Acadia Healthcare Company, Inc. is an American provider of for-profit behavioral healthcare services. It operates a network of over 225 facilities across the United States and Puerto Rico.[1]
 | |
| Company type | Public |
|---|---|
| Founded | 2005 |
| Headquarters | Franklin, Tennessee, U.S. |
Number of employees | 28,600 (2020) |
| Website | acadiahealthcare |
The company is headquartered in Franklin, Tennessee.[2] As of 2024, Acadia operated over 50 inpatient psychiatric hospitals in 19 U.S. states, including Arizona, Arkansas, Florida, Georgia, Indiana, Michigan, Missouri, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Utah, and Wisconsin.[3][4][5][6][7] It is one of the country's largest hospital systems.[3]
Acadia was founded as a private corporation in 2005 by Reeve B. Waud and went public in 2011.[3]
Business model
editSince the passage of the Affordable Care Act, which requires U.S. insurers to cover mental health care, Acadia has partnered with non-profit U.S. hospital systems such as Henry Ford in Michigan, Geisinger in Pennsylvania, and Nebraska Methodist.[3][8][9] The for-profit partner typically operates facilities under the names of its non-profit partners, such as Mount Carmel Behavioral Health in Columbus, Ohio, which Acadia operates for Mount Carmel Health System.[10]
Acadia markets directly to consumers to encourage them to "skip the ER" at their local not-for-profit hospital and come directly to an Acadia facility with mental health issues.[3] It develops relationships with first responders to encourage them to bring people experiencing mental health issues directly to an Acadia facility and with emergency room staff to encourage referrals.[3]
Operations
editUnited States
editAcadia operates facilities for patients with behavioral problems, PTSD, trauma, eating disorders and substance abuse.[11] In 2022, it had about 22,500 employees and a daily patient census of about 70,000 patients and was said to be the largest pure-play behavioral health company.[12] Also in 2022, it opened a children's hospital in Chicago, a joint venture facility in Knoxville, and two comprehensive treatment centers. Revenue for the third quarter of the year was $666.7 million, an increase of 13.5% over the third quarter of 2021. It had a network of 242 behavioral healthcare facilities with approximately 10,800 beds in 39 states and Puerto Rico. 300 new beds were planned to be opened during the year.[13]
United Kingdom
editIn June 2014, Acadia bought Partnerships in Care, a British provider of mental health and social care services, and acquired the mental health assets of Care UK in May 2015.[14]
The company has been investigated by the Competition and Markets Authority in the UK because of concerns about the impact of its acquisition of Priory Group on competition. It sold 22 behavioral health facilities for £320 million to BC Partners in October 2016.[15]
Legal and ethical issues
editIn July 2023, Acadia was ordered to pay $405 million in a judgment on a lawsuit filed by the guardians of a New Mexico minor.[clarification needed][5] In October 2023, the company settled a $400 million suit for three other cases at the same facility,[clarification needed] which has since been shut down.[2]
In January 2024, Utah's Department of Health and Human Services ordered Midvale's Highland Ridge Hospital to hire an independent monitor for ten hours a week to oversee safety compliance.[16] After another series of safety violations in February, licensing officials required Highland to increase oversight to 40 hours per week.[16] In April 2024, Acadia announced plans to close the facility the following month.[17][18]
In June 2024, Acadia and fellow for-profit United Health Services were found by the Senate Committee on Finance and the Senate Committee on Health, Education, Labor, and Pensions to have endangered the welfare of children in their facilities as a result of a business model that optimized revenue instead of optimizing care.[4][19][20] The committees' report stated the problems "occur inevitably and by design: they are the direct causal result of a business model that has the incentive to treat children as payouts and provide less than adequate safety and behavioral health treatment in order to maximize operating and profit margin".[19]
Acadia has been criticized for detaining patients in its facilities against their will, even when holding them was not medically necessary.[3] Patients have been held under mental health laws designed to protect them from being a danger to themselves or others, thus increasing payments to the company.[3] Some were released only after a formal complaint or a lawsuit.[3]
In September 2024, Acadia settled with the U.S. Securities and Exchange Commission (SEC) for multiple alleged violations, including a $19.85 million settlement for false billing for medically unnecessary inpatient services[21] and $1.39 million for preventing whistleblowers from coming forward.[22]
References
edit- ^ "Acadia Healthcare Reports First Quarter 2021 Results and Increases 2021 Guidance". www.businesswire.com. April 29, 2021. Retrieved May 19, 2021.
