AAC (AACH) 10-Q 10 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	AAC
Entity Registrant Name	AAC Holdings, Inc.
Entity Central Index Key	1,606,180
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		22,407,311

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 10,764	$ 48,540
Accounts receivable, net of allowances	58,080	28,718
Deferred tax assets	2,380	1,214
Prepaid expenses and other current assets	5,500	1,450
Total current assets	76,724	79,922
Property and equipment, net	97,027	49,196
Goodwill	103,132	12,702
Intangible assets, net	9,462	2,935
Other assets	4,566	1,197
Total assets	290,911	145,952
Current liabilities
Accounts payable	6,788	2,001
Accrued liabilities	20,476	10,411
Current portion of long-term debt	3,661	2,570
Current portion of long-term debt – related party	1,195	1,787
Total current liabilities	32,120	16,769
Deferred tax liabilities	1,942	1,479
Long-term debt, net of current portion	116,710	24,097
Long-term debt—related party, net of current portion		187
Other long-term liabilities	4,499	431
Total liabilities	$ 155,271	$ 42,963
Commitments and contingencies
Mezzanine equity including noncontrolling interest
Noncontrolling interest—Series A Preferred Units		$ 7,848
Total mezzanine equity including noncontrolling interest		7,848
Stockholders’ equity
Common stock, $0.001 par value: 70,000,000 shares authorized, 21,374,374 and 22,407,311 shares issued and outstanding at December 31, 2014 and September 30, 2015, respectively	$ 22	21
Additional paid-in capital	120,438	88,238
Retained earnings	19,260	9,215
Total stockholders’ equity	139,720	97,474
Noncontrolling interest	(4,080)	(2,333)
Total stockholders’ equity including noncontrolling interest	135,640	95,141
Total liabilities, mezzanine equity and stockholders’ equity	$ 290,911	$ 145,952

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	21,374,374	21,374,374
Common stock, shares outstanding	22,407,311	22,407,311

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Client related revenue	$ 53,695	$ 36,599	$ 150,302	$ 95,802
Other revenue	3,677		3,677
Total revenue	57,372	36,599	153,979	95,802
Operating expenses
Salaries, wages and benefits	23,777	15,625	61,884	39,749
Advertising and marketing	5,790	3,910	15,527	10,989
Professional fees	3,383	1,722	6,713	6,617
Client related services	4,438	2,789	10,831	8,000
Other operating expenses	5,695	4,064	16,044	9,615
Rentals and leases	1,583	536	3,442	1,476
Provision for doubtful accounts	5,366	2,180	12,925	8,468
Litigation settlement	859	118	2,379	358
Depreciation and amortization	1,921	1,209	4,937	3,437
Acquisition-related expenses	937		2,917
Total operating expenses	53,749	32,153	137,599	88,709
Income from operations	3,623	4,446	16,380	7,093
Interest expense, net (change in fair value of interest rate swaps of $324 , $137, $324 , and $683, respectively)	1,203	845	2,426	1,550
Other expense, net	32	65	(28)	80
Income before income tax expense	2,388	3,536	13,982	5,463
Income tax expense	644	1,511	5,003	2,370
Net income	1,744	2,025	8,979	3,093
Less: net loss attributable to noncontrolling interest	708	433	1,747	1,101
Net income attributable to AAC Holdings, Inc. stockholders	2,452	2,458	10,726	4,194
Net income available to AAC Holdings, Inc. common stockholders	$ 2,452	$ 2,213	$ 10,045	$ 3,746
Basic earnings per common share	$ 0.11	$ 0.14	$ 0.47	$ 0.25
Diluted earnings per common share	$ 0.11	$ 0.14	$ 0.46	$ 0.25
Weighted-average shares outstanding:
Basic	21,922,374	15,598,396	21,471,063	15,161,266
Diluted	22,031,133	15,614,380	21,651,654	15,245,758
BHR | Series A Preferred Stock
Operating expenses
BHR Series A Preferred Unit dividends		$ (245)	$ (147)	$ (448)
Redemption of BHR Series A Preferred Units			$ (534)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Swap
Change in fair value of interest rate swaps	$ 137	$ 324	$ 683	$ 324

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	AAC Holdings, Inc.	Common StockAAC Holdings, Inc.	Additional Paid In Capital	Retained Earnings	Noncontrolling Interest	BHRSeries A Preferred Stock	BHRSeries A Preferred StockAAC Holdings, Inc.	BHRRetained EarningsSeries A Preferred Stock	Clinical Services Of Rhode Island Inc	Clinical Services Of Rhode Island IncAAC Holdings, Inc.	Clinical Services Of Rhode Island IncCommon StockAAC Holdings, Inc.	Clinical Services Of Rhode Island IncAdditional Paid In Capital	Referral Solutions Group LLC	Referral Solutions Group LLCAAC Holdings, Inc.	Referral Solutions Group LLCCommon StockAAC Holdings, Inc.	Referral Solutions Group LLCAdditional Paid In Capital	Taj Media LLC	Taj Media LLCAAC Holdings, Inc.	Taj Media LLCCommon StockAAC Holdings, Inc.	Taj Media LLCAdditional Paid In Capital	Marketing Intangibles	Marketing IntangiblesAAC Holdings, Inc.	Marketing IntangiblesAdditional Paid In Capital
Balance at Dec. 31, 2014	$ 95,141	$ 97,474	$ 21	$ 88,238	$ 9,215	$ (2,333)
Balance, share at Dec. 31, 2014			21,374,374
Common stock granted and issued under stock incentive plan, net of forfeitures, amount	3,977	3,977		3,977
Common stock granted and issued under stock incentive plan, net of forfeitures, share			400,394
Effect of employee stock purchase plan	499	499	$ 12,637	499
BHR Series A Preferred Unit dividends							$ (147)	$ (147)	$ (147)
Redemption of BHR Series A Preferred Units							$ (534)	$ (534)	$ (534)
Acquisition of certain assets										$ 1,343	$ 1,343		$ 1,343	$ 24,174	$ 24,174	$ 1	$ 24,173	$ 1,667	$ 1,667		$ 1,667	$ 541	$ 541	$ 541
Acquisition of certain assets, shares												42,460				540,193				37,253
Net income	8,979	10,726			10,726	(1,747)
Balance at Sep. 30, 2015	$ 135,640	$ 139,720	$ 22	$ 120,438	$ 19,260	$ (4,080)
Balance, shares at Sep. 30, 2015			22,407,311

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 8,979	$ 3,093
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provision for doubtful accounts	12,925	8,468
Depreciation and amortization	4,937	3,437
Equity compensation	4,144	1,515
Accretion of discount on notes payable		33
Amortization of debt issuance costs	156	25
Deferred income taxes	(704)	(1,662)
Changes in operating assets and liabilities:
Accounts receivable	(35,934)	(10,884)
Prepaid expenses and other assets	(3,920)	(3,174)
Accounts payable	4,383	553
Accrued liabilities	10,018	4,227
Other long term liabilities	840	165
Net cash provided by operating activities	5,824	5,796
Cash flows from investing activities:
Purchase of property and equipment	(42,779)	(12,021)
Issuance of notes and other receivables - related parties		(488)
Collection of notes and other receivables - related parties		738
Acquisition of subsidiaries, net of cash acquired	(83,971)	(3,351)
Escrow funds held on acquisition	(500)
Purchase of intangible assets	(540)
Purchase of other assets, net	(50)	(179)
Net cash used in investing activities	(127,840)	(15,301)
Cash flows from financing activities:
Proceeds from revolving line of credit, net	47,000	500
Proceeds from long-term debt	73,802	4,053
Payments on long-term debt and capital leases	(26,546)	(2,798)
Repayment of long-term debt — related party	(542)	(786)
Repayment of subordinated notes payable	(945)
Repurchase of common stock		(116)
Proceeds from sale of common stock — private placement		6,089
Dividends paid		(79)
Distributions to noncontrolling interest		(915)
Net cash provided by financing activities	84,240	12,326
Net change in cash and cash equivalents	(37,776)	2,821
Cash and cash equivalents, beginning of period	48,540	2,012
Cash and cash equivalents, end of period	10,764	4,833
Cash and cash equivalents paid for:
Interest, net of capitalized interest	2,178	1,119
Income taxes, net of refunds	1,200	243
Supplemental information on non-cash investing and financing transactions:
Acquisition of equipment through capital lease		614
BHR
Supplemental information on non-cash investing and financing transactions:
Purchase Price		11,759
Assumption of debt		(1,759)
Buyer common stock issued		(7,000)
Cash paid for acquisition		3,000
BHR | Series A Preferred Stock
Cash flows from financing activities:
Proceeds from sale of BHR Series A Preferred Units		8,203
Redemption of BHR Series A Preferred Units	(8,529)	(1,825)
CRMS Acquisition
Supplemental information on non-cash investing and financing transactions:
Purchase Price		2,500
Buyer common stock issued		(2,000)
Cash paid for acquisition		$ 500
Clinical Services Of Rhode Island Inc
Supplemental information on non-cash investing and financing transactions:
Purchase Price	2,008
Buyer common stock issued	(1,343)
Cash paid for acquisition	665
Referral Solutions Group LLC
Supplemental information on non-cash investing and financing transactions:
Purchase Price	56,653
Buyer common stock issued	(24,173)
Cash paid for acquisition	32,480
Taj Media LLC
Supplemental information on non-cash investing and financing transactions:
Purchase Price	3,907
Buyer common stock issued	(1,667)
Cash paid for acquisition	$ 2,240

