Acadia Healthcare Company, Inc. (ACHC) and Methodist Jennie Edmundson Hospital have joined forces to build a cutting-edge behavioral health hospital in Council Bluffs, Iowa. The groundbreaking ceremony for this facility, announced in July 2023, signifies a significant step towards addressing the growing need for mental health services in the region.
The new hospital, to be named Methodist Jennie Edmundson Behavioral Health, is expected to be operational by 2026. It will house 96 inpatient beds, with a dedicated 24-bed unit specifically designed to address the unique mental health needs of children and adolescents. In addition to inpatient care, the facility will also provide comprehensive intensive outpatient services.
This joint venture highlights the commitment of both ACHC and Methodist Health System to expanding access to high-quality behavioral health services. The hospital will leverage cutting-edge technology and resources to provide specialized care for individuals dealing with acute mental health issues and substance use disorders. The project is anticipated to have a positive impact on the health outcomes of residents in western Iowa and eastern Nebraska.
The partnership will also involve close collaboration with local organizations, hospitals, and first responders in both regions, fostering a cohesive approach to mental health care delivery. This collaborative effort aims to create a more comprehensive and responsive system to meet the diverse needs of the communities served.
The establishment of Methodist Jennie Edmundson Behavioral Health comes at a crucial time. According to the American Hospital Directory, Iowa and Nebraska are facing a shortage of over 300 inpatient behavioral health beds, underscoring the urgency of expanding mental health resources in the region.
The new facility represents a significant opportunity for ACHC to expand its reach and provide care to a larger patient population. ACHC frequently engages in joint ventures and acquisitions with reputable health systems across the United States, allowing them to establish new hospitals and expand existing ones through bed additions. As of June 30, 2024, ACHC’s healthcare portfolio comprised 258 behavioral healthcare facilities in 38 states and Puerto Rico. The company anticipates adding over 400 beds to its existing facilities throughout 2024.
The stock performance of Acadia Healthcare has reflected positively on this initiative. ACHC shares have shown strong growth, gaining 19.2% in the past month, surpassing the industry average of 8.5%.
While the opening of Methodist Jennie Edmundson Behavioral Health is a positive development for the community, it’s also an opportunity for investors to consider ACHC’s stock performance. The company’s commitment to expanding access to behavioral health services, combined with its strategic partnerships and successful track record, positions it favorably within the healthcare sector.
