We are short Acadia Healthcare (NASDAQ: ACHC) because the company has concealed widespread patient abuse and neglect that results from pervasive understaffing at its facilities.
The True Nature of Acadia’s Business Model
At Acadia, cutting staffing costs to the bone is the “secret sauce” used by management to inflate short term profits. Acadia depends on acquiring new facilities and then degrading care, a losing proposition that victimizes patients.
Over several months, we gathered and reviewed thousands of pages of public documents including over 600 state and federal inspection reports as well as court records, media reports, lawsuits, and police records. We found:
- Numerous patients, including children and teenagers, have died due to alleged negligence or malpractice at Acadia facilities.
- Recurring reports of sexual abuse and physical assaults on vulnerable patients that have allegedly been perpetrated by Acadia employees or unmonitored patients.
- Repeated instances of patient neglect or deficient care linked directly to staffing problems at Acadia facilities.
- A pattern of whistleblower allegations made by former employees who say Acadia retaliated against them after they reported fraud or misconduct.
We will individually profile 30 of Acadia’s most problematic facilities in a series of additional releases. Please subscribe for updates.