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Description of Business AAC Holdings, Inc. (collectively with its subsidiaries, the “Company” or “Holdings”), was incorporated on February 12, 2014 for the purpose of acquiring all the common stock of American Addiction Centers, Inc. (“AAC”) and to engage in certain reorganization transactions as more fully described in Note 3. The Company is headquartered in Brentwood, Tennessee and provides substance abuse treatment services for individuals with drug and alcohol addiction. The Company also provides treatment services for clients struggling with behavioral health disorders, including disorders associated with overeating. At September 30, 2015, the Company, through its subsidiaries, operated eight residential substance abuse treatment facilities, eight standalone outpatient centers, and one facility that provides treatment services for men and women who struggle with overeating-related behavioral disorders. Following the Company’s acquisition of Referral Solutions Group, LLC (“RSG”) on July 2, 2015, combined with its previously existing internet assets, the Company operates a broad portfolio of internet assets that service millions of website visits each month. RSG, through its wholly owned subsidiary Recovery Brands, LLC (“Recovery Brands”), a leading publisher of “authority” websites such as Rehabs.com and Recovery.org, serves families and individuals struggling with addiction and seeking treatment options through comprehensive online directories, treatment provider reviews, forums and professional communities. Recovery Brands also provides online marketing solutions to other treatment providers such as enhanced facility profiles, audience targeting, lead generation and tools for digital reputation management.

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Recently Issued Accounting Pronouncements	2. Principles of Consolidation The Company conducts its business through limited liability companies and C-corporations, each of which is a direct or indirect wholly owned subsidiary of the Company. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, the accounts of variable interest entities (“VIEs”) in which the Company is the primary beneficiary, and certain professional groups through rights granted to the Company by contract to manage and control the business of such professional groups. All intercompany transactions and balances have been eliminated in consolidation. The Private Share Exchange (defined below) transaction between the Company and AAC’s stockholders (as discussed in Note 3) was accounted for similar to a common control transaction resulting in the assets, liabilities, and equity of AAC being carried over at their historical bases. At the time of the Private Share Exchange, Holdings was a shell company that had not conducted any business and had no material assets or liabilities. As such, the historical financial statements presented for periods prior to the Private Share Exchange represent the historical results of operations of AAC. During the nine months ended September 30, 2014, the Company consolidated one real estate VIE, Behavioral Healthcare Realty, LLC (“BHR”) through April 15, 2014, at which point BHR was acquired by the Company and became a wholly owned subsidiary of the Company (see Note 3 for further discussion). BHR leased two treatment facilities to the Company under long-term triple net leases and was renovating and constructing additional treatment facilities that it planned to lease to the Company. The Company was the primary beneficiary as a result of its guarantee of BHR’s debt prior to the acquisition. The Company also consolidated five professional groups (“Professional Groups”) that constituted VIEs as of September 30, 2014 and six Professional Groups that constituted VIEs as of September 30, 2015. The Professional Groups are responsible for the supervision and delivery of medical services to the Company’s clients. The Company provides management services to the Professional Groups. Based on the Company’s ability to direct the activities that most significantly impact the economic performance of the Professional Groups, provide necessary funding and the obligation and likelihood of absorbing all expected gains and losses, the Company has determined that it is the primary beneficiary of these Professional Groups. The accompanying consolidated balance sheets as of December 31, 2014 and September 30, 2015 include assets of $0.5 million and $2.6 million, respectively, and liabilities of $3.3 million and $0.6 million, respectively, related to the VIEs. The accompanying consolidated income statements include net loss attributable to noncontrolling interest of $0.4 million and $0.7 million related to the VIEs for the three months ended September 30, 2014 and 2015, respectively, and $1.1 million and $1.7 million for the nine months ended September 30, 2014 and 2015, respectively. The accompanying condensed consolidated financial statements are unaudited, with the exception of the December 31, 2014 balance sheet which is consistent with the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for a complete set of financial statements. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2015. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. Companies across all industries will use a new five-step model to recognize revenue from customer contracts. The new standard, which replaces nearly all existing GAAP and International Financial Reporting Standards revenue recognition guidance, will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The standard is effective for public entities for annual and interim periods beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this standard will have on its revenue recognition policies and procedures, financial position, result of operations, cash flows, financial disclosures and control framework. In March 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and those interim periods within those fiscal years, with early adoption permitted. The update requires debt issuance costs related to a note to be reported in the balance sheet as a direct deduction from the face amount of that note on a retrospective basis upon adoption. The Company determined to early adopt the revised guidance and presented $1.4 million of deferred debt issuance costs associated with the Company’s 2015 Credit Facility (as later defined) net of the debt balance at September 30, 2015 (see Note 11). The impact on prior periods was not material. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years. The Company does not expect the adoption of ASU 2015-16 will have a material impact on its results of operations.

Reorganization Transactions

Reorganization Transactions	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Reorganization Transactions	3. Reorganization Transactions On April 15, 2014, the Company completed the following transactions which were all completed substantially concurrently (collectively, the “Reorganization Transactions”): · A voluntary private share exchange with certain stockholders of AAC, whereby holders representing over 93.6% of the outstanding shares of common stock of AAC exchanged their shares on a one-for-one basis for shares of the Company’s common stock; · The acquisition of all of the outstanding common membership interests of BHR, an entity controlled by related parties, which, at the time of the acquisition, through its subsidiaries owned properties located in Florida, Nevada and Texas, in exchange for $3.0 million in cash, the assumption of a $1.8 million term loan and 820,124 shares of the Company’s common stock (the “BHR Acquisition”); and · The acquisition of all of the outstanding membership interests of Clinical Revenue Management Services, LLC (“CRMS”), an entity controlled by related parties, which provides client billing and collection services for the Company, in exchange for $0.5 million in cash and 234,324 shares of the Company’s common stock. As a result of the foregoing transactions, the Company owned (i) over 93.6% of the outstanding common stock of AAC, (ii) 100% of the outstanding common membership interests in BHR, and (iii) 100% of the outstanding membership interests in CRMS. To help fund or facilitate these transactions, the following additional financing transactions were undertaken in 2014 prior to or in connection with the aforementioned transactions: (i) AAC sold 741,322 shares of its common stock in a private placement to certain accredited investors from February 2014 through April 2014, with net proceeds of $6.0 million, (ii) BHR sold 8.5 Series A Preferred Units in a private placement to certain accredited investors in January and February 2014, with net proceeds of $0.4 million, (iii) BHR redeemed all of its outstanding 36.5 Series A Preferred Units from certain accredited investors in April 2014 and (iv) BHR sold 160 new Series A Preferred Units in a private placement to an accredited investor in April 2014, with net proceeds of $7.8 million. Private Share Exchange Certain common shares of AAC issued in 2008 under the previous board of directors exceeded the number of shares duly authorized by AAC’s Articles of Incorporation. These common shares were previously classified as mezzanine equity in the consolidated balance sheets because they did not meet the definition of permanent equity as a result of these legal imperfections. To cure these legal imperfections and in preparation for an initial public offering, in the first quarter of 2014, the Company initiated a voluntary private share exchange with certain of AAC’s stockholders whereby the Company offered to certain of AAC’s stockholders the opportunity to receive one share of the Company’s common stock for (i) each share of AAC’s common stock held by such stockholders and (ii) a release from claims arising from or related to the share imperfections (collectively, the “Private Share Exchange”). The Private Share Exchange was conditioned upon, among other things, holders of AAC’s common stock who participated in the Private Share Exchange validly assigning and transferring to the Company at least 90% of the outstanding shares of AAC prior to the expiration of the Private Share Exchange. At the expiration of the Private Share Exchange in April 2014, holders representing 93.6% of AAC’s common stock had exchanged their shares for shares of common stock of the Company, and AAC became a majority-owned subsidiary of the Company. The Private Share Exchange was accounted for similar to a common control transaction resulting in the assets, liabilities and equity of AAC being carried over at their historical bases. Prior to the completion of the Reorganization Transactions, Holdings had not engaged in any business or other activities except in connection with its formation. Shares of AAC common stock that were not exchanged remained in mezzanine equity or stockholders’ equity until the completion of the short-form merger in November 2014. Behavioral Healthcare Realty, LLC Acquisition On April 15, 2014, BHR redeemed 36.5 of its non-controlling Series A Preferred Units for $1.8 million. These former holders of Series A Preferred Units used the proceeds from the redemption to purchase 224,697 shares of AAC’s common stock at $8.12 per share as part of an exempt common stock offering. As part of the aforementioned transaction, nine of the Series A Preferred Units were redeemed from directors and relatives of directors who purchased 55,406 shares of AAC’s common stock valued at approximately $450,000. Simultaneously, BHR amended and restated its limited liability company agreement which among other things changed the rights and privileges of the Series A Preferred Units. On April 15, 2014, BHR received $7.8 million in net proceeds from the sale of 160 units of its non-controlling Series A Preferred Units ($50,000 per unit) to BNY Alcentra Group Holdings, Inc. (“Alcentra”). Alcentra received a 1% fee at closing and is entitled to receive a preferred return of 12% per annum on its initial investment, payable quarterly in arrears. The Series A Preferred Units contained certain embedded issuer call and holder put provisions. BHR had the option to redeem a minimum of 40 Series A Preferred Units and up to 100% of the outstanding Series A Preferred Units for $50,000 per unit, plus (i) any accrued and unpaid preferred return and (ii) a call premium of (a) 3.0% through April 15, 2015, (b) 2.0% from April 16, 2015 through April 15, 2017 and (c) no premium any time after April 15, 2017. Alcentra had a put right that, if exercised, required BHR to redeem all of the issued and outstanding Series A Preferred Units by making a payment equal to $50,000 per unit plus the accrued but unpaid preferred return. Alcentra had the ability to exercise its put right for a period of 30 days following the 36 th th th The Series A Preferred Units generally had no voting or approval rights regarding the management of BHR. However, the holders of Series A Preferred Units were entitled to vote with respect to (i) any action that would change the rights or restrictions of the Series A Preferred Units in a way that would adversely affect such holders and (ii) the creation or issuance of any other security convertible into or exercisable for any equity security of BHR having rights, preferences or privileges senior to the common units of BHR. In addition, unanimous approval of all BHR members, including the holders of Series A Preferred Units, is required to approve the sale by BHR of more than 50% of its real property, more than 50% of the voting or economic rights of any BHR subsidiary or the merger, consolidation, sale of all or substantially all of the assets of BHR or sale of a majority of the common units of BHR. In addition, as long as Alcentra owned at least 60 Series A Preferred Units, subject to adjustment for certain BHR redemptions, the manager of BHR could not engage in certain transactions without the approval of a majority of the Series A Preferred Unit holders, including, without limitation, the following: (i) liquidate, dissolve or wind up the business of BHR; (ii) authorize the issuance of additional Series A Preferred Units or any class or series of equity securities with rights, preferences or parity with or senior to that of the Series A Preferred Units; (iii) declare or pay any cash distribution or make any other distribution not permitted under the limited liability company agreement; (iv) pay any management or similar fees; (v) pay rebates or reduce payments payable by any primary tenants or (vi) make payments to affiliates of BHR in excess of $3.0 million per year in the aggregate. On February 25, 2015, the Company exercised its call provision and redeemed 100% of the outstanding Series A Preferred Units for a total redemption price of approximately $8.5 million, which included $0.2 million for the 3.0% call premium and $0.3 million for unpaid preferred returns. Substantially concurrent with the Private Share Exchange in April 2014, the Company acquired all of the outstanding common membership interests of BHR by issuing 820,124 shares of Company common stock (at a fair value of $8.54 per share as determined by the Company), paying $3.0 million in cash and assuming a $1.7 million term loan from a financial institution to our CEO, President and CFO. The original proceeds from this loan were used to repay a loan related to Greenhouse Real Estate, LLC and was accounted for as an additional capital contribution in BHR. The Company refinanced the assumed term loan and was required to make monthly principal payments of $35,855 to a financial institution, plus 5.0% interest and a balloon payment of $1.4 million in April 2015. Prior to the BHR Acquisition, BHR was controlled by the CEO, President and CFO of the Company. BHR owns the real property associated with treatment facilities, which are leased to the Company, as well as other properties that are currently in development or are being held for future development. The BHR Acquisition was accounted for as a common control transaction as BHR was already being consolidated as a VIE in accordance with FASB ASC 810, Consolidations Clinical Revenue Management Services, LLC Acquisition On April 15, 2014, the Company acquired all the outstanding membership interests of CRMS in exchange for $0.5 million in cash and 234,324 common shares of the Company’s common stock (at a fair value of $8.54 per common share as determined by the Company) for total consideration paid of $2.5 million (collectively, the “CRMS Acquisition”). The purchase price was based upon a third party valuation report of CRMS obtained by the Company. CRMS provides billing and collections services to the Company, and after this acquisition continues to provide all billing and collection services for the Company as a wholly owned subsidiary. Prior to its acquisition by the Company, CRMS was owned by the spouses of the Company’s CEO and President. The purchase price resulted in a premium to the fair value of the net assets acquired and, correspondingly, the recognition of goodwill. The amount recorded for goodwill was consistent with the Company’s intentions for the acquisition. The acquisition was accounted for as a business combination. The Company recorded the transaction based upon the fair value of the consideration paid. This consideration was allocated to the assets acquired and liabilities assumed at the acquisition date based on their fair values as follows (in thousands): Cash $ 149 Accounts receivable 452 Property and equipment 91 Goodwill 1,810 Total assets acquired 2,502 Accrued liabilities 2 Total liabilities assumed 2 Net assets acquired $ 2,500 Qualitative factors that contributed to the recognition of goodwill include certain intangible assets that are not recognized as a separate identifiable intangible asset apart from goodwill and expected cost reduction synergies in annual cost savings. Intangible assets not recognized apart from goodwill consist primarily of the assembled workforce. Acquisition related costs were $- million and $0.1 million for the three and nine months ended September 30, 2014, respectively, and were expensed in other operating expenses in the condensed consolidated statements of income. Fair Value of Shares Issued The Company determined the fair value of shares of restricted common stock of the Company issued in connection with the BHR Acquisition and the CRMS Acquisition to be $8.54 per share. Management analyzed a valuation report prepared by an independent third party with respect to the valuation of the Company taking into account the Private Share Exchange, the BHR Acquisition and the CRMS Acquisition. In particular, the valuation report analyzed the potential impact of the then-proposed Reorganization Transactions on the valuation of the Company, such as the increase in 2013 pro forma net income as a result of BHR results of operations being included for all of 2013. The valuation report also noted that the impact of the BHR Acquisition on the enterprise value would be mixed, as the additional earnings before interest, taxes, depreciation, and amortization (“EBITDA”) generated at the Company level due to recapture rents and cash and non-cash expenses was not sufficient to overcome the negative impact on enterprise value of BHR’s debt outstanding for the entire year. With respect to CRMS, the analysis determined that the CRMS Acquisition would allow the recapture of additional EBITDA (on a pro forma basis for 2013) due to a combination of recapture revenues (commissions no longer paid) and the expected cost savings. In determining the fair value of the Company’s common stock, management also considered investor demand in the private placement of AAC common stock from February 2014 through April 2014 at $8.12 per share, the improved projected results of operations of the remainder of 2014 and the probability of an initial public offering in 2014. Based on the foregoing analysis, the Company determined the fair value of the Company’s common stock as of April 15, 2014 to be $8.54 per share. Initial Public Offering and Short-Form Merger On October 7, 2014, the Company completed an initial public offering (“IPO”) of 5,750,000 shares of its common stock at a public offering price of $15.00 per share, which included the exercise in full of the underwriters’ option to purchase an additional 250,000 shares from the Company and 500,000 shares from certain selling stockholders. Net proceeds to the Company from the IPO were approximately $68.8 million, after deducting underwriting discounts and offering costs. On November 10, 2014, the Company completed a subsidiary short-form merger with AAC and a wholly-owned merger subsidiary whereby the legacy holders of AAC common stock who did not participate in the Private Share Exchange received 1.571119 shares of Holdings common stock for each share of AAC common stock owned at the effective time of the merger (for an aggregate of 293,040 shares of Holdings common stock). Upon completion of the short-form merger, Holdings owned 100% of the outstanding shares of AAC. The short-form merger was accounted for as an equity transaction in accordance with ASC 810, Consolidation

Other Revenue

Other Revenue	9 Months Ended
	Sep. 30, 2015
Health Care Organization Revenue [Abstract]
Other Revenue	4. Other Revenue Our other revenue consists of service charges from the delivery of quality targeted leads to behavioral and mental health service businesses through our operating subsidiary Referral Solutions Group, LLC, which was acquired on July 2, 2015. Revenue is recognized when persuasive evidence of an arrangement exists, services have been rendered, the fee for services is fixed or determinable, and collectability of the fee is reasonably assured.

