Acadia Healthcare

Last updated

Acadia Healthcare Company, Inc.
Company type Public
Founded2005;19 years ago (2005)
Headquarters Franklin, Tennessee, U.S.
Number of employees
28,600 (2020)
Website acadiahealthcare.com

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]

Contents

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] It also operates, as of 2024, 165 methadone clinic in 33 states, making it the U.S.'s largest methadone-clinic chain. [8]

Acadia was founded as a private corporation in 2005 by Reeve B. Waud and went public in 2011. [3]

Business model

Since 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 Hospital in Michigan, Geisinger Health Systems in Pennsylvania, and the Nebraska Methodist Health System. [3] [9] [10] 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. [11]

Acadia markets directly to individuals with mental health issues, encouraging them to "skip the ER" at their local not-for-profit hospital and come directly to an Acadia facility. [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

United States

Acadia operates facilities for patients with behavioral problems, PTSD, trauma, eating disorders and substance abuse. [12] 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. [13] Also in 2022, it opened a children's hospital in Chicago, a joint venture facility in Knoxville, and two comprehensive treatment centers. As of that year, Academia had a network of 242 behavioral healthcare facilities with approximately 10,800 beds in 39 states and Puerto Rico. [14]

In 2014, Acadia entered the methadone-clinic business when it bought CRC Health, a large-addiction treatment chain, from the private equity firm Bain Capital. [8] [15] Acadia rapidly expanded this business, and by late 2024, it operated 165 methadone clinic in 33 states, making it the U.S.'s largest methadone-clinic chain. [8]

United Kingdom

In 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. [16]

The UK Competition and Markets Authority investigated Academia's acquisition of Priory Group over concerns on its impact on competition. It sold 22 behavioral health facilities for £320 million to BC Partners in October 2016. [17]

In 2019, Acadia paid $17 million to resolve the allegations made by federal prosecutors in West Virginia that the comopany had overbilled Medicaid for blood and urine tests. [8] [18]

Acadia formerly operated, through its subsidiary Youth and Family Centered Services of New Mexico, a facility known as Desert Hills. [19] [20] In 2019, Acadia shut down the facility after revelations of sexual abuse. [20] Acadia ultimately settled five lawsuits arising from abuse at the facility. [20] [19] The included one suit, filed by the guardians of a New Mexico minor, in which a Rio Arriba County, New Mexico jury ordered Acadia to pay $405 million in compensatory and punitive damages; [20] [19] in October 2023, Acadia reached an agreement to settle this case and two others for $400 million, without admitting liability. [19]

In January 2024, the Utah 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. [21] After another series of safety violations in February, licensing officials required Highland to increase oversight to 40 hours per week. [21] In April 2024, Acadia announced plans to close the facility the following month. [22] [23]

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] [24] [25] 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". [24]

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 agreed to pay $19.84 million to settle the U.S. Securities and Exchange Commission (SEC)'s allegations of numerous legal violations, including a false billing for medically unnecessary inpatient services. [26] It also was penalized $1.39 million for preventing whistleblowers from coming forward. [27]

Acadia has actively lobbied against bipartisan proposal in the U.S. Congress to expand access to methadone treatment by allowing opioid use disorder patients to pick up methadone at pharmacies, rather than going to clinics. [8]

In December 2024, the The New York Times published an investigative report, based on 60 interviews with current and former employees at Acadia's methadone facilities, that found that Academia personnel frequently falsified medical records used for billing, and often gave methadone to people who did not have opioid addictions but were dependent on other drugs. The report also found the company's methadone counselors carry large caseloads, sometimes more than twice the limits set by state regulators. [8]

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References

  1. ↑ "Acadia Healthcare Reports First Quarter 2021 Results and Increases 2021 Guidance". www.businesswire.com. April 29, 2021. Retrieved May 19, 2021.
  2. ↑ Larson, Chris (October 31, 2023). "Acadia Healthcare Reaches $400M Settlement for Abuse Litigation". Behavioral Health Business . Retrieved September 2, 2024.
  3. 1 2 3 4 5 6 7 8 9 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.
  4. 1 2 Irwin, Lauren (June 12, 2024). "Children in residential treatment facilities face multiple risks". The Hill .
  5. ↑ Larson, Chris (July 12, 2023). "Acadia Healthcare Faces $405M Judgement in Civil Abuse Case". Behavioral Health Business . Retrieved September 2, 2024.
  6. ↑ 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.
  7. ↑ Wahlberg, David (October 26, 2023). "Work begins on psychiatric hospital on Madison's Far East Side". Wisconsin State Journal . Retrieved September 2, 2024.
  8. 1 2 3 4 5 6 Thomas, Katie; Silver-Greenberg, Jessica (December 7, 2024). "Fraud and Fakery at the Country's Largest Chain of Methadone Clinics". The New York Times . Retrieved December 7, 2024.
  9. ↑ "Acadia Healthcare Forms Joint Venture Partnership With Nebraska Methodist Health System". Business Wire . July 24, 2023.
  10. ↑ Herman, Bob (July 8, 2024). "Pulling back the curtain on psychiatric hospital joint ventures". Stat . Retrieved September 2, 2024.
  11. ↑ Bannow, Tara (July 8, 2024). "Troubled for-profit chains are stealthily operating dozens of psychiatric hospitals under nonprofits' names". Stat . Retrieved September 2, 2024.
  12. ↑ "New psychiatric hospital to provide mental health services". Greenville on line. December 4, 2016. Retrieved December 23, 2016.
  13. ↑ "Acadia Healthcare Taps Walgreens Vet Dr. Nasser Khan to Lead Largest Segment". Behavioral Health Business. September 19, 2022. Retrieved November 7, 2022.
  14. ↑ "CORRECTING and REPLACING Acadia Healthcare Reports Third Quarter 2022 Results". Businesswire. October 31, 2022. Retrieved November 7, 2022.
  15. ↑ Nate Rau, cadia to buy CRC Health, owner of New Life Lodge, The Tennessean (October 29, 2014).
  16. ↑ "Mears Group acquires Care UK's domiciliary care service for £11.3m". HealthInvestor. June 1, 2015. Retrieved June 13, 2015.
  17. ↑ "BC PARTNERS AGREES £320M DEAL FOR 22 PRIORY CLINICS". Insider media. October 21, 2016. Retrieved December 23, 2016.
  18. ↑ "United States Attorney Announces $17 Million Healthcare Fraud Settlement". www.justice.gov. United States Department of Justice, Southern District of West Virginia. May 6, 2019. Retrieved December 8, 2024.
  19. 1 2 3 4 Chris Larson, Acadia Healthcare Reaches $400M Settlement for Abuse Litigation, Behavioral Health Business (October 31, 2023).
  20. 1 2 3 4 Chris Larson, Acadia Healthcare Faces $405M Judgement in Civil Abuse Case, Behavioral Health Business (July 12, 2023).
  21. 1 2 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.
  22. ↑ 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.
  23. ↑ 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.
  24. 1 2 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.
  25. ↑ Lurie, Julia (June 12, 2024). "New Senate report blasts residential treatment facilities that "treat children as payouts"". Mother Jones . Retrieved September 2, 2024.
  26. ↑ 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.
  27. ↑ Prentice, Chris (September 9, 2024). "US SEC hits 7 public companies with penalties for violating whistleblower protections". Reuters. Retrieved October 21, 2024.
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