Acadia Healthcare Company, Inc. ACHC and Methodist Jennie Edmundson Hospital recently conducted a groundbreaking ceremony for a cutting-edge behavioral health hospital in Council Bluffs, IA. Plans to establish the hospital were announced in July 2023 as part of the joint-venture partnership between ACHC and Omaha-based Methodist Health System. The Methodist Jennie Edmundson Hospital is part of Methodist Health System.

The new facility will be named Methodist Jennie Edmundson Behavioral Health and is likely to commence operations in 2026. It will feature 96 inpatient beds, with 24 specifically designated for addressing the mental health needs of children and adolescents. It will also offer intensive outpatient services. The hospital will invest in cutting-edge technology and resources to enhance access to high-quality behavioral health services for patients dealing with acute mental health and substance use disorders.

This, in turn, is expected to bring about improved health outcomes for residents of western Iowa and eastern Nebraska. Working closely with local organizations, hospitals and first responders of the two regions will enable the joint venture partners to better serve the targeted regions.

A Time-Opportune Move on ACHC’s Part

Opening the Methodist Jennie Edmundson Behavioral Health Hospital is likely to be a time-opportune move considering the dire need for acute and intensive outpatient behavioral health services across the Council Bluffs community. According to the American Hospital Directory, there remains a shortage of more than 300 inpatient behavioral health beds in Iowa and Nebraska, which further substantiates the timeliness of the recent move.

Benefits to Acadia Healthcare

New facilities resulting from joint ventures offer a means for ACHC to serve a greater number of patients and earn more revenues.

Acadia Healthcare often resorts to buyouts or joint ventures with renowned U.S. health systems to inaugurate new hospitals or expand existing facilities through bed additions. Its healthcare portfolio comprised 258 behavioral healthcare facilities across 38 states and Puerto Rico as of June 30, 2024. Management anticipates adding more than 400 beds to existing facilities in 2024.

ACHC Stock’s Price Performance

Shares of Acadia Healthcare have gained 19.2% in the past month compared with the industry’s 8.5% growth.

Image Source: Zacks Investment Research

Zacks Rank & Key Picks

ACHC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Medical space are LeMaitre Vascular, Inc. LMAT, Avanos Medical, Inc. AVNS and The Ensign Group, Inc. ENSG. While LeMaitre Vascular sports a Zacks Rank #1 (Strong Buy), Avanos Medical and Ensign Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.