General and Administrative Cost

General and Administrative Costs	9 Months Ended
	Sep. 30, 2015
General And Administrative Costs [Abstract]
General and Administrative Costs	5 . The majority of the Company’s expenses are “cost of revenue” items. Costs that could be classified as general and administrative expenses include the Company’s corporate overhead costs, which were $6.9 million and $13.4 million for the three months ended September 30, 2014 and 2015, respectively, and $18.6 million and $32.6 million for the nine months ended September 30, 2014 and 2015, respectively.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	6 . Earnings Per Share Earnings per share (“EPS”) is calculated using the two-class method required for participating securities. Undistributed earnings allocated to these participating securities are subtracted from net income in determining net income attributable to common stockholders. Net losses, if any, are not allocated to these participating securities. Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Common shares outstanding include both the common shares classified as mezzanine equity and those classified as equity. For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities, including awards under stock-based payment arrangements. Diluted EPS attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding during the period. The following tables reconcile the numerator and denominator used in the calculation of basic and diluted EPS for the three and nine months ended September 30, 2014 and 2015 (in thousands except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Numerator Net income attributable to AAC Holdings, Inc. $ 2,458 $ 2,452 $ 4,194 $ 10,726 Less: Series A Preferred Unit dividends (245 ) — (448 ) (147 ) Less: Redemption of BHR Series A Preferred Units — — — (534 ) Net income attributable to common shares $ 2,213 $ 2,452 $ 3,746 $ 10,045 Denominator Weighted-average shares outstanding – basic 15,598,396 21,922,374 15,161,266 21,471,063 Dilutive securities 15,984 108,759 84,492 180,591 Weighted-average shares outstanding – diluted 15,614,380 22,031,133 15,245,758 21,651,654 Basic earnings per share $ 0.14 $ 0.11 $ 0.25 $ 0.47 Diluted earnings per share $ 0.14 $ 0.11 $ 0.25 $ 0.46

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Acquisitions	7 . On February 20, 2015, the Company acquired certain assets of Recovery First, Inc. (“Recovery First”), a Florida-based provider of substance abuse treatment and rehabilitation services, for $13.1 million in cash and the assumption of certain liabilities. The purchase price was based upon arms-length negotiations between the Company and Recovery First, an unrelated third party, that resulted in a premium to the fair value of the net assets acquired (including identifiable intangible assets) and, correspondingly, the recognition of goodwill. The amount recorded for goodwill is consistent with the Company’s intentions for the acquisition and is deductible for income tax purposes. On April 17, 2015, the Company acquired certain assets of Clinical Services of Rhode Island, Inc. (“CSRI”), a provider of intensive outpatient substance abuse treatment services, for $0.7 million in cash and 42,460 in shares of Holdings’ common stock. The purchase price was based upon arms-length negotiations between the Company and CSRI, an unrelated third party, that resulted in a premium to the fair value of the net assets acquired and, correspondingly, the recognition of goodwill. The amount recorded for goodwill is consistent with the Company’s intentions for the acquisition and is deductible for income tax purposes. On July 2, 2015, the Company acquired RSG, a leading online publisher in the substance abuse treatment industry with a comprehensive portfolio of websites and marketing assets, for $32.5 million in cash and 540,193 in shares of Holdings’ common stock. On July 2, 2015, the Company acquired Taj Media, LLC (“Taj Media”), a premier digital marketing agency with addiction treatment industry expertise, for $2.2 million in cash and 37,253 in shares of Holdings’ common stock. On August 10, 2015, the Company acquired certain assets of The Oxford Centre, Inc. and its affiliates (“Oxford”), which operates a 76-bed residential facility located on a 110-acre campus in Etta, Mississippi, which is 65 miles southwest of Memphis, Tennessee, and three outpatient treatment locations in Oxford, Tupelo and Olive Branch, Mississippi Each of these acquisitions was accounted for as a business combination. The Company recorded each transaction based upon the fair value of the consideration paid. This consideration was preliminarily allocated to the assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values. The Company is further assessing the valuation of certain tax matters for all acquisitions, as well as certain receivables, assumed liabilities, and the valuation of real property and intangible assets of RSG, Taj Media, and Oxford, some of which are dependent on the completion of valuations being performed by independent valuation specialists. The preliminary fair values of assets acquired and liabilities assumed, at the corresponding acquisition dates, were as follows (in thousands): Recovery First CSRI RSG Taj Media Oxford Total Cash and cash equivalents $ — $ 27 $ — $ — $ — $ 27 Accounts receivable 750 — 580 — 5,023 6,353 Prepaid expenses and other assets 392 6 81 — 58 537 Property and equipment 1,415 3 15 34 6,196 7,663 Other assets — — 36 8 — 44 Goodwill 10,288 1,972 51,335 3,624 23,211 90,430 Intangible assets 300 — 4,816 293 650 6,059 Total Assets acquired 13,145 2,008 56,863 3,959 35,138 111,113 Accrued liabilities 43 — 210 52 138 443 Total liabilities assumed 43 — 210 52 138 443 Net assets acquired $ 13,102 $ 2,008 $ 56,653 $ 3,907 $ 35,000 $ 110,670 Acquisition-related costs for the acquisitions were expensed in acquisition-related expenses in the condensed consolidated statements of income. The following provides a breakdown of the identifiable intangible assets acquired in the above transactions, the valuation method applied in arriving at fair value, their assigned values and expected lives (in thousands, except years): Assigned Estimated Intangible Asset Valuation Method Value Life In Years Trademarks Relief from royalty 950 10 Marketing intangibles Relief from royalty 5,109 10 Total identified intangible assets $ 6,059 The results of operations for the acquired entities from the respective acquisition dates are included in the condensed consolidated statements of income for the nine months ended September 30, 2015, and include revenues of $11.1 million and income before income taxes of $3.3 million. The following presents the unaudited pro forma revenues and income before taxes of the combined entity had the acquisitions occurred on January 1, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Revenues $ 43,893 $ 58,517 $ 117,753 $ 171,559 Income before income taxes $ 6,958 $ 3,293 $ 23,043 $ 19,092

Accounts Receivable and Allowan

Accounts Receivable and Allowance for Doubtful Accounts	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Accounts Receivable and Allowance for Doubtful Accounts	8 . A summary of activity in the Company’s allowance for doubtful accounts is as follows (in thousands): Balance at December 31, 2014 $ 8,468 Additions charged to provision for doubtful accounts 12,925 Accounts written off, net of recoveries (7,804 ) Balance at September 30, 2015 $ 13,589 For the nine months ended September 30, 2014, approximately 15.9% of the Company’s revenues were reimbursed by Anthem Blue Cross Blue Shield of Colorado; 12.4% by Blue Cross Blue Shield of California For the nine months ended September 30, 2015, approximately 15.9% of the Company’s revenues were reimbursed by Anthem Blue Cross Blue Shield of Colorado; 13.2% by Blue Cross Blue Shield of Texas; 11.4% by Blue Cross Blue Shield of California, and 11.2% by Aetna. No other payor accounted for more than 10% of revenue reimbursements for the nine months ended September 30, 2015.

