Franklin, Tenn.-based Acadia Healthcare CEO Chris Hunter is optimistic efforts to scale back Medicaid spending will not affect the majority of its patient population.
On a May 13 earnings call, Mr. Hunter told investors the company is “far from having a clear view” on how Medicaid policy changes will shake out.
“We continue to believe the patient populations that we serve, including some of the highest-acuity mental health issues in the country, are going to be relatively less impacted in terms of the risk of losing Medicaid access,” he said.
House Republicans’ budget proposal would introduce work requirements in the Medicaid program and impose a total of $715 billion in Medicaid and ACA funding cuts over 10 years. Work requirements would not take effect until 2029, according to Politico.
Mr. Hunter told investors Acadia is “optimistic” most of the health system’s patients, many of whom have serious mental illnesses, will be exempt from work requirements.
“We have seen in the past, if you remove access to high-acuity mental healthcare for these populations, you tend to get exploding costs in other parts of the system,” he said.
Medicaid covered 41% of psychiatric inpatients in 2024, according to KFF Health News.
