Acadia Healthcare Co. Inc. (Nasdaq: ACHC), a leading U.S. behavioral health provider, is putting joint ventures at the center of its behavioral health growth strategy, aiming to double revenue in the coming years. CEO Chris Hunter and CFO David Duckworth shared these plans at JP Morgan’s Health Care Conference, which also include building de novo facilities and adding beds to existing locations. These efforts follow the company’s ambitious five-year plan outlined at its investor day last December.
Duckworth emphasized that while Acadia has multiple growth initiatives, joint ventures and bed expansions will have the greatest impact. Other planned efforts are considered “incremental” in comparison. Importantly, the company does not rely on acquisitions for growth but will pursue M&A selectively, seeking opportunities that meet ideal return and valuation criteria. “We have a very strong balance sheet,” Duckworth said. “We can be disciplined on M&A, knowing we have different ways of growing. We can compare that against what we can achieve through these other growth pathways.” This disciplined approach is central to Acadia’s behavioral health growth strategy.
Leveraging Technology to Modernize Care
Acadia is also investing heavily in technology to modernize operations and enrich service lines. Hunter highlighted that behavioral health still lags behind other healthcare sectors in digitization, noting the industry’s continued reliance on paper-based systems. “There’s still a real lack of EMRs and analytics in our industry,” he said. By embracing technology, Acadia aims to enhance patient care, improve operational efficiency, and better leverage data—a key pillar of its behavioral health growth strategy.
Technology investment will also support partnerships with hospital systems, improve integration of behavioral and physical health services, and ensure that care delivery aligns with modern standards.
Partnering With Health Systems in a Fragmented Industry
Hunter described the behavioral health sector as “immature” and “fragmented,” presenting significant growth opportunities. Hospital systems are increasingly seeking partnerships to address the post-COVID surge in behavioral health needs. Duckworth explained that while hospitals may have behavioral health units, few have freestanding, therapeutically appropriate facilities. “They have not historically had that state-of-the-art facility to provide treatment,” he said. “That’s what we are building with our partners.”
Acadia plans to collaborate with reputable partners across multiple markets, targeting 100 metropolitan areas where behavioral health beds are currently insufficient. Of the 18 joint venture facilities announced, nine are already open—an early indicator of the company’s ability to execute its behavioral health growth strategy.
Same-Facility Expansion: High-Return Opportunities
Beyond joint ventures, Acadia sees strong potential in expanding existing facilities. Duckworth noted that leveraging existing infrastructure, local knowledge, and established relationships creates one of the highest-return opportunities for the company. “This is the highest return opportunity for the company because we do have an existing operation that we’re able to leverage,” he said.
This approach strengthens community ties, improves patient retention, and ensures operational consistency—key components of a long-term behavioral health growth strategy.
Addressing the U.S. Psychiatric Bed Shortage
Acadia’s expansion comes amid a nationwide psychiatric bed shortage. Medicaid restrictions and the closure of state psychiatric hospitals have left significant gaps in care. Investors, developers, and healthcare REITs are stepping in to fill this void, providing capital and expertise to develop modern behavioral health facilities.
By combining joint ventures, de novo construction, bed expansion, and technology investment, Acadia positions itself to meet the growing demand for behavioral health services while delivering strong returns. This multi-pronged approach is central to the company’s behavioral health growth strategy and reflects its commitment to sustainable, high-quality care.
Looking Ahead
With 100 potential markets identified for expansion, ongoing partnerships with hospital systems, and a robust pipeline of joint venture and same-facility projects, Acadia Healthcare is shaping the future of behavioral health care. By leveraging multiple growth pathways and technology, the company is executing a disciplined and forward-looking behavioral health growth strategy that balances financial prudence with patient-centered expansion.
As the behavioral health industry continues to evolve, Acadia’s focus on partnerships, technology, and facility expansion positions it for long-term success. This comprehensive behavioral health growth strategy ensures the company can meet rising demand, address systemic gaps, and create sustainable revenue growth while maintaining high standards of care.
