Acadia Healthcare Company, Inc. operates as a pure-play provider of behavioral healthcare services in the United States (the ‘U.S.’).
Acquisitions
On February 22, 2024, the company acquired substantially all of the assets of Turning Point Centers (‘Turning Point’), a 76-bed specialty provider of substance use disorder and primary mental health treatment services that supports the Salt Lake City, Utah, metropolitan market. Turning Point provides a full continuum of treatment services, including...
Acadia Healthcare Company, Inc. operates as a pure-play provider of behavioral healthcare services in the United States (the ‘U.S.’).
Acquisitions
On February 22, 2024, the company acquired substantially all of the assets of Turning Point Centers (‘Turning Point’), a 76-bed specialty provider of substance use disorder and primary mental health treatment services that supports the Salt Lake City, Utah, metropolitan market. Turning Point provides a full continuum of treatment services, including residential, partial hospitalization and intensive outpatient services.
Business Strategy
The company’s business strategy is to become the indispensable behavioral healthcare provider for the high-acuity and complex needs patient population. The company is committed to providing the communities the company serves with high-quality behavioral healthcare services, while growing the company’s business, increasing profitability and creating long-term value for the company’s stockholders. This strategy includes five growth pathways: expansions of existing facilities, joint venture partnerships, de novo facilities, acquisitions and expansion across the company’s continuum of care.
The company’s core strategic priorities include driving organic growth of existing facilities; fuel facility growth through accelerated joint venture partnerships and de novo builds and pursuing programmatic mergers and acquisitions; and accelerating expansion across the care continuum, particularly for patients with opioid use and other substance use disorders.
Operations
The company’s facilities and services can generally be classified into the following categories: acute inpatient psychiatric facilities; specialty treatment facilities; CTCs; and residential treatment centers. Outpatient programs associated with the company’s facilities are included within each respective service line.
The company receives payments from the following sources for services rendered in the company’s facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services (‘CMS’) and other programs; and (iv) individual patients and clients. For the year ended December 31, 2024, the company received 56.5% of the company’s revenue from Medicaid, 26.0% from commercial payors, 14.2% from Medicare and 3.3% from other payors.
At December 31, 2024, the company operated 262 behavioral healthcare facilities with approximately 11,850 beds in 39 states and Puerto Rico. Of the company’s facilities, excluding CTCs, approximately 56% are acute inpatient psychiatric facilities, approximately 35% are specialty treatment facilities and approximately 9% are residential treatment centers as of December 31, 2024. The company operates 163 CTCs, 21 of which are owned properties and 142 of which are leased properties. Of the company’s facilities that are not CTCs, 91% of the company’s beds are at owned properties and 9% are at leased properties.
Acute Inpatient Psychiatric Facilities
Acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. The acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists. The company’s facilities that offer acute care services provide evaluation and crisis stabilization of patients with severe psychiatric diagnoses through a medical delivery model that incorporates structured and intensive medical and behavioral therapies with 24-hour monitoring by a psychiatrist, psychiatric trained nurses, therapists and other direct care staff. Typical lengths of stay for crisis stabilization and acute care range from three to five days and from five to twelve days, respectively.
Specialty Treatment Facilities
The company’s specialty treatment facilities include residential recovery facilities and eating disorder facilities. The company provides a comprehensive continuum of care for adults with addictive disorders and co-occurring mental disorders. The company’s detoxification, inpatient, partial hospitalization and outpatient treatment programs are cost-effective and give patients access to the least restrictive level of care. All programs offer individualized treatment in a supportive and nurturing environment.
The majority of the company’s specialty treatment services are provided to patients who abuse addictive substances such as alcohol, illicit drugs or opiates, including prescription drugs. Some of the company’s facilities also treat other addictions and behavioral disorders such as chronic pain, sexual compulsivity, compulsive gambling, mood disorders, emotional trauma and abuse. The goal of the company’s treatment facilities is to provide the appropriate level of treatment to an individual no matter where they are in the lifecycle of their disease in order to restore the individual to a healthier, more productive life, free from dependence on illicit substances and destructive behaviors. The company’s treatment facilities provide a number of different treatment services such as assessment, detoxification, medication-assisted treatment, counseling, education, lectures and group therapy. The company assesses and evaluates the medical, psychological and emotional needs of the patient and address these needs in the treatment process. Following this assessment, an individualized treatment program is designed to provide a foundation for a lifelong recovery process. Many modalities are used in the company’s treatment programs to support the individual, including the twelve-step philosophy, cognitive/behavioral therapies, supportive therapies and continuing care.
Residential Recovery Facilities. The company’s residential recovery facilities house and care for patients over an extended period and typically treat patients from a broadly defined regional market. The company provides three basic levels of residential treatment depending on the severity of the patient’s addiction and/or behavioral disorder. Patients with the most severe dependencies are typically placed into inpatient treatment, in which the patient resides at a treatment facility. If a patient’s condition is less severe, he or she will be offered day treatment, which allows the patient to return home in the evening. The least intensive service is where the patient visits the facility for just a few hours a week to attend counseling/group sessions.
