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Acadia Healthcare (ACHC) Opens Facility to Serve California

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Acadia Healthcare Company, Inc. (ACHC - Free Report) recently inaugurated an acute care hospital in the Indio city of California. Named Coachella Valley Behavioral Health, the facility is equipped with 80 beds and was opened within the targeted period of 2023 end. Once the hospital concludes its final preparations to become fully operational, admissions of patients are expected to commence.

The newly-opened facility will provide a comprehensive suite of inpatient and outpatient behavioral healthcare services for treating the adult, older adult and pediatric patient populace grappling with severe symptoms of general mood disorders, thought disorders and dual diagnosis or substance use disorders. This will be made possible by the presence of a well-versed medical team at the facility plus the support of community health partners across Indio and neighboring communities, which will equip Acadia Healthcare to gain an in-depth understanding of the needs of the targeted region.  

With increased access to enhanced behavioral healthcare services, patients across the greater Riverside County area are likely to breathe a sigh of relief. The establishment of the hospital across a region that suffers from inadequate access to high-quality behavioral healthcare services seems to be a time-opportune move on the part of Acadia Healthcare. The Riverside County area is expected to have a shortage of roughly 1,200 behavioral health beds, which highlights the importance of the new facility to the region’s patients.

Coachella Valley Behavioral Health also stands as the first freestanding behavioral health hospital in the region. Therefore, the latest move is expected to provide an opportunity for ACHC to establish a solid footprint across the Riverside County area and broadly, in the state of California. It remains committed to serving more of California communities by boosting access to behavioral health treatment programs.

In this manner, Acadia Healthcare intends to complement one of its longstanding endeavors of addressing the nationwide concern of growing mental health issues among Americans. An expanding behavioral healthcare facility portfolio as a result of moves similar to the latest one implies greater patient volumes, thereby making the way for increased usage of ACHC’s services. This, in turn, may fetch higher revenues to the behavioral healthcare services provider.  

Acadia Healthcare makes efforts to upgrade its services portfolio and add beds to its existing facilities as a means to boost its revenue base. It also takes the help of renowned U.S. health systems to construct behavioral health hospitals. ACHC’s healthcare portfolio comprised 253 behavioral healthcare facilities across 39 states and Puerto Rico as of Sep 30, 2023. It remains on track to add roughly 300 beds to its existing facilities as well as inaugurate two inpatient de novo hospitals and a minimum of six comprehensive treatment centers this year. Management remains optimistic about ample growth opportunities in 2024.

Shares of Acadia Healthcare have rallied 5.7% in the past six months against the industry’s 5.5% decline. ACHC currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks in the Medical space are IRadimed Corporation (IRMD - Free Report) , Penumbra, Inc. (PEN - Free Report) and Medpace Holdings, Inc. (MEDP - Free Report) . While IRadimed sports a Zacks Rank #1 (Strong Buy), Penumbra and Medpace carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

IRadimed’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 11.67%. The Zacks Consensus Estimate for IRMD’s 2023 earnings suggests an improvement of 36.4% from the prior-year reported figure. The consensus mark for revenues indicates growth of 22.5% from the prior-year figure.

The Zacks Consensus Estimate for IRMD’s 2023 earnings has moved 7.9% north in the past 60 days. Shares of IRadimed have declined 10.1% in the past six months.

Penumbra’s earnings surpassed estimates in each of the last four quarters, the average surprise being 55.65%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $2.04 per share, which indicates a nearly 13-fold increase from the year-ago reported figure. The consensus mark for revenues suggests an improvement of 25.3% from the year-ago figure.

The consensus mark for PEN’s 2023 earnings has moved 2.5% north in the past 30 days. Shares of Penumbra have lost 25% in the past six months.

Medpace’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 14.62%. The Zacks Consensus Estimate for MEDP’s 2023 earnings indicates an 18.8% rise from the prior-year figure. The consensus mark for revenues suggests an improvement of 29.4% from the prior-year figure.

The consensus mark for MEDP’s 2023 earnings has moved up 3.1% in the past 60 days.  Shares of Medpace have gained 34.4% in the past six months.

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