Acadia Healthcare Company, Inc. (ACHC - Free Report) along with Knoxville-based Covenant Health announced their joint venture East Tennessee Behavioral Health, which is a new inpatient behavioral health hospital. This hospital will cater to patients in the Knoxville and its surrounding area. The companies organized an event wherein speakers addressed the evolving requirements for mental health services.
East Tennesse Behavioral Health will be built in West Knoxville and is expected to open in the fall of 2021.
Online attendees of the event were able to see the site of the hospital, which will provide services to people facing behavioral health issues.
Rationale Behind the Launch
The hospital is expected to meet the growing need for behavioral health services. This new place is likely to eradicate the shortage of services by providing high-quality, mental health care.
Treatments will cater to adults and adolescents who suffer anxiety, depression, bipolar disorder, post-traumatic stress disorder (PTSD) and substance abuse.
The fact that the company launched this hospital for patients bodes well, particularly at a time when individuals are restricted to their homes due to stringent social-distancing measures on account of the COVID-19 crisis. The need for mental healthcare services will likely increase due to the pandemic.
Other Initiatives of the Company
The move is in line with Acadia Healthcare’s commitment to meet mental healthcare services of several communities. Millions of people suffer behavioral health issues in the United States.
The company is also making opportunistic acquisitions to expand in the behavioral healthcare industry in the United States. To this end, in 2019, it completed the buyouts of Bradford Recovery Center, a specialty treatment facility, and Whittier Pavilion, an inpatient psychiatric facility. In July, the company announced the opening of a behavioral health facility, Tower Behavioral Health, which will further extend the company’s reach in the mental health disorder and behavioral healthcare market.
Recently, Acadia Healthcare collaborated with Covenant Health, which offers a diverse range of healthcare services in Tennessee. This tie-up intends to solve mental health issues, which remain largely unaddressed due to the dearth of resources in East Tennessee. The partnership involves building a new behavioral health hospital, construction of which is likely to start in late 2020.
All these initiatives poise the company well for growth.
Zacks Rank and Price Performance
Shares of this currently Zacks Rank #3 (Hold) company have gained 19.2% in a year’s time, outperforming its industry’s increase of 5.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other companies in the same line, such as HCA Healthcare Inc. (HCA - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Community Health Systems Inc. (CYH - Free Report) have rallied 14.6%, 42% and 94.8%, respectively, in the same time frame.
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