Two Sigma Impact and FFL Partners Acquire Majority Ownership of Community Medical Services

Acquisition Will Enable Company to Become a Leader in the Evolution of Opioid Treatment

Two Sigma Impact Invests in Penn Foster

Two Sigma Impact and BayPine announced a significant new investment in Penn Foster, a workforce development pioneer who delivers skill-based training for more than 300,000 working learners each year.

SAN FRANCISCO & NEW YORK – December 21, 2021 – FFL Partners (“FFL”), a private equity firm focused on growth investments in middle market companies, and Two Sigma Impact, the impact investing business of Two Sigma, today announced that they have acquired a majority ownership of Community Medical Services (“CMS” or “the Company”), a high growth and market-leading Opioid Treatment Program provider. Financial terms of the private transaction were not disclosed.

Headquartered in Scottsdale, Arizona, CMS operates more than 45 clinics in 9 states that provide high-efficacy opioid use disorder (“OUD”) treatment, while reducing the stigma associated with it. The Company’s highly differentiated, mission-driven platform is well positioned to treat OUD with high-quality compassion-based programs. CMS’s management has a proven track record of growth and execution to improve patient outcomes.

“FFL, with its reputation for operational excellence in the behavioral health space, combined with Two Sigma Impact’s emphasis on data science and workforce development, made them the ideal partners as we take the next step in our growth vision for CMS,” said Nick Stavros, CEO of Community Medical Services. “Both groups share our conviction that a strong patient-centric focus on quality care will lead to the greatest outcomes and the most sustainable value, and we look forward to the impact our strategic partnership will have in our fight to help heal those suffering from addiction.”

“We’re happy to be partnering with Two Sigma Impact and supporting CMS’ innovative, data-based model of care at a time when there’s a huge need for increased access to the care CMS provides,” said Chris Harris, Managing Partner at FFL Partners. “Behavioral healthcare is a long-time focus of FFL’s SEED process to identify sub-sectors where we can add the greatest value, and we look forward to applying this experience to drive CMS’ growth while maintaining the highest standards of patient care.”

“Nick and his management team have done an excellent job in building the CMS platform and we are excited to be partnering with FFL to help the company continue to execute on their mission of providing compassionate addiction treatment to the increasing number of people who suffer from substance abuse,” said Geoff Lieberthal, Partner at Two Sigma Impact. “We believe our focus on data science and workforce development can help drive value at the Company, especially as it looks to expand into new markets and enhance its therapist recruitment and retention practices – both key drivers of company performance.”

OUD care is one of the largest and fastest growing segments of U.S. healthcare and is suffering from a supply constraint of qualified medical professionals. In addition, opioid users are one of the most significantly under-diagnosed and under-treated populations in the nation, with only about 43 percent

of the 4.6 million individuals suffering from OUD having been diagnosed and only 40-50 percent of those diagnosed receiving treatment. These factors are creating significant demand for substance abuse treatment programs that are focused on passionate care and positive outcomes.

“One of the most disturbing aspects of the opioid crisis in this country is that the gap between the volume of people in need of treatment and the availability of high-quality treatment grows exponentially larger each year,” added Stavros. “CMS is committed to not just providing the highest quality treatment to those suffering from opioid-use disorders but also to changing the way society views addiction and addiction treatment.”

The Company was advised by Houlihan Lokey and Alston & Bird LLP, while FFL and Two Sigma Impact were advised by Willkie Farr & Gallagher LLP.


About Two Sigma Impact

Two Sigma Impact is a business of Two Sigma. Its mission is to combine active, principled ownership and data science with the goal of achieving superior returns and positive social outcomes. The Two Sigma Impact team is focused on workforce impact – where they anticipate innovative and thoughtful investments in humans will lead to an enhanced employee experience, productivity, and long-term financial returns. As part of Two Sigma, Two Sigma Impact has access to expertise in data science, technology, and a range of corporate specialties, and seeks to support its portfolio companies with those resources.

About FFL Partners

Founded in 1997, FFL Partners is a San Francisco-based private equity firm with over $5 billion under management. FFL pursues thematic investments in business services and healthcare services partnering with exceptional management teams where the firm’s high engagement operating model and extensive network can help accelerate growth and unlock value. Growing our businesses has provided over 75% of the value created by FFL for its investors. For additional information please visit

About Community Medical Services

Community Medical Services (“CMS”) began providing treatment in Phoenix, Arizona in 1983 and has since expanded its footprint into the states of Montana, North Dakota, and Alaska, Indiana, Michigan, Ohio, Wisconsin, and Texas through a combined De Novo and M&A strategy. CMS operates 45 clinics across nine states. CMS opened the nation’s first 24/7 Opioid Treatment on Demand (OTOD) center in Phoenix and has since gone on to expand the model to Columbus, Ohio and West Allis, Wisconsin. CMS’ focus is on breaking down the barriers that are preventing people from seeking and succeeding in treatment. For more information, please visit:

Read more from Impact

This article is not an endorsement by Two Sigma of the papers discussed, their viewpoints or the companies discussed. The views expressed above reflect those of the authors and are not necessarily the views of Two Sigma Investments, LP or any of its affiliates (collectively, “Two Sigma”). The information presented above is only for informational and educational purposes and is not an offer to sell or the solicitation of an offer to buy any securities or other instruments. Additionally, the above information is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Two Sigma makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Click here for other important disclaimers and disclosures.

Related Reading

This section links out to multiple articles. To read the article, click the headline.