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2015
Property Plant And Equipment [Abstract]
Property and Equipment, net	9 . Property and equipment consisted of the following (in thousands): December 31, September 30, 2014 2015 Computer equipment and software $ 4,845 $ 10,957 Furniture and fixtures 4,535 6,193 Vehicles 834 1,124 Equipment under capital lease 1,777 1,207 Leasehold improvements 3,538 7,030 Construction in progress 19,410 45,743 Building 19,733 33,676 Land 2,538 3,158 Total property and equipment 57,210 109,088 Less accumulated depreciation and amortization (8,014 ) (12,061 ) $ 49,196 $ 97,027 Acquired Property On February 24, 2015, the Company purchased a piece of property including buildings, structures, and 96 acres of land in Ringwood, New Jersey for $6.4 million in cash and recorded the balance in construction in progress. The Company funded the purchase price from cash on hand with the intention of converting the property into a treatment center. On April 1, 2015, the Company acquired an 84-bed hospital in southern California for cash consideration of $13.5 million and recorded the balance in construction in progress. The Company funded the purchase price from cash on hand with the intention of converting the property into a chemical dependency recovery hospital.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	10 . Goodwill and Intangible Assets The Company’s business comprises a single reporting unit for impairment test purposes. The Company’s estimates of fair value are based on the income approach, which estimates the fair value of the Company based on its future discounted cash flows. In addition to an annual impairment review, impairment reviews are performed whenever circumstances indicate a possible impairment may exist. The Company performed its most recent goodwill impairment testing as of December 31, 2014 and did not incur an impairment charge. The Company’s goodwill balance as of December 31, 2014 and September 30, 2015 was $12.7 million and $103.1 million, respectively. The increase in goodwill relates to the acquisitions noted below and as discussed in Note 7. Balance at December 31, 2014 $ 12,702 Recovery First acquisition 10,288 CSRI acquisition 1,972 RSG acquisition 51,335 Taj Media acquisition 3,624 Oxford acquisition 23,211 Balance at September 30, 2015 $ 103,132 Other identifiable intangible assets and their assigned and related accumulated amortization consisted of the following as of December 31, 2014 and September 30, 2015 (in thousands): Gross Carrying Value Accumulated Amortization December 31, September 30, December 31, September 30, 2014 2015 2014 2015 Trademarks $ 2,682 $ 3,632 $ 626 $ 853 Non-compete agreements 1,257 1,257 587 775 Marketing intangibles 220 6,410 39 232 Other 51 51 23 28 $ 4,210 $ 11,350 $ 1,275 $ 1,888 Changes to the carrying value of identifiable intangible assets during the nine months ended September 30, 2015 were as follows (in thousands): Balance at December 31, 2014 $ 2,935 Amortization expense (613 ) Recovery First intangibles 300 Acquisition of marketing intangibles 1,081 RSG intangibles 4,816 Taj Media intangibles 293 Oxford intangibles 650 Balance at September 30, 2015 $ 9,462 On April 17, 2015, the Company acquired certain marketing assets with a value of $1.1 million for cash consideration of $0.5 million and 17,110 shares of the Company’s common stock, worth an estimated fair value of $0.5 million at the date of acquisition. The Company utilizes an estimated useful life of 10 years for marketing intangible assets.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	1 1 . Debt A summary of the Company’s debt obligations, net of unamortized discounts, is as follows (in thousands): December 31, September 30, 2014 2015 Non-related party debt: Senior secured loans, net of issuance costs $ — $ 119,803 Real estate debt 24,590 — Asset purchases 126 22 Subordinated debt 708 — Capital lease obligations 1,243 546 Total non-related party debt 26,667 120,371 Less current portion (2,570 ) (3,661 ) Total non-related party debt, long-term $ 24,097 $ 116,710 Related party debt: Acquisition-related debt $ 1,787 $ 1,195 Subordinated debt 187 — Total related party debt 1,974 1,195 Less current portion (1,787 ) (1,195 ) Total related party debt, long-term $ 187 $ — Credit Facility The Company’s prior credit facility borrowing base provided for borrowings up to the lesser of (i) $20 million or (ii) 80% of the Company’s eligible accounts receivable at any time prior to February 1, 2014, and 70% of the Company’s eligible accounts receivable at any time on or after February 1, 2014, subject to adjustment if the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three months is less than 8% of the Company’s gross revenues for such period. The prior credit facility was secured by the Company’s accounts receivable, deposit accounts and other rights to payment, inventory, and equipment, and was guaranteed jointly and severally by all of the Company’s subsidiaries that have significant operations and/or assets and the Company’s CEO and President. The prior credit facility, as amended, required the Company to maintain a tangible net worth ratio not greater than 2.50 to 1.00, a fixed charge coverage ratio not less than 1.25 to 1.00, and net income of at least $1.00, all determined as of each quarter end. The prior credit facility limited capital expenditures to $0.1 million in each fiscal year unless approved by the financial institution, limited additional borrowing to $50,000 during the term of the agreement unless approved by the financial institution, limited operating lease expense to $0.1 million in each fiscal year and prohibited the payment of dividends in cash or stock. The prior credit facility also contained a cross-default clause linking a default under the prior credit facility to the occurrence of a default by the Company under any other debt agreement, material lease commitment, contract, instrument or obligation. The Company was not in compliance with certain financial covenants contained in the prior credit facility as of March 31, 2014. These covenant violations created a cross-default under the debt agreements between the same lender and each of Greenhouse Real Estate, LLC (“Greenhouse Real Estate”), Concorde Real Estate, LLC (“Concorde Real Estate”), and The Academy Real Estate, LLC (“Academy Real Estate”), but for which the Company obtained waivers. On April 15, 2014, the Company’s prior credit facility was amended and restated and included a waiver for the noncompliance with the financial covenants and negative covenants described in the preceding paragraphs. On April 15, 2014, the Company entered into a Second Amended and Restated Credit Facility (the “2014 Credit Facility”) with Wells Fargo Bank, National Association. The 2014 Credit Facility made available to the Company a $15.0 million revolving line of credit, subject to borrowing base limitations (the “Amended Revolving Line”), and amended and restated two existing term loans in the outstanding principal amounts of $0.6 million (“Term Loan A”) and $1.5 million (“Term Loan B”). In June 2014, the Company repaid in full the $1.5 million outstanding balance of Term Loan B. The Amended Revolving Line bore interest at one-month LIBOR, plus an applicable margin that was determined by the Company’s leverage ratio, as defined by the agreement, at the end of each quarter. A quarter-end leverage ratio of 4.75 to 1.00 or above resulted in an applicable margin of 3.00%, a ratio below 4.75 to 1.00 and equal to or above 4.00 to 1.00 results in an applicable margin of 2.75%, and a ratio below 4.00 to 1.00 results in an applicable margin of 2.50%. Term Loan A bore interest at LIBOR plus 3.15%. The borrowing base for the Amended Revolving Line was 70% of the Company’s eligible accounts receivable and was established with the understanding that the aggregate of all returns, rebates, discounts, credits and allowances, exclusive of the initial adjustment to record net revenues at the time of billing, for the immediately preceding three months will be less than 20% of gross revenues for such period (up from the previous restriction of 8%). On December 18, 2014, the Company terminated the 2014 Credit Facility, after having repaid the then outstanding principal balance of $487,500 plus accrued interest. The 2014 Credit Agreement also included one outstanding term loan in the outstanding principal amount of $0.5 million. The Company did not incur any early termination penalties as a result of the early termination of the 2014 Credit Facility. On March 9, 2015, the Company entered into a five year $125.0 million senior secured credit facility (the “2015 Credit Facility”) with Bank of America, N.A., as administrative agent for the lenders party thereto. The 2015 Credit Facility consists of a $50.0 million revolver and a $75.0 million term loan. The Company used the proceeds to re-pay certain existing indebtedness, fund acquisitions and de novo treatment facilities and for general corporate purposes. The 2015 Credit Facility also has an accordion feature that allows the total borrowing capacity to be increased up to $200 million, subject to certain conditions, including obtaining additional commitments from lenders. On June 16, 2015, the Company amended the 2015 Credit Facility to remove from the definition of “change of control” what is often referred to as a “dead hand proxy put” provision. The 2015 Credit Facility requires quarterly term loan principal repayments for the outstanding term loan of $0.9 million from September 30, 2015 to December 31, 2016, $1.4 million for March 31, 2017 to December 31, 2017, $2.3 million from March 31, 2018 to December 31, 2018, and $2.8 million from March 31, 2019 to December 31, 2019, with the remaining principal balance of the term loan due on the maturity