- ^ a b Larson, Chris (October 31, 2023). "Acadia Healthcare Reaches $400M Settlement for Abuse Litigation". Behavioral Health Business. Retrieved September 2, 2024.
- ^ a b c d e f g h i Silver-Greenberg, Jessica; Thomas, Katie (September 1, 2024). "How a Leading Chain of Psychiatric Hospitals Traps Patients". The New York Times. Retrieved September 2, 2024.
- ^ a b Irwin, Lauren (June 12, 2024). "Children in residential treatment facilities face multiple risks". The Hill.
- ^ a b Larson, Chris (July 12, 2023). "Acadia Healthcare Faces $405M Judgement in Civil Abuse Case". Behavioral Health Business. Retrieved September 2, 2024.
- ^ Larson, Chris (August 1, 2024). "Acadia Healthcare Shutters 5 Facilities, CEO Waves Off Excoriating Senate At-Risk Youth Report". Behavioral Health Business. Retrieved September 2, 2024.
- ^ Wahlberg, David (October 26, 2023). "Work begins on psychiatric hospital on Madison's Far East Side". Wisconsin State Journal. Retrieved September 2, 2024.
- ^ "Acadia Healthcare Forms Joint Venture Partnership With Nebraska Methodist Health System". Business Wire. July 24, 2023.
- ^ Herman, Bob (July 8, 2024). "Pulling back the curtain on psychiatric hospital joint ventures". Stat. Retrieved September 2, 2024.
- ^ Bannow, Tara (July 8, 2024). "Troubled for-profit chains are stealthily operating dozens of psychiatric hospitals under nonprofits' names". Stat. Retrieved September 2, 2024.
- ^ "New psychiatric hospital to provide mental health services". Greenville on line. December 4, 2016. Retrieved December 23, 2016.
- ^ "Acadia Healthcare Taps Walgreens Vet Dr. Nasser Khan to Lead Largest Segment". Behavioral Health Business. September 19, 2022. Retrieved November 7, 2022.
- ^ "CORRECTING and REPLACING Acadia Healthcare Reports Third Quarter 2022 Results". Businesswire. October 31, 2022. Retrieved November 7, 2022.
- ^ "Mears Group acquires Care UK's domiciliary care service for £11.3m". HealthInvestor. June 1, 2015. Retrieved June 13, 2015.
- ^ "BC PARTNERS AGREES £320M DEAL FOR 22 PRIORY CLINICS". Insider media. October 21, 2016. Retrieved December 23, 2016.
- ^ a b Miller, Jessica (March 20, 2024). "Why Utah brought 'one of the strictest sanctions' possible against this hospital". The Salt Lake Tribune. Retrieved September 2, 2024.
- ^ Miller, Jessica (April 8, 2024). "Utah hospital hit with 'one of the strictest sanctions' by state licensers now plans to close". The Salt Lake Tribune. Retrieved September 2, 2024.
- ^ Herbets, Adam (April 8, 2024). "Utah psychiatric hospital to shut down after years of safety concerns exposed by FOX 13 Investigates". KSTU. Retrieved September 2, 2024.
- ^ a b Larson, Chris (June 12, 2024). "Senate Finance Committee Releases Excoriating Investigation of Abuse in At-Risk Youth Industry". Behavioral Health Business. Retrieved September 2, 2024.
- ^ Lurie, Julia (June 12, 2024). "New Senate report blasts residential treatment facilities that "treat children as payouts"". Mother Jones. Retrieved September 2, 2024.
- ^ Beech, Eric (September 26, 2024). "Acadia Healthcare to pay $19.85 million to settle allegations of improper billing, DOJ says". Reuters. Retrieved October 21, 2024.
- ^ Prentice, Chris (September 9, 2024). "US SEC hits 7 public companies with penalties for violating whistleblower protections". Reuters. Retrieved October 21, 2024.
External links
edit- Business data for Acadia Healthcare: