This Company’s Approach to Revenue Growth: Holding Customers Against Their Will
Acadia Healthcare, one of America’s largest psychiatric hospital chains, is taking “growth at all costs” to unsettling new heights. According to a New York Times investigation, the organization has been accused of detaining patients against their will to maximize insurance payouts. Some seeking routine mental health care at emergency rooms found themselves locked inside Acadia facilities despite not meeting the legal criteria for involuntary holds — leading to dozens of complaints across 12 of the 19 states where Acadia operates.
- Acadia, which charges as much as $2,200 per day, has been accused of exaggerating symptoms, tweaking medication dosages, and using arbitrary reasons to justify extended stays — tactics that seem to be working.
- is up nearly 200% over the past five years, more than double the S&P 500. The business has grown its revenue by double digits over the past three years, with profit margins nearly tripling from 3.5% in 2019 to 10.5% in 2022.
Troubling diagnosis: The rise of for-profit psychiatric care has raised concerns about prioritizing financial gain over patient well-being. As the government and nonprofit entities retreat from mental health services, Acadia has stepped in to fill the void, boosted by the Affordable Care Act’s requirement for insurers to cover mental health. In its latest earnings report, the company also pointed to the growing opioid epidemic and the “record 110K overdose deaths reported last year” as drivers of increased demand at its treatment centers.