date of March 9, 2020. Repayment of the revolving loan is due on the maturity date of March 9, 2020. The 2015 Credit Facility generally requires quarterly interest payments. Borrowings under the 2015 Credit Facility are guaranteed by the Company and each of its subsidiaries and are secured by a lien on substantially all of the Company’s and its subsidiaries’ assets. Borrowings under the 2015 Credit Facility bear interest at a rate tied to the Company’s Consolidated Total Leverage Ratio (defined as Consolidated Funded Indebtedness to Consolidated EBITDA, in each case as defined in the credit agreement). Eurodollar Rate Loans with respect to the 2015 Credit Facility bear interest at the Applicable Rate plus the Eurodollar Rate (each as defined in the credit agreement) (based upon the LIBOR Rate (as defined in the credit agreement) prior to commencement of the interest rate period). Base Rate Loans with respect to the 2015 Credit Facility bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0% (the interest rate at September 30, 2015 was 2.83%). In addition, the Company is required to pay a commitment fee on undrawn amounts under the revolving credit facility of 0.35% to 0.50% depending on the Company’s Consolidated Total Leverage Ratio (the commitment fee rate at September 30, 2015 was 0.35%). The Applicable Rates and the unused commitment fees of the 2015 Credit Facility are based upon the following tiers: Pricing Tier Consolidated Total Leverage Ratio Eurodollar Rate Loans Base Rate Loans Commitment Fee 1 > 3.25 % 2.25 % 0.50 % 2 > 3.00 % 2.00 % 0.45 % 3 > 2.75 % 1.75 % 0.40 % 4 > 2.50 % 1.50 % 0.35 % 5 < 2.00:1.00 2.25 % 1.25 % 0.35 % The 2015 Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants, including a Consolidated Fixed Charge Coverage Ratio, Consolidated Total Leverage Ratio and a Consolidated Senior Secured Leverage Ratio (each as defined in the credit agreement). The Company may be required to pay all of its indebtedness immediately if the Company defaults on any of the financial or other restrictive covenants contained in the 2015 Credit Facility. The financial covenants include maintenance of the following: · Fixed Charge Coverage Ratio may not be less than 1.50:1.00 as of the end of any fiscal quarter. · Consolidated Total Leverage Ratio: may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Total Leverage Ratio September 30, 2015 4.50:1.00 December 31, 2015 4.50:1.00 March 31, 2016 4.50:1.00 June 30, 2016 4.25:1.00 September 30, 2016 4.25:1.00 December 31, 2016 4.25:1.00 March 31, 2017 and each fiscal quarter thereafter 4.00:1.00 · Consolidated Senior Secured Leverage Ratio may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Senior Secured Leverage Ratio September 30, 2015 4.00:1.00 December 31, 2015 4.00:1.00 March 31, 2016 4.00:1.00 June 30, 2016 3.75:1.00 September 30, 2016 3.75:1.00 December 31, 2016 3.75:1.00 March 31, 2017 and each fiscal quarter thereafter 3.50:1.00 At September 30, 2015, the Company was in compliance with all applicable covenants. The Company incurred approximately $1.4 million in debt issuance costs related to underwriting and other professional fees, and deferred these costs over the term of the 2015 Credit Facility. Additionally, the Company used approximately $24.9 million of the proceeds from the $75.0 million term loan to repay in full the outstanding real estate debt, certain equipment notes and certain capital leases. The Company did not incur any significant early termination fees. On July 1, 2015, the Company borrowed $15.0 million under the $50.0 million revolver of the 2015 Credit Facility. The Company used the proceeds to fund de novo development projects and acquisitions. On August 7, 2015, the Company borrowed $32.0 million under the $50.0 million revolver of the 2015 Credit Facility. The Company used the proceeds to fund de novo development projects and acquisitions. As of September 30, 2015, our availability under the $50.0 million revolver portion of the 2015 Credit Facility was $1.0 million, net of $47.0 million in borrowings as noted above, and $2.0 million in standby letters of credit issued for various corporate purposes. Interest Rate Swap Agreements In July 2014, the Company entered into two interest rate swap agreements to mitigate its exposure to fluctuations in interest rates. The interest rate swap agreements had initial notional amounts of $8.9 million and $13.2 million which fix interest rates over the life of the respective interest rate swap agreement at 4.21% and 4.73%, respectively. The notional amounts of the swap agreements represent amounts used to calculate the exchange of cash flows and are not the Company’s assets or liabilities. The interest payments under these agreements are settled on a net basis. The Company has not designated the interest rate swaps as cash flow hedges and therefore the changes in the fair value of the interest rate swaps are included within interest expense in the condensed consolidated statements of income. The fair value of the interest rate swaps at December 31, 2014 and September 30, 2015 represented a liability of $431,000 and $683,000, respectively, and is reflected in other long-term liabilities on the condensed consolidated balance sheets. Refer to Note 15 for further discussion of fair value of the interest rate swap agreements. The Company’s credit risk related to these agreements is considered low because the swap agreements are with a creditworthy financial institution. The following table sets forth our interest rate swap agreements at September 30, 2015 (dollars in thousands): Notional Maturity Fair Amount Date Value Pay-fixed interest rate swap $ 8,137 May 2018 $ (188 ) Pay-fixed interest rate swap 11,820 August 2019 (495 ) Total $ 19,957 $ (683 ) Real Estate Debt As discussed in Note 3, on April 15, 2014, the Company acquired BHR and assumed a $1.8 million term loan, which was subsequently paid off in 2014 with proceeds from the Company’s initial public offering. The Company’s total real estate debt totaled $24.6 million at December 31, 2014. The terms of the debt are discussed below. On March 9, 2015, the Company repaid in full all outstanding real estate debt as discussed further below. The Company did not incur any early termination penalties in the repayment of the notes. Concorde Real Estate In conjunction with the consolidation of Concorde Real Estate on June 27, 2012, the Company assumed a $3.5 million promissory note which was refinanced in July 2012 and replaced with loans totaling $7.4 million in two tranches to fund the renovation of the Desert Hope facility. The first tranche totaled $4.4 million and bore interest at 3.0% plus one-month LIBOR, with interest payable monthly, and required a lump sum principal payment in July 2013. The second tranche totaled $3.0 million, bore interest at 2.0% plus the lender’s prime rate (3.25% at December 31, 2012), with interest payable monthly, and required a lump sum principal payment in July 2013. In May 2013, Concorde Real Estate refinanced these two outstanding loans with a $9.6 million note payable that matured on May 15, 2018. The additional debt in 2013 was used to redeem the preferred membership interests in Concorde Real Estate. The note required monthly principal payments of $53,228 plus interest and a balloon payment of $6.6 million due at maturity. Interest was calculated based on a 360 day year and accrued at the Company’s option of either (i) one-month LIBOR (as defined in the agreement) plus 2.5%, with such rate fixed until the next monthly reset date, or (ii) floating at one-month LIBOR (as defined in the agreement) plus 2.5%. In the event that the Company elected the floating option for either two consecutive periods or a total of three periods, the floating rate increased by 0.25%. The interest rate at December 31, 2014 was 2.67% and the amount outstanding at December 31, 2014 was $8.6 million. The Company repaid this note in full on March 9, 2015 for its stated outstanding principal balance and did not incur any early termination fees. The note was guaranteed by the Company and its CEO and President and was secured by a deed of trust and the assignment of certain leases and rents. The note contained financial covenants that require the Company to maintain a fixed charge coverage ratio of not less than 1.25 to 1.00. The note also contained a cross-default clause linking a default under the note to the occurrence of a default by any guarantor or an affiliate of a guarantor with respect to any other indebtedness. Greenhouse Real Estate Greenhouse Real Estate entered into a $13.2 million construction loan facility (the “Construction Facility”) with a financial institution on October 8, 2013 to refinance existing debt related to a 70-bed facility and to fund the construction of an additional 60 beds at this facility located in Grand Prairie, Texas. Monthly draws could be made against the Construction Facility based on actual construction costs incurred. Interest, which was payable monthly, was calculated based on a 360 day year and accrued at the Company’s option of either (i) one-month LIBOR (as defined in the agreement) plus 3.0%, with such rate fixed until the next monthly reset date, or (ii) floating at one-month LIBOR (as defined in the agreement) plus 3.0%. In the event that the Company elected the floating option for either two consecutive periods or a total of three periods, the floating rate increased by 0.25%. At Greenhouse Real Estate’s option, the Construction Facility was convertible to a permanent term loan with an extended maturity of October 31, 2019 provided (i) there was no default, (ii) the construction was 100% complete, (iii) there was no material adverse change, as determined by the financial institution in its sole discretion, in the financial condition of Greenhouse Real Estate and (iv) other