In a strategic partnership poised to reshape behavioral health care access in Massachusetts, Tufts Medicine has joined forces with Acadia Healthcare Company (Nasdaq: ACHC) to build a new 144-bed behavioral health hospital on the former site of Malden Hospital. This $65 million joint venture is designed to fill critical gaps in care for both adults and children, bringing long-overdue mental health resources to the Greater Boston area. Set to rise from a property that has stood vacant since 1999, this modern behavioral health hospital Massachusetts project represents more than just a building—it is a public health investment, an educational hub, and a reflection of a growing nationwide focus on mental health.
Addressing a Behavioral Health Crisis Decades in the Making
The United States is in the midst of an escalating behavioral health crisis, exacerbated by the COVID-19 pandemic, workforce shortages, and increasing rates of mental health and substance use conditions. Massachusetts, despite being home to some of the nation’s best hospitals, has not been immune.
David Storto, Chief Strategy and Growth Officer at Tufts Medicine, explained that the joint venture was born from a growing demand that could no longer be ignored. “We have seen prior to COVID, and through COVID, just increasing numbers of people that are waiting in emergency departments for beds,” Storto told Behavioral Health Business. “We have, for some time, evaluated different opportunities to use a site that used to have the Malden hospital as a community hospital.”
Behavioral health patients often face long waits in emergency departments due to the lack of appropriate facilities. This project directly targets that problem by creating dedicated inpatient and outpatient resources—especially for pediatric mental health—through the new behavioral health hospital Massachusetts community.
A Lifeline for Children and Families
The new behavioral health hospital Massachusetts will offer pediatric inpatient services, which are particularly urgent in light of troubling national statistics. According to the CDC, one in five children in the U.S. has a behavioral or emotional disorder, but only 20% receive care from a specialized mental health provider. This hospital aims to raise that number by improving access to timely, high-quality care for children and adolescents in the Boston area.
But the services won’t stop there. The facility will also include adult inpatient units and intensive outpatient programs (IOP), ensuring that individuals across age groups and acuity levels have access to the right level of care at the right time.
From Dormant Land to Community Asset
The choice to build on the former Malden Hospital site is both symbolic and strategic. After being shuttered in 1999, the location became a topic of debate for years. While residents expressed concern about the development of any new facility in the residential neighborhood, Tufts and Acadia approached the project with sensitivity and transparency.
“We were very mindful going into it that building a behavioral health facility in a residential community was going to probably result in some level of anxiety,” said Storto. “And so we’ve really started to work very, very closely with the coalition of our public officials.”
That coalition includes Malden’s mayor, state senators, city councilors, and other local leaders, all of whom have helped guide the project forward. Their support reflects a shared understanding of the urgent need for behavioral health services, especially after years of witnessing emergency rooms stretched beyond capacity.
Joint Venture Structure: Blending Local Trust with National Expertise
While Acadia Healthcare will manage the day-to-day operations of the new hospital, Tufts Medicine will retain a minority equity stake. Governance will be shared equally between the two entities, with a 50/50 board structure that allows for shared oversight, strategic alignment, and collaborative decision-making.
This is not new territory for Acadia, which currently operates 238 behavioral health facilities across 40 states and Puerto Rico. In fact, this marks Acadia’s 17th joint venture, reinforcing its strategy of working closely with leading health systems to bring evidence-based mental health and substance use treatment to communities nationwide.
“[Acadia] has a national presence and has a lot of expertise,” Storto explained. “They have another relationship in Massachusetts with Southcoast Health that we were able to spend some time with to really see, touch and feel the experience there. We were very impressed with the physical structure they built, the program there, and the continuity of leadership with the provider staff.”
Acadia’s track record with involuntary treatment programs, broad payer acceptance, and strong MassHealth (Medicaid) integration were also key drivers of the partnership. In a state where Medicaid plays a large role in behavioral health care financing, these capabilities were seen as essential.
Building the Next Generation of Behavioral Health Professionals
Another differentiating feature of the new hospital is its role in medical education. As a teaching hospital affiliated with Tufts University School of Medicine, the facility will provide training for medical students, residents, and future mental health professionals.
This component is crucial in a time when behavioral health workforce shortages are constraining access nationwide. By serving as a teaching and training ground, the new hospital will not only provide care—it will also help develop the workforce needed to sustain long-term behavioral health access.
Timeline and Next Steps
Tufts and Acadia estimate that construction could begin within six months, pending state and local permitting. The first phase will involve demolition of the existing structures on the Malden Hospital site, followed by construction of the new facility.
Community engagement will continue throughout the process, with the joint venture partners committed to maintaining transparency and incorporating local input wherever possible.
A Model for Behavioral Health Partnerships Nationwide
This new behavioral health hospital Massachusetts is a concrete example of how public-private partnerships can be leveraged to meet mental health needs in underserved areas. By combining Tufts’ clinical reputation and community ties with Acadia’s operational expertise and national scale, the joint venture offers a replicable framework for behavioral health infrastructure development across the country.
“As we have proven in operating our joint ventures, we will bring the best practices of both organizations and expand access to quality behavioral healthcare services providing healing and hope to those in need in the surrounding communities,” said Chris Hunter, CEO of Acadia Healthcare. “We will continue to partner with leading health systems to combat the mental health care and substance use crises across our country.”
Looking Ahead
As construction gets underway, the new Tufts-Acadia behavioral health hospital Massachusetts represents a long-awaited step toward mental health parity, provider training, and system-wide relief. It is not just about building beds—it’s about building a system that works, one rooted in access, equity, education, and community collaboration.
For residents of Malden and the Greater Boston area, this hospital could be the first of many steps toward a more responsive and compassionate behavioral health system—one where no child, adult, or family is left waiting for care.
