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Acadia (ACHC) & Orlando Health Form JV, Boosts Presence

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Acadia Healthcare Company, Inc. (ACHC - Free Report) recently announced that the company has formed a joint venture (JV) with a not-for-profit healthcare organization Orlando Health, based in Florida. The move is expected to boost Acadia Healthcare’s footprint in the southeastern United States.

The JV will enable Orlando Health to enhance its inpatient and outpatient programs. Acadia Healthcare is likely to play a crucial role in boosting community outreach activities and improving patient experience. Also, the JV is likely to develop new thorough psychiatric strategies to address more patients. Per the deal, Acadia Healthcare is expected to take on Orlando Health South Seminole Hospital’s management responsibilities of the behavioral health program.

Orlando, FL is a fast-growing city in the country, where demand for the JV’s critical services is expected to ramp up. With Acadia Healthcare’s huge network and comprehensive services, the JV is expected to cater to the rising behavioral health needs in the communities. The deal with Orlando Health marks Acadia Healthcare’s 14th partnership, reflecting its focus on expanding its capabilities in the United States.

Acadia Healthcare is actively pursuing JVs with renowned healthcare systems, which is helping the company to expand its capabilities through bed additions. The healthcare provider has a robust pipeline of JV projects, which are yet to be completed. This makes the company optimistic about the year 2022, which is likely to be its strongest year with respect to JVs as four or five facilities are expected to commence operations.

In a similar move, last month, Acadia Healthcare entered into a JV with California’s renowned integrated healthcare system, Scripps Health, for operating an inpatient behavioral health hospital in the Eastlake community of Chula Vista. The hospital will house 120 beds and a speciality unit, which will cater to the behavioral health treatment of active-duty military and veterans.

Zacks Rank and Stocks to Consider

Acadia Healthcare currently has a Zacks Rank #3 (Hold). Some better-ranked players in the medical space include Co-Diagnostics, Inc. (CODX - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Harrow Health, Inc. (HROW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Salt Lake City, UT-based Co-Diagnostics provides a wide range of testing services to customers. Its joint venture CoSara in India is likely to have boosted its addressable market size. Also, Co-Diagnostics’ Logix Smart™ ABC test received a green signal from the Mexican watchdogs. Deals like these will keep strengthening its client base around the world. The molecular diagnostics company’s bottom line for 2021 has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. During this time period, its earnings estimates have risen 17.9%. CODX beat earnings estimates thrice in the last four quarters and missed once, the average surprise being 35.6%.

Headquartered in Draper, UT, HealthEquity is engaged in a series of buyouts and collaborations over the past few months. The company, in April, entered into a definitive agreement with Fifth Third Bank, National Association to transition custodianship of Fifth Third’s Health Savings Accounts portfolio to HealthEquity. HQY’s bottom line for current year has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. The company beat earnings estimates in each of the past four quarters, the average surprise being 13.3%.

Based in San Diego, CA, Harrow Health is an ophthalmic-focused healthcare firm. Its recent acquisitions of ophthalmic surgical drug candidates from Sintetica and Wakamoto Pharmaceutical are major positives. Moves like these are likely to bolster Harrow Health’s commercial success in the U.S. and Canadian markets. Its bottom line for 2021 is expected to soar 346.2% year over year. It has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. HROW beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 38%.

Price Performances

Acadia Healthcare shares increased 6.9% in the year-to-date period, compared with 24.3% rise of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

During this time period, stocks of Co-Diagnostics, HealthEquity declined 1.4% and 21.9%, respectively, while Harrow Health rose 45.3%.