terms and conditions were satisfied. The maximum amount that may be converted was 65% of the appraised value at the time of the conversion. If at the time of the conversion the loan value exceeded the 65% loan-to-value ratio, Greenhouse Real Estate was permitted to make principal payments to reduce the loan-to-value to the 65% threshold. In the event Greenhouse Real Estate did not elect to or was unable to convert the Construction Facility to a permanent term loan, Greenhouse Real Estate was required to pay an exit fee equal to 3.0% of the then outstanding balance. Principal payments at the time of the conversion were to be calculated based on a 15-year amortization schedule, and monthly principal and interest payments are required with a balloon payment at maturity. The Construction Facility was secured by a deed of trust and the assignment of certain leases and rents and was guaranteed by the Company and the CEO and President of the Company. Greenhouse Real Estate was required to maintain a minimum debt service coverage ratio of 1.25 to 1.00. The note also contained a cross-default clause linking a default under the Greenhouse Real Estate loan to the occurrence of a default by any guarantor or an affiliate of a guarantor with respect to any other indebtedness. In August 2014, the outstanding balance of the construction loan was converted to a $12.7 million permanent loan that matured in August 2019 and had an annual interest rate equal to the one-month LIBOR plus 2.5%. The permanent loan required monthly principal payments of $70,778 plus interest and a balloon payment of $8.5 million at maturity. The outstanding balance at December 31, 2014 was $12.5 million and the interest rate was 2.67%. The Company repaid this note in full on March 9, 2015 for its stated outstanding principal balance and did not incur any early termination fees. Academy Real Estate In May 2013, the Company, through Academy Real Estate, obtained a $3.6 million note payable (the “Academy Loan”) from a financial institution to fund a portion of the acquisition of the property located in Riverview, Florida (just outside of Tampa, Florida). The note payable matured on November 10, 2013 and was renewed under identical terms. In connection with the Company’s sale to BHR of its membership interests of Academy Real Estate on December 10, 2013, BHR assumed the $3.6 million note payable. Interest, which was payable monthly, was calculated based on a 360 day year and accrued at the Company’s option of either (i) one-month LIBOR (as defined in the agreement) plus 3.0%, with such rate fixed until the next monthly reset date or (ii) floating at one-month LIBOR (as defined in the agreement) plus 3.0%. In the event that the Company elected the floating option for either two consecutive periods or a total of three periods, the floating rate increases by 0.25%. In April 2014, the Company effected an amendment to the Academy Loan to extend the maturity date to July 14, 2019. Under the amended Academy Loan, the Company made monthly principal payments of $30,000 plus interest commencing in October 2014 and a balloon payment of remaining unpaid principal of $1.9 million at the maturity date. The agreement required the Company to maintain a minimum fixed charge coverage ratio of 1.25 to 1.00 and contains other restrictive financial covenants. The agreement also contained a cross-default clause linking a default under the Academy Real Estate note to the occurrence of a default by any guarantor or an affiliate of a guarantor with respect to any other indebtedness. The outstanding balance at December 31, 2014 was $3.5 million and the interest rate was 3.17%. The Company repaid this note in full on March 9, 2015 for its stated outstanding principal balance and did not incur any early termination fees. At December 31, 2013 and 2014, the Company was in compliance with the financial covenants of the BHR debt. The instances of noncompliance under its prior credit facility created a cross-default with the Construction Facility, the Concorde Real Estate note payable and the Academy Real Estate note payable. The Company obtained a waiver for the covenant defaults under its prior credit facility for 2012, and the amendment and restatement of its prior credit facility in April 2014 included a waiver for the noncompliance of the financial covenants and negative covenants that occurred under the prior credit facility in 2013 and the quarter ended March 31, 2014. The Company also obtained waivers for the cross-defaults under the Construction Facility, the Concorde Real Estate note payable and the Academy Real Estate note payable. Behavioral Healthcare Realty, LLC As discussed in Note 3, the Company assumed a $1.7 million term loan in conjunction with the acquisition of BHR. The Company refinanced this loan with a financial institution and the new loan required monthly principal payments of $35,855 plus interest at 5.0% with a balloon payment of $1.4 million due at maturity in April 2015. The Company used a portion of the net proceeds from the IPO received in October 2014 to repay in full the outstanding balance of the term loan of $1.6 million on October 7, 2014. Acquisition Related Debt On August 31, 2012 The Company financed a portion of the TSN Acquisition with the following sources of debt. The Company entered into a $6.2 million subordinated note payable with the TSN Sellers. Under the terms of the agreement, the note is separated into the following tranches: (i) $2.2 million paid in equal monthly principal installments over 36 months, bearing interest at 5% per annum, (ii) $2.5 million due on August 31, 2015 (the “Balloon Payment”), bearing interest at 3.125% per annum and (iii) a contingent balloon payment of up to $1.5 million due on August 31, 2015 (the “Contingent Payment”), bearing interest at 3.125% per annum. The Contingent Payment is contingent on the achievement of certain performance metrics over the term of the note. Due to the contingent nature of the Contingent Payment, a discount of approximately 13% was applied to the Contingent Payment to reflect the weighted-average probability the Contingent Payment would not be made. In April 2013, $0.5 million outstanding under the Balloon Payment was converted into 95,451 shares of the Company’s common stock at a conversion price of $5.24 per share. The Company estimates the fair value of the Contingent Payment each reporting period through an analysis of the TSN Sellers’ estimated achievement of the performance metrics specified in the agreement. Based upon this analysis, the Company determined a claw back of $0.5 million of the Contingent Payment existed at December 31, 2013 and, accordingly, adjusted the outstanding balance of the Balloon Payment to $3.0 million at that date. In addition to the claw back on the Contingent Payment, the Company has included a reduction of 118,576 shares of common stock in the computation of its earnings per share for the year ended December 31, 2013 to reflect the claw back of those shares based upon this analysis. On August 15, 2014, the Company entered into two settlement agreements with one of the TSN Sellers. Pursuant to the terms of the settlement agreements, the Company agreed to pay $7.6 million in exchange for full and final satisfaction of all obligations to the party. As a result, the Company repaid $0.2 million of the note payable and $1.5 million of Balloon Payment. On August 31, 2015, the Company paid in full the remaining note payable balance and entered into an amendment on the Balloon Payment with the remaining party of the TSN Sellers. Under the modified note, the Company made a principal payment of $0.3 million at the date of execution, extended the maturity date to February 29, 2016, and increased the interest rate to 6.25% per annum. At December 31, 2014 and September 30, 2015, the outstanding balance remaining under the seller subordinated notes payable was $1.8 million and $1.2 million, respectively. Subordinated Debt Issued with Detachable Warrants (Related Party and Non-related Party) In March and April 2012, the Company issued $1.0 million of subordinated promissory notes, of which $0.2 million was issued to a director of the Company. The notes bore interest at 12% per annum. The notes were scheduled to mature at various dates throughout 2015 and 2017. Interest was payable monthly and the principal amount was due, in full, on the applicable maturity date of the note. In connection with the issuance of these notes, the Company issued detachable warrants to the lenders to purchase a total of 112,658 shares of common stock of AAC at $0.64 per share. The warrants were exercisable at any time up to their expiration on March 31, 2022. The Company recorded a debt discount of $0.1 million related to the warrants which reduced the carrying value of the subordinated notes. As of December 31, 2014, the outstanding balance of the notes, net of the unamortized debt discount of $55,000, was $0.9 million, of which $0.2 million was owed to a director of the Company. On February 27, 2015, the Company repaid in full the $1.0 million of the outstanding subordinated promissory notes. The Company did not incur any early termination fees. The Company calculated the fair value of warrants issued with the subordinated notes using the Black-Scholes valuation method. The following assumptions were used to value the warrants: a stock price of $1.36, an exercise price of $0.64, expected life of 10 years, expected volatility of 20%, risk free interest rates ranging from 2.1% to 4.0% and no expected dividend yield. In March 2014, warrants representing the right to purchase 106,728 shares of common stock of AAC were exercised and a total of 106,728 shares of common stock of AAC were issued to the exercising warrant holders, including 23,717 shares to a director of the Company.

