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Acadia Healthcare (ACHC) Expands With New Hospital in Michigan

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Acadia Healthcare Company, Inc. (ACHC - Free Report) recently announced the opening of its new hospital Bronson Behavioral Health Hospital in Battle Creek, MI. This project resulted from a joint venture between Acadia Healthcare and Bronson Healthcare.

Equipped to house 96 beds, the new hospital will extend a comprehensive suite of inpatient behavioral healthcare services and outpatient programs to provide enhanced treatment to adults with mental health disorders and developmental disabilities. This hospital is expected to provide excellent behavioral healthcare services for the Southwest Michigan and Battle Creek communities.

The partnership reflects one of the longstanding endeavors of Acadia Healthcare to address the nationwide shortage of mental health resources by delving deeper into several underserved U.S. regions. Such initiatives are also likely to solidify the trust among individuals who require ACHC’s facilities and fetch greater revenues for the behavioral healthcare services provider.

Acadia Healthcare is focused on tapping the underserved markets worth $100 billion for complex mental health and substance use. Mental health and substance use markets are expected to grow due to increasing mental health awareness and increased need for additional beds to serve patients’ needs.

Acadia Healthcare often depends on buyouts or joint ventures (JVs) with renowned U.S. health systems for inaugurating new hospitals or expanding existing facilities through bed additions. Through these expansion initiatives, the company aims to achieve EBITDA growth of 10% and 10-12% for 2023 and 2024-28, respectively. It aims to add roughly 300 beds to its existing facilities and open two inpatients de novo facilities, two JV facilities and a minimum of six comprehensive treatment centers this year.

Shares of Acadia Healthcare have rallied 2.3% in the past month compared with the industry’s 3.9% growth.

Zacks Investment Research
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Zacks Rank & Key Picks

Acadia Healthcare currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Medical space include Ligand Pharmaceuticals , Masimo Corporation (MASI - Free Report) and Alcon Inc (ALC - Free Report) . Ligand Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy), while Masimo and Alcon carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand Pharmaceuticals’ earnings surpassed estimates in two of the last four quarters and missed the mark twice, the average surprise being 21.50%. The Zacks Consensus Estimate for LGND’s 2023 earnings indicates a rise of 9.6% from the year-ago actuals. The consensus mark for LGND’s 2023 earnings has moved 9.6% north in the past 30 days.

The bottom line of Masimo beat estimates in each of the trailing four quarters, the average beat being 10%. The Zacks Consensus Estimate for MASI’s 2023 earnings indicates a rise of 3.7%, while the same for revenues suggests an improvement of 19.7% from the respective prior-year tallies. The consensus mark for MASI’s 2023 earnings has moved 0.2% north in the past 60 days.

Alcon’s earnings surpassed estimates in three of the last four quarters and met the mark once, the average surprise being 8.9%. The Zacks Consensus Estimate for ALC’s 2023 earnings indicates a rise of 17.9% from the year-ago actuals. The consensus mark for ALC’s 2023 earnings has moved 0.4% north in the past 30 days.


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