treatment centers exceeded $2 BILLION dollars.

And yet, the gross disproportionality of money being invested in corporate entities which attempt to treat eating disorders merely perpetuates a broken system which is not reducing the horrendous death rate of one life every sixty-two (62) minutes and also is not resulting in a more clear, transparent, unified, community-accepted standard for the treatment of eating disorders. Contrarily, the best hope for those afflicted with this disease resides with the research scientists, those persons on the front line who study the biological causes and ramifications of the disease from which a greater understanding of the disease, and a more effective manner to treat eating disorders is possible.

In 1993, when former North Carolina State coach Jim Valvano was wracked with cancer, he gave one of the greatest, inspirational speeches in the sports world when he announced a partnership with ESPN to start the V Foundation for Cancer Research. Note that the foundation was started to raise funds for research … not treatment directly, and since 1993, the V Foundation has awarded over $200  million in cancer research grants nationwide. Numerous examples exist showing that investment in medical research is the best avenue for understanding and developing revolutionary treatment regiments to combat diseases.

CCMP d/b/a ERC's Opportunity to Send a Powerful Message

CCMP d/b/a ERC has a unique, bold opportunity to embrace and financially support the academic institutions and research scientists whom are the backbone of the industry.

When CCMP was the successful bidder at auction for ERC, ERC was represented by Jamieson Corporate Finance. Jamieson announced that as part of the transaction, ERC and its management team entered into a new “incentive plan” with CCMP Capital Advisors.  Prior thereto, when Lee Equity acquired ERC from Trinity Hunt, there was also an “incentive plan” negotiated for ERC. Not being privy to the specifics of those “incentive plans,” one can nonetheless logically speculate that the incentive plans are tied to the financial growth and expansion of ERC facilities. This is especially true since the rating given by Moody’s Investor Services is dependent upon, “… [Moody’s] believes ERC will continue to expand aggressively through growth of existing facilities, new facility openings and acquisitions.”

CCMP d/b/a ERC has no formal affiliation  or partnership with an academic, medical institution, let alone any medical institution conducting research into the biological aspects of the disease. Nor is one likely. Nonetheless, CCMP d/b/a ERC has the opportunity to reach across the aisle of the industry and support our scientists and academicians.

ERC has the opportunity, on March 17, 2018 to publicly announce that as part of the ever expanding ERC empire, it is embracing and supporting the critical contributions and work done by research scientists in the eating disorder field by donating fifty percent (50%) of the incentive payments it received or will receive from CCMP, or $100,000, whichever amount is greater, to the University of Texas Southwestern Medical Center, specifically its eating disorder program and the research being conducted by the professionals at UT Southwestern.

UT Southwestern's scientists' and professionals' ground breaking  research and study of the brain and its complexities as they relate to eating disorders will undoubtedly result in a much greater understanding of this disease ... and as a result, the saving of millions of more lives. Contrarily, the incentive payments being made to ERC by CCMP are not related to breakthrough medical research discoveries.  CCMP’s mission, as with any private equity firm is to participate in the acquisition of a corporation or asset, drive up its growth cycle  and then divest for a profit. However, ERC still has the opportunity to redistribute payments from the private equity firm to scientists and research professionals who are battling this disease on the front lines and who so desperately need funding.  Further, this type of altruistic conduct is keeping in line with the vision of ERC’s initial founder, Dr. Ken Weiner.

When Dr. Weiner was interviewed in November of 2017, Dr. Weiner extolled his own magnanimous virtues, as well as the virtues of ERC when he responded to questions as follows:

“I feel strongly that if you are lucky enough to do exceptionally well, you have an obligation to give back and take care of others.” 

Over time, I have come to appreciate that integrity is as important as competence when it comes to partnerships. I only surround myself and partner with people who have the highest level of integrity. If somebody wants to tell me it’s just business, that person is not my partner. To me, that is often an excuse for making poor short-term financial decisions that are not going to evolve into long-term success.”

“We are a mission-driven company. Everything starts with our mission to take the greatest care of patients, their families and referring professionals so that they view us as best in class.”

“Just like we have been with our mission of taking the greatest care of patients, their families and referring professionals so we are considered best in class, we have always been incredibly intentional about our culture. There are five pieces to it – three Cs and two Is.

The first piece is compassion – you must care deeply about our patients and their families if you are going to work here.

The second component is collaboration. Internally, we have to be a functional family. Otherwise, patients get distracted by our staff; they lose focus and lose the opportunity for a life-changing experience. Externally, I always tell my staff members that they are my ambassadors to the world. When they tell others that they work at Eating Recovery Center, what they say next sets the template for how that person understands who we are and what we do.

The third piece is competence. This is a high-competency organization, and we demand a lot of ourselves.

The next piece is something that I mentioned earlier: integrity. Everything from start to finish has to be done with the highest level of integrity.

Last is innovation. We have an obligation to elevate the field of eating disorder treatment – determining what works, what doesn’t, how we make change happen and so forth.”

Integrity. Collaboration. Compassion. Competence. Innovation.

All very admirable and necessary words. Qualities and standards to which we should all aspire. And now, what an incredible opportunity ERC has to put into action those very noble words and grand aspirations. ERC can show, through its actions, that it fully embraces its mission, it stands behind its words and believes in one of the preeminent eating disorder research centers in the United States by financially supporting them. And the ERC medical doctors, who comprise the minority owners of ERC, have the ability to take the money being paid to them by CCMP and instead of simply keeping that incentive pay, they can transfer it to those with greater financial needs and whose contributions to the eating disorder community are so incredibly crucial.

This type of contribution results in so many people benefitting. The ground breaking, world class work for which UT Southwestern Medical Center is known is recognized, encouraged and financially supported. Its scientists and professionals are energized by a significant influx of capital and support. ERC publicly and openly shows that its words are not merely words ... but are a catalyst for action. In one fell swoop, ERC can start to lay to rest the ever-increasing belief in the industry that CCMP d/b/a/ ERC is about money, first, last and foremost. But most importantly, our children, our loved ones, those who suffer as a result of this insidious disease, are given greater hope. THIS is the opportunity for ERC to be that one, gleaming candle of hope in an otherwise dark, deathly quite hospital hallway.

Great moments are born from great opportunities. ERC has a great opportunity to embrace its mission and its noble words. ERC needs to seize this occasion and create a great moment. The world awaits.