Brentwood, Tennessee-based Lifepoint Health has expanded its behavioral health portfolio through a significant behavioral health hospital acquisition, acquiring Cornerstone Behavioral Health El Dorado, a Tucson, Arizona-based facility. While the terms of the deal were not disclosed, this move highlights Lifepoint’s commitment to strengthening access to behavioral health services nationwide. Lifepoint Health has yet to provide further comment on the acquisition.
Cornerstone Facility and Expansion Plans
Cornerstone Behavioral Health El Dorado currently operates 54 beds and employs roughly 100 staff members, offering critical behavioral health services to its local community. As part of the acquisition, Lifepoint Health plans to add 50 additional beds, increasing capacity and improving access to care. This expansion is part of Lifepoint’s broader Lifepoint Behavioral Health initiative, which already manages over 35 behavioral health units in partner hospitals and three standalone inpatient behavioral health hospitals. This behavioral health hospital acquisition positions Lifepoint to meet rising demand for mental health services while supporting local communities.
Lifepoint Statement on the Acquisition
“Together, we have opportunities not only to further strengthen the care that Cornerstone Behavioral Health El Dorado provides its communities but also to expand behavioral healthcare access to these vital services across our nation,” said Russ Bailey, President of Lifepoint Behavioral Health, in a news release. This reflects Lifepoint Health’s strategy of using behavioral health hospital acquisitions to expand both reach and capacity.
Related Acquisition by ScionHealth
In a related deal, Louisville-based ScionHealth acquired Cornerstone Behavioral Health El Dorado’s parent company, Cornerstone Healthcare Group. Headquartered in Dallas, Texas, the group operates 15 specialty hospitals and eight senior living locations, employing approximately 3,000 staff members. Both acquisitions demonstrate the growing trend of consolidation in healthcare, particularly for behavioral health facilities, as operators seek to enhance access, efficiency, and quality of care.
Behavioral Health Bed Shortage in the U.S.
The U.S. continues to face a shortage of psychiatric beds amid growing behavioral health needs. According to the American Hospital Association (AHA), there were 645 specialty behavioral health hospitals in 2020, representing 11% of all hospitals. Nearly half of these hospitals are investor-owned, and 60 new behavioral health hospitals were built between 2016 and 2020. This shortage has made behavioral health hospital acquisitions a critical strategy for operators seeking to expand capacity and meet patient demand.
Lifepoint’s Broader Strategy
Lifepoint Health’s focus on behavioral health hospital acquisitions complements its broader healthcare portfolio, which includes 62 community hospital campuses, 27 rehabilitation facilities, and over 170 additional care sites across 28 states. While the company traditionally focuses on acute and post-acute care, integrating behavioral health facilities allows Lifepoint to provide more comprehensive care to patients and communities.
Industry Trends in Behavioral Health Expansion
Industry leaders are increasingly pursuing similar strategies. Acadia Healthcare Co. has emphasized joint ventures for new hospital developments, while Universal Health Services (UHS) is integrating acute care hospitals with behavioral health facilities to create operational synergies. Lifepoint Health’s acquisition of Cornerstone Behavioral Health El Dorado demonstrates how a behavioral health hospital acquisition can strengthen community services while supporting long-term growth.
Conclusion
The behavioral health hospital acquisition of Cornerstone Behavioral Health El Dorado positions Lifepoint Health to better serve patients, expand capacity, and meet growing demand for behavioral health services. As mental health needs continue to rise across the country, strategic acquisitions like this are critical for ensuring that high-quality, accessible care reaches communities that need it most.
