Acadia Healthcare Company FY Conference Summary Company Overview - Acadia Healthcare is the largest standalone behavioral health company in the U.S., operating 277 facilities across 40 states and Puerto Rico, with a focus on four service lines: acute facilities, specialty facilities, opioid use disorder outpatient clinics, and child and adolescent residential treatment centers [2][3] Financial Guidance and Performance - For 2025, Acadia expects revenue between $3.28 billion and $3.3 billion, adjusted EBITDA of $601 million to $611 million, and adjusted EPS of $1.94 to $2.04 [1] - The company faced financial challenges in 2025, including higher-than-expected professional liability costs and softer-than-anticipated growth, particularly in Medicaid [17][18] Service Lines and Patient Care - Acadia serves over 82,000 patients daily, with a focus on high-acuity and complex care patient populations [3] - The company has established partnerships with 21 joint venture (JV) partners, enhancing its service offerings and operational effectiveness [4] - Quality of care is a core focus, with significant improvements reported: 29% in mental health quality of life and 54% in depression outcomes [11] Operational Improvements - Acadia opened over 1,000 new beds in 2025, including 778 in newly constructed facilities, contributing to future EBITDA growth [10][15] - The company has implemented electronic medical records (EMRs) and remote patient monitoring to enhance care quality and operational efficiency [8][9] - Labor retention has improved, with six consecutive quarters of increased retention rates due to better wage conditions and targeted training [9] Challenges and Headwinds - The company anticipates continued softness in acute care Medicaid volumes and payer-related pressures, particularly in New York, which may impact EBITDA by $25-$30 million annually [24][25] - Regulatory scrutiny and staffing ratio requirements in California pose additional challenges [24][25] Future Outlook - Acadia plans to reduce capital expenditures (CapEx) by at least $300 million in 2026 while still adding 500 to 700 new beds [16] - The company expects to generate positive free cash flow and unlock significant EBITDA opportunities from recent facility openings, estimating over $200 million in future EBITDA from new facilities [22][31] - The focus for 2026 will be on execution, optimizing occupancy, and leveraging payer engagement to drive operational excellence [23] Industry Trends - Demand for behavioral health services remains high, with increasing rates of mental health issues and substance use disorders, positioning Acadia to meet the needs of vulnerable patient populations [43][44] Conclusion - Acadia Healthcare is strategically positioned to capitalize on growth opportunities in the behavioral health sector while addressing operational challenges and enhancing care quality through technology and partnerships. The company remains committed to improving patient outcomes and delivering long-term shareholder value [29][42]