Acadia Healthcare has closed five facilities in the past year.
The Franklin, Tenn.-based behavioral health provider operates 258 facilities. On an Aug. 1 investors call transcribed by Seeking Alpha, CEO Chris Hunter said the company closed two "underperforming" facilities in the second quarter, and five facilities in the past 12 months.
"If we're seeing facilities that are underperforming and don't see a path to improvement, we're going to take action," Mr. Hunter said.
The company has closed more facilities than it usually does over the past few quarters, but the closures were part of normal portfolio optimization, the CEO said.
One of the closed facilities was a wilderness program in North Carolina, Mr. Hunter said.
"We were having real challenges funding staff and counselors that could take adolescents into the woods for multiple days. We had no other programs like that, and it was really a one-off type facility where we were struggling with staffing," Mr. Hunter said.
Acadia is planning to add 1,200 new beds to its facilities by the end of 2024. The company plans to add up to 400 beds to its existing facilities, and to open four new inpatient facilities in the second half of 2024.