Advised on a Nonprofit Behavioral Health Affiliation and Regulatory Integration

Woods Services entered into an affiliation with Bridgeway Behavioral Health, a nonprofit mental health provider in New Jersey. Because both organizations are nonprofit entities, the transaction was structured as an affiliation rather than a traditional parent-subsidiary relationship.

Under the structure, Woods became the sole corporate member of Bridgeway, while Bridgeway retained defined governance rights, including the ability to appoint members to Woods’ board. The affiliation triggered a series of state-level reviews, including Certificate of Need and transfer-of-ownership approvals from the New Jersey Department of Health and Policy 109 approval through the Division of Mental Health and Addiction Services. Buttaci Leardi & Werner coordinated the regulatory approval process, managing extensive submissions and working with counterparties’ counsel to maintain continuity of operations throughout the review period. The affiliation closed successfully in February 2025 following nearly a year of regulatory review.