Franklin, Tenn.-based Acadia Healthcare bucked industrywide staffing trends and improved its recruiting and retention in the first quarter of 2023, according to an April 27 earnings call transcribed by Seeking Alpha.
"We were pleased with our labor metrics for the first quarter of 2023 and believe the labor environment continues to show signs of improvement, positioning the company for further stability and an easing of wage growth over the remainder of the year," CEO Christopher Hunter said in the earnings call.
The behavioral healthcare provider, one of the nation's largest, saw higher revenue and adjusted EBITDA, but a slightly lower margin, compared to the first quarter of 2022. Acadia also exceeded its expectations for patient volumes.
"We saw record patient volumes during the first quarter," Mr. Hunter said in the call. "The 6.5 percent year-over-year patient day growth for the first quarter was above the high end of our outlook range. We are also very pleased with our revenue per day growth of 6.4 percent, which was driven by favorable rate increases across our service lines, markets and payers."
Ten things to know from the earnings call:
1. Net revenue was $704.3 million, a 14.2 percent increase over the first quarter of 2022.
2. Adjusted EBITDA was $151.3 million, 11.7 percent higher than the first quarter of 2022.
3. Margin was 21.5 percent, down from 22 percent in the same quarter 2022.
4. Acadia added 106 beds to existing facilities en route to a goal of 300 beds added to existing facilities in 2023.
5. The company is set to open a 101-bed behavioral health hospital in Chicago and an 80-bed facility in Indio, Calif., in 2023, while construction began in the first quarter on a 100-bed behavioral health hospital in Mesa, Ariz.
6. About 670 beds are expected to be added systemwide in 2023, including new facilities.
7. Two joint venture facilities with Geisinger Health and Bronson Healthcare are set to open in the third quarter.
8. Acadia improved its recruiting and retention and is investing in IT, HR, recruiting, marketing and managed care initiatives.
9. Base wage inflation in premium pay was 7.5 percent, down from 8 percent in the fourth quarter 2022.
10. The company expects net revenue for the year to land between $2.82 billion and $2.88 billion, with adjusted EBITDA between $635 million and $675 million.