Following primary treatment, the company’s extended care programs typically offer residential care, which allows patients to develop healthy and appropriate living skills while remaining in a safe and nurturing setting. Patients are supported in their recovery by a semi-structured living environment that allows them to begin the process of employment or to pursue educational goals and to take personal responsibility for their recovery. The structure of this treatment phase is monitored by a primary therapist who works with each patient to integrate recovery skills and build a foundation of sobriety with a strong support system. Length of stay will vary depending on the patient’s needs.
The company’s outpatient clinics serve patients that do not require inpatient treatment or are transitioning from a residential treatment program; have employment, family or school commitments; and have stabilized in their recovery practices and are seeking ongoing continuing care.
Eating Disorder Facilities. The company’s eating disorder facilities provide treatment services for eating disorders, each of which may be effectively treated through a combination of medical, psychological and social treatment programs.
The company’s behavioral therapies are delivered in an array of treatment models that may include individual and group therapy, intensive outpatient, outpatient, partial hospitalization/day treatment, road to recovery and other programs that can be either abstinent or medication-assisted based.
Comprehensive Treatment Centers
The company’s CTCs specialize in providing medication-assisted treatment in an outpatient setting. Medication-assisted treatment combines behavioral therapy and medication to treat substance use disorders. CTCs primarily utilize medication-assisted treatment to individuals addicted to opiates, such as opioid analgesics (prescription pain medications). The company’s professional staff can provide a broad range of patient services, including personalized treatment plans, medication management, medication dispensing, individual therapy, group therapy, peer support, vocational training and social support services. Medication is used to normalize brain chemistry to block the euphoric effects of opioids allowing the company’s professional staff to provide behavioral therapy. The length of treatment differs from patient to patient, but typically lasts longer than one year.
Residential Treatment Centers
Residential treatment centers treat patients with behavioral disorders in a non-hospital setting. The facilities balance therapy activities with social, academic and other activities. Because the setting is less intensive, demands on staffing, security and oversight are generally lower than inpatient psychiatric facilities. Over time, however, residential treatment centers have continued to serve increasingly severe patients who would have been treated in acute care facilities in earlier years.
The company provides residential treatment care through a medical model residential treatment facility, which offers intensive, medically-driven interventions and individualized treatment regimens designed to deal with moderate to high level patient acuity. Children and adolescents admitted to these facilities typically have had multiple prior failed treatment plans, severe physical, sexual and emotional abuse, termination of parental custody, substance abuse, marked deficiencies in social, interpersonal and academic skills and a wide range of psychiatric disorders. Treatment typically is provided by an interdisciplinary team coordinating psychopharmacological, individual, group and family therapy, along with specialized accredited educational programs in both secure and unlocked environments. Lengths of stay range from three months to several years.
Certain of the company’s residential treatment centers provide group home and therapeutic group home programs. The company’s group home programs provide family-style living for youths in a single house or apartment within residential communities where 24-hour staff provide supervision and support. The goal of a group home program is to teach family living and social skills through individual and group counseling sessions within a real-life environment. The residents are encouraged to take responsibility for the home and their health as well as actively take part in community functions. Most attend an accredited and licensed on-premises school or a local public school. The company also operates therapeutic group homes that provide comprehensive treatment services for seriously, emotionally disturbed adolescents.
Sources of Revenue
As of December 31, 2024, the company received payments from the following sources for services rendered in the company’s facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by CMS and other programs; and (iv) individual patients and clients.
Regulation
Most of the company’s inpatient and residential facilities maintain accreditation from private entities, such as The Joint Commission or the Commission on Accreditation of Rehabilitation Facilities (‘CARF’).
Many of the states in which the company operates facilities have enacted certificate of need (‘CON’) laws that regulate the construction or expansion of certain healthcare facilities, certain capital expenditures or changes in services or bed capacity.
The company have been in material compliance with the HIPAA regulations and have developed the company’s policies and procedures to ensure ongoing compliance.
The Emergency Medical Treatment & Labor Act imposes additional obligations on hospitals with specialized capabilities, such as the company, to accept the transfer of patients in need of such specialized capabilities if those patients present in the emergency room of a hospital that does not possess the specialized capabilities.
The company has participated in certain relief programs offered through the Coronavirus Aid, Relief and Economic Security Act, including receipt of funds relating to the Public Health and Social Services Emergency Fund (‘PHSSE Fund’), also known as the Provider Relief Fund, and the American Rescue Plan (‘ARP’) Rural Payments for Hospitals.
Competition
The company’s principal competitor is Universal Health Services, Inc. An important part of the company’s business strategy is to continue making targeted acquisitions of other behavioral healthcare facilities.
Seasonality of Demand for Services
The company’s residential recovery and other inpatient facilities typically experience lower patient volumes and revenue during the holidays, and the company’s child and adolescent facilities typically experience lower patient volumes and revenue during the summer months, holidays, and other periods when school is out of session.
History
Acadia Healthcare Company, Inc. was founded as a limited liability company in the state of Delaware in 2005. The company was incorporated in 2005.