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H2C Secures Operators for Two Behavioral Health Hospitals

May 2023

NEW YORK – H2C Securities Inc.  (“H2C”), a healthcare-focused strategic advisory firm, served as the exclusive advisor to FJM Health and Senior Services (“FJM”), to secure alternative operators for two recently-developed inpatient psychiatric hospitals located in Prescott, AZ and Kennewick, WA. 


Executive Director Matthew Tarpley and Vice President Michael Fioravanti led the transactions for H2C.


The Prescott, AZ facility, completed in 2019, features 14 patient rooms with 24 beds, an onsite pharmacy, group and seclusion rooms and expansion potential to a 40-bed facility given the zoning envelope. Formerly operated as “Medical Behavioral Hospital of Northern Arizona”, the new operator will continue inpatient behavioral services by providing psychiatric treatment and structured supportive care to clients coping with mental and behavioral health challenges.  Centered between Yavapai Regional Medical Center West and the Northern Arizona VA Hospital, the facility will be the 12th location for the tenant.


The Kennewick, WA facility, completed in 2020, will be expanded over the next 12-24 months to accommodate a 72-bed inpatient behavioral hospital.  Given the restrictive CON in the State of Washington, the Tri-Cities area has significant demand for psychiatric health and a significant “unmet bed demand.” The facility possesses a unique characteristic in which it does not feature a maximum length of stay for patients, a rare provision of use which the tenant will be able to capitalize on. The strategic location is centered between three acute-care hospitals located within a 10-mile drive and will act as a natural-referral sources for the tenant. 


“There is clear demand for inpatient psychiatric care throughout the country and we were able to align FJM with two proven operators in the space to achieve an optimal outcome,” said Matthew Tarpley. “The facilities are vital to the surrounding communities, and we would expect the reach of the operators to grow as the stigma surrounding mental illness continues to shrink,” said Michael Fioravanti. 


Notably, the transactions represent the tenth behavioral health deal executed between H2C’s real estate and M&A team – over the past 24 months. 

About FJ Management Inc.

FJ Management Inc. is a Utah-based private holding company that manages a diverse portfolio of petroleum, healthcare, and hospitality related assets under the guiding principles of Integrity, Mutual Respect, and Excellence. Founded in 1968 by O. Jay Call, the company continues to grow and prosper and is committed to long term investments that add value to current businesses while mitigating risks. 

About H2C Securities Inc. ("H2C")

H2C is a strategic advisory and investment banking firm committed to providing superior advice to healthcare organizations, higher education institutions, and related organizations throughout the United States. H2C’s professionals have a long track record of success in mergers and acquisitions, capital markets, and real estate transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.

For more than 20 years, the real estate investment banking professionals at H2C have successfully served as advisors on real estate transactions in excess of $17.0 billion nationwide. For more information on our real estate advisory group, please contact one of the H2C professionals or visit our website at

Securities and services offered through H2C Securities Inc., member FINRA/SIPC, a registered broker-dealer and an indirect subsidiary of Fifth Third Bank, National Association. All rights reserved. Securities and services offered through H2C Securities Inc.: Are Not FDIC Insured; Offer No Bank Guarantee; May Lose Value; Are Not Insured by any Federal Government Agency; Are Not a Deposit. 

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