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Acadia (ACHC) Buys CTCs to Boost Care Access in North Carolina
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Acadia Healthcare Company, Inc. (ACHC - Free Report) recently closed the buyouts of three comprehensive treatment centers (“CTC”) across North Carolina. Post the acquisition, the facilities are rebranded as Raleigh Comprehensive Treatment Center, Greenville Comprehensive Treatment Center and Hillsborough Comprehensive Treatment Center.
Each of these CTCs is equipped to offer medication-assisted treatment programs, integral to which behavioral therapy and other support services are fused with medication to cater to patients addicted to opioids. For providing behavioral therapies, the facilities take the help of a diversified range of treatment models comprising individual and group therapy, intensive outpatient, partial hospitalization or day treatment, the road to recovery and other programs.
In addition to the prescription of medicines, the CTCs offer extensive assistance in the form of counseling, vocational, educational and other treatment services. Therefore, the newly acquired facilities are expected to provide improved access to care and bring about enhanced health outcomes across the Raleigh, Greenville and Hillsborough regions of North Carolina.
The recent announcement is likely to boost the CTC footprint of Acadia Healthcare in North Carolina, with the current count being 10 across the state. ACHC operates 160 such locations spread across 32 U.S. states. The continued incidence of opioid use disorders nationwide may sustain the solid demand for ACHC’s CTCs in the days ahead.
The decision to delve deeper into North Carolina through the opening of additional sites of care reflects the keen eye that Acadia Healthcare has on the state. It continues a partnership with the University of North Carolina’s Center for the Business of Health, under which an analysis of treatment gaps in the state was carried out. As a result, the regions of the acquired facilities were marked as potential areas for expansion of CTCs, thereby substantiating the reason behind ACHC’s recent move.
Such initiatives are expected to impart higher revenues to Acadia Healthcare from its CTCs and subsequently, contribute to the overall top line of the behavioral healthcare services provider. Revenues from CTCs amounted to $500.2 million (up 19.1% year over year) in 2023 and therefore, accounted for 17% of the overall top line. It inaugurated six CTCs in 2023 and plans to open a maximum of 14 CTCs in 2024, thereby underlining the active CTC expansion strategy that ACHC expects to embark on throughout this year.
Acadia Healthcare also undertakes joint ventures with U.S. health systems for inaugurating new hospitals or adding beds to existing facilities. It aims to add roughly 800 beds via the opening of wholly-owned and joint venture facilities in 2024.
Shares of Acadia Healthcare have rallied 8.9% in the past six months compared with the industry’s 36.1% growth.
HCA Healthcare’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the mark once, the average beat being 9.78%. The Zacks Consensus Estimate for HCA’s 2024 earnings suggests an improvement of 7.8% while the consensus mark for revenues indicates growth of 6.2% from the respective 2023 reported figures.
The Zacks Consensus Estimate for HCA’s 2024 earnings has moved 4.9% north in the past 60 days. Shares of HCA Healthcare have rallied 33.5% in the past six months.
Insulet’s earnings surpassed estimates in each of the last four quarters, the average surprise being 100.09%. The Zacks Consensus Estimate for PODD’s 2024 earnings indicates a 12% rise, while the consensus mark for revenues suggests an improvement of 15.7% from the respective 2023 reported figures.
The consensus mark for PODD’s 2024 earnings has moved 1.7% north in the past 30 days. Shares of Insulet have gained 1.7% in the past six months.
Addus HomeCare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.52%. The Zacks Consensus Estimate for ADUS’ 2024 earnings indicates an 6.1% rise, while the consensus mark for revenues suggests an improvement of 7.9% from the respective 2023 reported figures.
The consensus mark for ADUS’ 2024 earnings has moved up 2.5% in the past 60 days. Shares of Addus HomeCare have rallied 22.5% in the past six months.
