Franklin-based Acadia Healthcare is retrenching after ousting its chairman in December. Under Joey Jacobs, it became one of the largest operators of psychiatric hospitals and addiction clinics in the country. But Acadia is now talking about selling off one of its largest acquisitions.
Acadia bought a big behavioral health provider in the United Kingdom in 2016. The purchase of Priory Group nearly doubled the company's scale in a single $3.6 billion deal. But that's left Acadia heavily in debt and dragged down share prices. Now Acadia announced plans on a conference call with investors to sell that U.K. division and trim expenses in the U.S.
Newly appointed CEO Debbie Osteen spent her first few months on the job reviewing the company's operations. She said Acadia plans to be more careful with future growth.
"While we've confirmed that we're in the right service lines, we also have adjusted some of our thought process and also our models here around that discipline and how we choose to allocate capital," she said.
Osteen says Acadia remains in a favorable industry as medication-assisted opioid treatment has become the standard and insurance is required to offer more coverage for mental health.