Acadia Healthcare (ACHC) Inks JV to Better Serve New Hampshire
Acadia Healthcare Company, Inc. ACHC recently inked a joint venture (“JV”) with the New Hampshire-based integrated health system, SolutionHealth, for constructing a behavioral health hospital in the state.
Equipped to house 144 beds, the facility will extend a comprehensive suite of inpatient behavioral healthcare services, which remain much-needed across southeast New Hampshire. Apart from enhancing access to behavioral health services across the region and bringing about improved health outcomes, the other areas of focus of the JV are discussed henceforth.
The partners aim to lower the waiting time for patients at the emergency department for behavioral health triage and disposition. Additionally, they tend to provide an enhanced behavioral health center that can be availed by the targeted region’s patients within close proximity of their homes. New Hampshire Department of Health and Human Services will pay $15 million to support the construction costs of the new hospital.
Thereby, the recent tie-up of Acadia Healthcare can be termed as a time-opportune move owing to the growing incidence of mental health issues among Americans and a significant portion of New Hampshire’s population grappling with such problems. ACHC seems well-poised to capitalize on the unaddressed demand for high-quality behavioral health services throughout the state.
The partnership has made way for Acadia Healthcare to delve into a new state with its acute service line. It also marks the 19th JV partnership of ACHC. In each of these JVs, ACHC has collaborated with well-established healthcare organizations based across different U.S. communities and subsequently integrated the resources, expertise and practices of both partners. This has enabled it to devise a solid behavioral health services portfolio, diversified the treatment network and expanded the nationwide foothold of Acadia Healthcare.
Management remains optimistic about pursuing similar partnerships with leading U.S. health systems in the future to address mental health issues and substance use disorders prevailing throughout the country, which seems commendable.
Acadia Healthcare has numerous JV projects scheduled in its pipeline, which make it optimistic about the year 2023. The one with Michigan-based Bronson Healthcare to construct a freestanding behavioral health facility in the state, which was supposed to commence operations from the third quarter of 2023, has been already inaugurated this June. The planned facility in Pennsylvania as a result of the JV with Geisinger Health is also likely to open this year. As a part of its growth-related initiatives, in addition to JVs, management also aims to add roughly 300 beds to its existing facilities in 2023.
Shares of Acadia Healthcare have risen 11.3% in a year, compared with the industry’s 60.2% growth. Nevertheless, its strong fundamentals are likely to help shares bounce back in the days ahead.
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ACHC currently has a Zacks Rank #4 (Sell).
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