Acadia Healthcare Company, Inc. ACHC has announced the opening of a behavioral health facility, Tower Behavioral Health, in a joint venture (JV) with Tower Health.
The facility, located at 201 Wellness Way in Reading, PA, will begin accepting patients on Jul 14, 2020.
Tower Behavioral Health will include a general psychiatric unit, offering acute inpatient care for adults aged 18 and above. It will deliver services, such as Partial hospitalization program (PHP), intensive outpatient program, dual diagnosis services, outpatient counseling and Physician services and consultations.
The new health hub will take care of individuals suffering mental health concerns like anxiety disorders, bipolar disorder, post-traumatic stress disorder (PTSD), self-harm and suicidal ideation. After the launch of this facility, a mood-disorder unit for adults will be added.
Additional expansion plans include age-appropriate units for children and adolescents in 2021, which will deal with inpatient psychiatric care.
The behavioral health center will expand the number of inpatient beds available to the Berks County and also enable providers to effectively engage with patients, families and other members of each patient’s support team.
The same will further extend Acadia Healthcare’s reach in the mental health disorder and behavioral healthcare market. Notably, the rising incidence of these disorders led to a spike in behavioral health treatments.
Favorable industry and legislative trends also prompt Acadia Healthcare to deepen its toes in the behavioral market. Per a 2018 survey by the Substance Abuse and Mental Health Services Administration of the U.S. Department of Health and Human Services (SAMHSA), 19.1% of adults in the United States, aged 18 years or above, complained of mental illness in the prior year while 4.6% showed symptoms of a serious mental illness.
Further, approximately 7.8% people — aged 12 years or older — in 2018, required substance use treatment. According to the National Institute of Mental Health, more than 20% of adolescents, either currently or at some point in their life, had a seriously debilitating mental disorder. Management believes that the market for behavioral services will continue to grow due to increased awareness of mental health and substance abuse conditions as well as treatment options.
Acadia Healthcare is a leading behavioral healthcare platform in an industry that is undergoing consolidation in a bid to rein in costs and develop programs to better serve the growing need for inpatient behavioral healthcare services.
Management expects to capitalize on several strategies that are more accessible as a result of the company's magnified size and geographic scale including a continued national marketing tactic to attract patients and referral sources, growing its volume of out-of-state referrals, providing a broader range of services to new and existing patients and clients, and selectively pursuing opportunities to widen its facility and supplement the bed count in the United States.
Greater awareness and a pervasive social acceptance of comporte mental health problems will provide conduct health suppliers with teeming market opportunities. Clinical advances in treatment lent a fresh and an enhanced perspective to both psychological and detoxification treatments. The development of the behavioral health industry is driven by online consulting and day care. Novel approaches to treatments and programmes plus a favorable supply-demand chain are some other variables that are anticipated to bode well for the behavioral healthcare market, aiding the company’s growth in the process.
Acadia Healthcare has gained 11.1% in the past three months against the industry’s decline of 9.9%.
The price performance looks stellar versus other stock movements in the same space including Community Health Systems Inc. CYH, Tenet Healthcare Corporation THC and Universal Health Services Inc. UHS, which have declined 12.7%, 5.3% and 12.6%, respectively, over the same time frame.
The stock carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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