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Acadia Healthcare (ACHC) JV to Build Behavioral Health Hospital

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Acadia Healthcare Company, Inc. ACHC recently inked a joint venture (“JV”) with one of the most well-established integrated health systems of Massachusetts — comprising dedicated care team members of more than 15,000 — Tufts Medicine. The JV revolves around plans to construct a new behavioral health hospital at the plot where the former Malden Hospital of Massachusetts was located.

Equipped to house 144 beds, the new hospital primarily intends to extend upgraded inpatient behavioral healthcare and intensive outpatient programs for relieving patients and their families across Boston, MA, and neighboring communities. Meanwhile, the hospital will also play the role of a teaching facility, wherein students and residents from the Tufts University School of Medicine will be trained. To complement the endeavor of delivering high-quality behavioral health resources in Boston, the partners will pursue more than $65 million investments across the city.

Meant to cater to patients of all ages, the JV hospital tends to address the dire need for behavioral healthcare services in Boston. Therefore, ACHC seems well-poised to capitalize on the prevailing scenario with its credible behavioral healthcare services portfolio.

With the hospital based in Massachusetts, the latest partnership is expected to strengthen the presence of Acadia Healthcare across the state. Moreover, Tufts Medicine seems to be the apt partner for aiding ACHC in serving the state since the hospitals of Tufts Medicine (MelroseWakefield Hospital and Lawrence Memorial Hospital) boast a solid track record of delivering effective inpatient behavioral healthcare to the communities served by them for quite a long time.

The recent JV denotes yet another effort of Acadia Healthcare, wherein it has joined forces with renowned healthcare organizations and subsequently integrated the resources, expertise and practices of both partners. Management remains optimistic about pursuing similar partnerships with leading U.S. health systems in the future to address mental health issues and substance use crises prevailing throughout the country, which seems commendable. The continued incidence of mental health issues among Americans necessitates the need for convenient and improved behavioral healthcare services.

The JV with Tufts Medicine denotes the 17th JV partnership of Acadia Healthcare and the first one inked by the behavioral healthcare services provider since the beginning of this year. The 16th JV partnership of ACHC took place last year in December with Fairview Health Services for building a new inpatient mental health and addiction facility for delivering improved behavioral healthcare services throughout the Twin Cities region. Acadia Healthcare has numerous JV projects scheduled in its pipeline, and 2022 is likely to be the strongest year for the company with respect to JVs. These prudent initiatives have expanded facilities and diversified the treatment network and the national foothold of ACHC.

Shares of Acadia Healthcare have risen 11.4% year to date (“YTD”) against the industry’s decline of 29.8%. ACHC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Apart from Acadia Healthcare, healthcare providers like HCA Healthcare, Inc. HCA, Universal Health Services, Inc. UHS and Humana Inc. HUM offer high-quality behavioral healthcare services and can capitalize on the robust demand for these services.

HCA Healthcare operates as one of the top-notch U.S. acute care psychiatric providers. Behavioral healthcare services remain one of the fastest-growing business lines within HCA. HCA Healthcare continues to team up with hospital affiliates for the enhanced management of behavioral healthcare services.

Universal Health Services leverages clinical resources and geographic presence for entering into mutually beneficial collaborations with other healthcare systems. This has helped UHS deliver enhanced and affordable behavioral healthcare services, which, in turn, have led to improved patient outcomes.

Humana pursues an integrated approach of catering to the behavioral, physical and pharmacy needs of people. HUM follows a holistic approach to behavioral healthcare and offers web-based health coaching, thereby resulting in better outcomes and reduced costs for members and employers. For further complementing this endeavor, Humana has been either launching clinical solutions or collaborating with well-established healthcare providers.

Humana stock has inched up 0.9% YTD, while the shares of HCA Healthcare and Universal Health Services have dropped 34.6% and 22.3%, respectively, in the same period.


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