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Acadia (ACHC) Buys CTCs to Boost Care Access in North Carolina
Acadia Healthcare Company, Inc. (ACHC - Free Report) recently closed the buyouts of three comprehensive treatment centers (“CTC”) across North Carolina. Post the acquisition, the facilities are rebranded as Raleigh Comprehensive Treatment Center, Greenville Comprehensive Treatment Center and Hillsborough Comprehensive Treatment Center.
Each of these CTCs is equipped to offer medication-assisted treatment programs, integral to which behavioral therapy and other support services are fused with medication to cater to patients addicted to opioids. For providing behavioral therapies, the facilities take the help of a diversified range of treatment models comprising individual and group therapy, intensive outpatient, partial hospitalization or day treatment, the road to recovery and other programs.
In addition to the prescription of medicines, the CTCs offer extensive assistance in the form of counseling, vocational, educational and other treatment services. Therefore, the newly acquired facilities are expected to provide improved access to care and bring about enhanced health outcomes across the Raleigh, Greenville and Hillsborough regions of North Carolina.
The recent announcement is likely to boost the CTC footprint of Acadia Healthcare in North Carolina, with the current count being 10 across the state. ACHC operates 160 such locations spread across 32 U.S. states. The continued incidence of opioid use disorders nationwide may sustain the solid demand for ACHC’s CTCs in the days ahead.
The decision to delve deeper into North Carolina through the opening of additional sites of care reflects the keen eye that Acadia Healthcare has on the state. It continues a partnership with the University of North Carolina’s Center for the Business of Health, under which an analysis of treatment gaps in the state was carried out. As a result, the regions of the acquired facilities were marked as potential areas for expansion of CTCs, thereby substantiating the reason behind ACHC’s recent move.
Such initiatives are expected to impart higher revenues to Acadia Healthcare from its CTCs and subsequently, contribute to the overall top line of the behavioral healthcare services provider. Revenues from CTCs amounted to $500.2 million (up 19.1% year over year) in 2023 and therefore, accounted for 17% of the overall top line. It inaugurated six CTCs in 2023 and plans to open a maximum of 14 CTCs in 2024, thereby underlining the active CTC expansion strategy that ACHC expects to embark on throughout this year.
Acadia Healthcare also undertakes joint ventures with U.S. health systems for inaugurating new hospitals or adding beds to existing facilities. It aims to add roughly 800 beds via the opening of wholly-owned and joint venture facilities in 2024.
Shares of Acadia Healthcare have rallied 8.9% in the past six months compared with the industry’s 36.1% growth.
Image Source: Zacks Investment Research
ACHC currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the Medical space are HCA Healthcare, Inc. (HCA - Free Report) , Insulet Corporation (PODD - Free Report) and Addus HomeCare Corporation (ADUS - Free Report) . While HCA Healthcare sports a Zacks Rank #1 (Strong Buy), Insulet and Addus HomeCare carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HCA Healthcare’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the mark once, the average beat being 9.78%. The Zacks Consensus Estimate for HCA’s 2024 earnings suggests an improvement of 7.8% while the consensus mark for revenues indicates growth of 6.2% from the respective 2023 reported figures.
The Zacks Consensus Estimate for HCA’s 2024 earnings has moved 4.9% north in the past 60 days. Shares of HCA Healthcare have rallied 33.5% in the past six months.
Insulet’s earnings surpassed estimates in each of the last four quarters, the average surprise being 100.09%. The Zacks Consensus Estimate for PODD’s 2024 earnings indicates a 12% rise, while the consensus mark for revenues suggests an improvement of 15.7% from the respective 2023 reported figures.
The consensus mark for PODD’s 2024 earnings has moved 1.7% north in the past 30 days. Shares of Insulet have gained 1.7% in the past six months.
Addus HomeCare’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.52%. The Zacks Consensus Estimate for ADUS’ 2024 earnings indicates an 6.1% rise, while the consensus mark for revenues suggests an improvement of 7.9% from the respective 2023 reported figures.
The consensus mark for ADUS’ 2024 earnings has moved up 2.5% in the past 60 days. Shares of Addus HomeCare have rallied 22.5% in the past six months.