Universal Health Services and Acadia Healthcare have not seen any noticeable referral declines in the wake of a U.S. Senate report criticizing their residential treatment centers, executives said.
Steve Filton, CEO of King of Prussia, Pa.-based UHS told investors the company has seen "virtually no impact" from the report.
"I think the greatest impact we would expect perhaps to have seen would be from referral sources," Mr. Filton said on a July 25 investor call. "I think what we believe is the lesson from this is that referral sources understand the business very well. They understand this is a very difficult patient population."
The report, published in June 2024 by the Senate Finance Committee, alleged children are frequently harmed in residential treatment centers. Sexual abuse, improper uses of seclusion and restraint and unsafe and unsanitary conditions persist in residential treatment facilities, the committee alleged.
UHS and Acadia facilities were a major focus of the report.
Senate Finance Committee Chair Ron Wyden said he plans to introduce legislation to raise health and safety standards in residential facilities.
Chris Hunter, CEO of Franklin, Tenn.-based Acadia Healthcare, said the behavioral health provider has not seen any negative effects from the report.
Residential treatment centers comprise around 11% of Acadia's revenue, he said.
"We believe that the people that deal with this patient population every day, and that certainly includes our referral sources, as well as the various regulatory oversight bodies that are routinely in these facilities, understand that this is just a really difficult population," Mr. Hunter said on an Aug. 5 call with investors.
"I think they also understand that our facilities are providing high-quality care to this population, and we demonstrate that routinely with the outcomes that we're able to achieve," he added.