Acadia Healthcare (ACHC) Expands With New Hospital in Michigan
Acadia Healthcare Company, Inc. ACHC recently announced the opening of its new hospital Bronson Behavioral Health Hospital in Battle Creek, MI. This project resulted from a joint venture between Acadia Healthcare and Bronson Healthcare.
Equipped to house 96 beds, the new hospital will extend a comprehensive suite of inpatient behavioral healthcare services and outpatient programs to provide enhanced treatment to adults with mental health disorders and developmental disabilities. This hospital is expected to provide excellent behavioral healthcare services for the Southwest Michigan and Battle Creek communities.
The partnership reflects one of the longstanding endeavors of Acadia Healthcare to address the nationwide shortage of mental health resources by delving deeper into several underserved U.S. regions. Such initiatives are also likely to solidify the trust among individuals who require ACHC’s facilities and fetch greater revenues for the behavioral healthcare services provider.
Acadia Healthcare is focused on tapping the underserved markets worth $100 billion for complex mental health and substance use. Mental health and substance use markets are expected to grow due to increasing mental health awareness and increased need for additional beds to serve patients’ needs.
Acadia Healthcare often depends on buyouts or joint ventures (JVs) with renowned U.S. health systems for inaugurating new hospitals or expanding existing facilities through bed additions. Through these expansion initiatives, the company aims to achieve EBITDA growth of 10% and 10-12% for 2023 and 2024-28, respectively. It aims to add roughly 300 beds to its existing facilities and open two inpatients de novo facilities, two JV facilities and a minimum of six comprehensive treatment centers this year.
Shares of Acadia Healthcare have rallied 2.3% in the past month compared with the industry’s 3.9% growth.
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Zacks Rank & Key Picks
Acadia Healthcare currently carries a Zacks Rank #3 (Hold).
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