Acadia Healthcare (NASDAQ:ACHC) Company, Inc. (NASDAQ:ACHC), a provider of behavioral healthcare services, disclosed today that it is under investigation by federal authorities concerning its patient admissions, length of stay, and billing procedures.
The company reported receiving a voluntary request for information from the United States Attorney's Office for the Southern District of New York and a grand jury subpoena from the United States District Court for the Western District of Missouri on Monday. A similar subpoena was also issued to Acadia's subsidiary, Lakeland Hospital Acquisition, LLC.
The company stated that it is fully cooperating with the investigations and is preparing for the possibility of additional document requests from the U.S. Securities and Exchange Commission and other government agencies. At this time, Acadia has not provided any predictions regarding the potential impact of these investigations on its business operations.
In its statement, Acadia included cautionary language highlighting that the discussion of the investigations contains forward-looking statements subject to significant risks and uncertainties. These statements should not be overly relied upon as they are based on current management expectations and could change materially.
The company has emphasized its commitment to transparency and compliance with legal requirements, reiterating that it will not publicly update forward-looking statements unless mandated by law. Investors are encouraged to review the company's filings with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for further details on risk factors that could affect Acadia's business.
In other recent news, the U.S. Securities and Exchange Commission (SEC) has penalized seven publicly traded companies, including TransUnion (NYSE:TRU) and Acadia Healthcare, for violating whistleblower protection regulations. The total fines amount to $3 million, with Acadia Healthcare facing the largest penalty of $1.39 million.
TransUnion, on the other hand, will pay $312,000. All companies involved have begun remedial actions to rectify the problematic agreements.
In separate recent developments, Acadia Healthcare reported an 8.8% increase in revenue for the second quarter of 2024, reaching $796 million. The company's adjusted EBITDA also grew by 7.6% compared to the same period the previous year.
Despite the closure of two underperforming facilities, Acadia anticipates strong volume growth and mid-single-digit same-store patient day growth for the second half of the year. The company is also on track to add approximately 1,200 beds this year, indicating a period of expansion.
InvestingPro Insights
In light of the ongoing federal investigations into Acadia Healthcare Company, Inc. (NASDAQ:ACHC), investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro data, Acadia's market capitalization stands at $7.03 billion, with a revenue of $3.06 billion for the last twelve months as of Q2 2024, showing a growth of 10.07% over the same period.
Despite the current challenges, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This outlook could provide some reassurance to investors concerned about the potential impact of the investigations. Additionally, Acadia has demonstrated a strong return over the last five years, which may indicate resilience in the face of regulatory scrutiny.
It's worth noting that Acadia does not pay a dividend to shareholders, focusing instead on reinvesting in the business. This strategy may be particularly important as the company navigates the current situation and prepares for potential legal and compliance costs.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Acadia Healthcare, which could be particularly useful in assessing the company's position amidst these investigations.
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