Acadia Healthcare Company Inc. (Nasdaq: ACHC) is leading the charge in healthcare technology innovation, using advanced solutions to transform the behavioral health landscape. With 250 facilities across the United States, the company is addressing critical challenges in care coordination and payer negotiations through healthcare technology innovation. At the TD Cowen Group’s 43rd Annual Health Care Conference, CEO Chris Hunter outlined how investments in electronic health records (EMR), patient tracking systems, and remote monitoring will drive value in two key areas: improving internal referral practices and strengthening payer relationships with robust outcomes data. These efforts are central to Acadia’s goal of doubling its revenue by 2028, positioning it as a pioneer in healthcare technology innovation for behavioral health.
Revolutionizing Internal Referrals with Healthcare Technology Innovation
Acadia operates four divisions: acute inpatient treatment, specialty treatment, residential treatment, and comprehensive treatment centers (CTCs). The CTC division, with 151 outpatient facilities offering medication-assisted treatment (MAT) and wraparound services, contributed $418 million (22%) to Acadia’s 2022 revenue, while acute inpatient facilities led with $1.33 billion (51%), per financial disclosures. Despite its extensive network, less than 1% of patient referrals occur within Acadia’s ecosystem, a gap Hunter attributes to insufficient healthcare technology innovation in patient tracking.
“We have so many patients with co-occurring conditions,” Hunter said. “We just haven’t been intentional about helping them step into another line of care.” For example, 70% of patients in specialty facilities have an opioid use disorder (OUD) diagnosis, making them ideal candidates for CTC referrals. Patients in acute inpatient facilities, with an average 10-day stay, could also transition to specialty or residential programs. The lack of healthcare technology innovation, such as advanced EMR systems, has limited Acadia’s ability to coordinate care across divisions. By investing in healthcare technology innovation, Acadia aims to streamline referrals, ensuring patients receive continuous care while increasing operational efficiency and revenue.
Strengthening Payer Negotiations Through Data-Driven Healthcare Technology Innovation
Acadia’s focus on healthcare technology innovation extends to its payer relationships, particularly as the industry moves toward value-based care. Hunter, a former Humana Inc. (NYSE: HUM) executive, stressed that proving superior health outcomes is essential for securing favorable contracts. “We will get to a point where we can compete on the strength of our health outcomes,” he said. “We need to show payers our data and prove our outcomes are better than competitors’.” Healthcare technology in data analytics and outcomes tracking will enable Acadia to present compelling evidence of care quality, enhancing its negotiating position.
While not all payers are ready for alternative payment models, some are exploring shared savings or upside-only arrangements tied to outcomes. Acadia’s investment in healthcare technology innovation ensures it can collect and analyze data to support these models, though Hunter noted that capitation or downside-bearing contracts are not imminent. By leveraging healthcare technology innovation, Acadia is preparing for a value-based future, aligning with industry trends and bolstering its reputation as a provider of high-quality care.
Healthcare Technology as a Catalyst for Growth
Acadia’s vision for healthcare technology is integral to its goal of doubling revenue by 2028. Beyond EMR, the company is exploring remote monitoring tools and other technologies to enhance patient care and operational efficiency. These advancements will support Acadia’s growth strategies, including facility expansions and joint ventures with premier health systems in underserved markets. Hunter highlighted the potential for mergers and acquisitions (M&A) in a weakened economy, where lower valuations could facilitate strategic growth. However, Acadia prioritizes organic expansion and partnerships in “under bedded” metros to meet rising demand for behavioral health services.
Setting a New Standard for Behavioral Health
Acadia’s embrace of healthcare technology is about more than internal improvements—it’s about transforming the behavioral health industry. Historically challenged by fragmentation and limited data capabilities, the sector stands to benefit from Acadia’s leadership. “We committed to investing heavily in technology—not just in EMR, but also remote monitoring and other things that will catapult our company and hopefully bring the industry along,” Hunter said. By integrating healthcare technology innovation into care delivery, Acadia aims to improve outcomes for patients with complex needs, such as co-occurring mental health and substance use disorders.
Challenges and Opportunities
Implementing healthcare technology innovation on this scale presents challenges. The behavioral health industry’s underinvestment in technology requires Acadia to navigate a steep learning curve. Additionally, the shift to value-based care depends on payer readiness, which may evolve gradually. However, Acadia’s proactive approach positions it to capitalize on growing demand for behavioral health services, driven by rising mental health and substance use challenges. Strategic partnerships with health systems further mitigate risks, enabling sustainable growth through healthcare technology.
Conclusion: A Transformative Vision
Acadia Healthcare’s commitment to healthcare technology is paving the way for a more integrated, outcomes-driven behavioral health ecosystem. By enhancing internal referrals, strengthening payer negotiations, and aligning with industry trends, Acadia is poised to achieve its revenue goals while setting a new standard for care. As the company continues to invest in healthcare technology innovation, it is not only transforming its operations but also leading the charge for a brighter future in behavioral health.
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