In a significant development for the behavioral healthcare sector, Franklin, Tennessee-based Acadia Healthcare stands at a pivotal moment in its 19-year history. The company has undertaken its most extensive bed expansion yet, adding 1,300 new beds in 2024, with another 1,200 beds currently under construction.
During a recent presentation at the J.P. Morgan Healthcare Conference, Acadia Healthcare CFO Heather Dixon outlined how this growth phase will shape the company’s financial trajectory through 2026. While startup costs are expected to double in 2025 compared to 2024, Dixon sees this as a strategic investment that will yield substantial returns.
“Looking ahead to 2026 and beyond, we anticipate significant financial benefits from our bed additions,” Dixon explained during the conference. “As startup costs decrease, we’ll see improved cash flow from both operational improvements and reduced capital expenditure.”
The company has secured state licenses for 800 of the new beds built in 2024, according to CEO Chris Hunter, with the remaining 500 licenses anticipated to come through early this year. This expansion builds on Acadia’s existing network of 260 behavioral healthcare facilities across 40 states and Puerto Rico.
Acadia’s current operations include:
- 52 acute care facilities
- 35 specialty treatment facilities
- 164 outpatient opioid use disorder clinics
- 9 residential treatment centers for youth
The company’s revenue structure reflects its strong position in public health programs, with 57% coming from Medicaid, 26% from commercial insurance, 14% through Medicare, and 3% from self-pay and other sources. This diverse revenue stream contributed to $3.1 billion in revenue for the first nine months of 2024.
Since its founding in 2005, Acadia Healthcare has grown from a small Tennessee-based organization into one of the nation’s leading behavioral healthcare providers. The company now serves approximately 75,000 patients daily through its network of facilities, supported by more than 23,500 employees.
To support this growth, Acadia is investing approximately $550-595 million in expansion-related capital expenditure, with about $100 million allocated to maintenance and IT costs. This investment strategy aligns with the company’s commitment to improving mental health treatment accessibility across the United States.
The expansion comes at a crucial time in behavioral healthcare. With mental health needs rising nationwide, Acadia’s increased capacity positions the company to meet growing demand while maintaining its standards for patient care.
Looking forward, Acadia Healthcare plans to continue its strategic growth while focusing on operational efficiency. The company’s leadership sees 2026 as a year when many of these investments will begin to show returns, particularly as startup costs decline and new facilities reach optimal operational levels.
As Acadia moves through this expansion phase, it maintains its headquarters in Franklin, Tennessee, where it continues to coordinate its nationwide network of facilities. The company’s growth from a regional provider to a national healthcare leader demonstrates the increasing importance of accessible mental health services and the vital role of specialized treatment facilities in meeting this need.
The success of this expansion will be measured not just in financial terms, but in Acadia’s ability to maintain its commitment to quality care while serving a growing patient population across its expanded network of facilities.