Equity

Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Equity	1 2 . Equity Mezzanine Equity Changes to mezzanine amounts during the nine months ended September 30, 2015 were as follows (dollars in thousands): Noncontrolling Interest BHR Series A Preferred Units Amount Balance at December 31, 2014 160 $ 7,848 Redemption of Series A Preferred Units from Alcentra (160 ) (7,848 ) Balance at September 30, 2015 — $ — On February 25, 2015, the Company exercised its call provision and redeemed 100% of the outstanding Series A Preferred Units for a total redemption price of approximately $8.5 million which included $0.2 million for the 3.0% call premium and $0.3 million for unpaid preferred returns. Stock Based Compensation Plans In March 2014, the Company granted 5,834 shares of fully vested common stock of AAC to each of its five non-employee directors. The Company recognized $0.2 million of compensation expense in the first quarter of 2014 as a result of these grants. The fair value on the award date was $8.12 per share, as estimated by the Company’s management. On April 11, 2014, the Company granted a total of 82,509 shares of restricted common stock of AAC to two employees. The fair value on the award date was $8.12 per share. On October 7, 2014, the Company granted a total of 158,000 shares of restricted common stock to employees as part of the Company’s 2014 Equity Incentive Plan. On January 7, 2015, the Company granted a total of 400,000 shares of restricted common stock to employees as part of the Company’s 2014 Equity Incentive Plan. On January 8, 2015, the Company granted 2,544 shares of fully vested common stock to each of its five non-employee directors. The Company recognized $- million and $0.4 million of compensation expense for the three and nine months ended September 30, 2015, respectively, as a result of these grants. The fair value on the award date was $29.37 per share based on the closing market value. On May 19, 2015, the Company’s shareholders approved the Company’s Employee Stock Purchase Plan (“ESPP”). The ESPP enables eligible employees to purchase shares of the Company’s common stock through a payroll deduction during certain option periods, generally commencing on January 1 and July 1 of each year and ending on June 30 and December 31 of each year. On the exercise date (the last trading day of each option period), the cumulative amount deducted from each participant’s salary during that option period will be used to purchase the maximum number of shares of the Company’s common stock at a purchase price equal to the lesser of (i) 85% of the closing market price of our Common Stock as quoted on the New York Stock Exchange on the exercise date or (ii) 85% of the closing market price of the Company’s common stock as quoted on the New York Stock Exchange on the grant date, subject to certain limitations and restrictions. In July 2015, the Company issued 12,637 shares of the Company’s common stock at a stock price of $25.68 in connection with employee deductions of $0.3 million contributed in the January 1, 2015 through June 30, 2015 ESPP option period. For the three and nine months ended September 30, 2015, the Company recognized $45,000 and $168,000, respectively, of compensation expense related to the ESPP. The Company recognized $0.4 million and $1.3 million in equity-based compensation expense for the three months ended September 30, 2014 and 2015, respectively, and $1.2 million and $4.1 million for the nine months ended September 30, 2014 and 2015, respectively. As of September 30, 2015, there was $11.6 million of unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over the remaining weighted average vesting period of 2.9 years. A summary of share activity under the Company’s 2014 Equity Incentive Plan is set forth below: Weighted- average Grant Shares Date Fair Value Unvested at December 31, 2014 196,882 $ 18.53 Granted 415,894 28.79 Vested (151,608 ) 21.61 Forfeitures (15,500 ) 25.00 Unvested at September 30, 2015 445,668 $ 26.12

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	1 3 . Income Taxes The provision for income taxes for the three and nine months ended September 30, 2014 reflects an effective tax rate of 42.7% and 43.4%, respectively, compared to an effective tax rate for the three and nine months ended September 30, 2015 of 27.0% and 35.8%, respectively. The decrease in effective tax rate for the three and nine months ended September 30, 2015 compared to the three and nine months ended September 30, 2014 was primarily attributable to a discrete item related to certain state income tax incentives recognized during the third quarter of 2015.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Parties	1 4 . Related Parties An entity beneficially owned by Mr. Cartwright, our Chief Executive Officer, owns an airplane that the Company uses for business purposes in the course of its operations pursuant to a written lease agreement. The Company pays an hourly rate for use of the airplane as well as fuel and certain maintenance costs. For the three and nine months ended September 30, 2015, the Company made aggregate payments to the related entity for use of the airplane of approximately $0.3 million and $0.7 million, respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	1 5 . Fair Value of Financial Instruments The carrying amounts reported at December 31, 2014 and September 30, 2015 for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value because of the short-term maturity of these instruments and are categorized as Level 1 within the GAAP fair value hierarchy. The carrying amount of the Company’s debt approximates fair value because interest rates approximate the current rates available to the Company. The Company has debt with variable and fixed interest rates. The fair value of debt with fixed interest rates was determined using the quoted market prices of debt instruments with similar terms and maturities, which are considered Level 2 inputs. The fair value of debt with variable interest rates was also measured using Level 2 inputs, including good faith estimates of the market value for the particular debt instrument, which represent the amount an independent market participant would provide, based upon market observations and other factors relevant under the circumstances. The carrying value of such debt approximated its estimated fair value at December 31, 2014 and September 30, 2015. The Company has entered into interest rate swap agreements to manage exposure to fluctuations in interest rates. Fair value of the interest rate swaps is determined using a pricing model based on published interest rates and other observable market data. The fair value was determined after considering the potential impact of collateralization, adjusted to reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk. The fair value measurement of interest rate swaps utilizes Level 2 inputs. At September 30, 2015, the fair value of the interest rate swaps represented a liability of $0.7 million. Refer to Note 11 for further discussion of the interest rate swap agreements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	1 6 . Commitments and Contingencies Horizon Blue Cross Blue Shield of New Jersey v. Avee Laboratories et al. On September 4, 2013, Horizon Blue Cross Blue Shield of New Jersey (“Horizon”) filed an amended complaint in the Superior Court of New Jersey against several defendants, including Leading Edge Recovery Center, LLC, one of the Company’s subsidiaries. Leading Edge Recovery Center, LLC formerly operated a drug and alcohol treatment facility in New Jersey. Horizon alleges the defendants submitted and caused others to submit unnecessary drug tests in violation of New Jersey law and is seeking recovery for monetary and treble damages. The parties have reached a confidential settlement in this matter and consider it closed. The Company recognized $1.5 million in reserves related to this matter in the second quarter of 2015, and increased the reserve amount by $0.7 million to $2.2 million as of September 30, 2015. State of California On July 29, 2015, the Superior Court of the State of California court unsealed a criminal indictment returned by a grand jury against our subsidiaries ABTTC, Inc. dba A Better Tomorrow Treatment Centers, Forterus, Inc. and Forterus Health Care Services, Inc., Jerrod N. Menz, our former President and former member of our Board of Directors, as well as a current facility-level employee and three former employees. The indictment was returned in connection with a criminal investigation by the California Department of Justice and charged the defendants with second-degree murder and dependent adult abuse in connection with the death of a client in 2010 at one of our former locations. We believe the allegations are legally and factually unfounded and intend to contest them vigorously. Given the early stage of this proceeding, we cannot estimate the amount or range of loss if the defendants were to be convicted; however, such loss could be material. Kasper v. AAC Holdings, Inc. et al. and Tenzyk c. AAC Holdings, Inc. et al. On August 24, 2015, a shareholder filed a purported class action in the United States District Court for the Middle District of Tennessee against the Company and certain of its current and former officers. The plaintiff generally alleges that the Company and certain of its current and former officers violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making allegedly false and/or misleading statements and failing to disclose certain information. On September 14, 2015, a second class action against the same defendants asserting essentially the same allegations was filed in the same court. On October 26, 2015, the court entered an order consolidating these two described actions into one action. The Company intends to defend this action vigorously. At this time the Company cannot predict the results of litigation with certainty, and cannot estimate the amount or range of loss, if any. The Company believes the disposition of this action will not have a material adverse effect on its consolidated results of operations or consolidated financial position. Other The Company is aware of various other legal matters arising in the ordinary course of business. To cover these types of claims, the Company maintains insurance it believes to be sufficient for its operations, although some claims may potentially exceed the scope of coverage in effect. Plaintiffs in these matters may request punitive or other damages that may not be covered by insurance. After taking into consideration the evaluation of such matters by the Company’s legal counsel, the Company’s management believes the outcome of these matters will not have a material impact on the Company’s consolidated financial position, results of operations and cash flows.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	1 7 . Subsequent Events On October 1, 2015, the Company completed the acquisition of the assets of Sunrise House Foundation, Inc., a non-profit corporation operating a 110-bed substance abuse treatment center, 30 halfway house beds and two outpatient programs all in Western New Jersey, for a total purchase price of $6.6 million in cash. On October 2, 2015, the Company completed the closing of two financing facilities with affiliates of Deerfield Management Company, L.P. (“Deerfield”). The capital commitment consists of $25.0 million of subordinated convertible debt and up to $25.0 million of unsecured subordinated debt, together with an incremental facility of up to an additional $50.0 million of subordinated convertible debt (subject to certain conditions). The Company drew down $25.0 million of subordinated convertible debt at closing and will use the proceeds to fund its active acquisition strategy, its de novo pipeline and for other corporate purposes. The $25.0 million of subordinated convertible debt bears interest at an annual rate of 2.50% and matures on September 30, 2021. The $25.0 million of subordinated convertible debt funded at closing is convertible into shares of the Company’s common stock at $30.00 per share. The Company may borrow up to $25.0 million of unsecured subordinated debt that will bear interest at an annual rate of 12.0% and mature on September 30, 2020. The $25.0 million of unsecured subordinated debt may be drawn for acquisition financing through September 30, 2016 and can be repaid under certain conditions without penalty prior to October 2, 2017. On October 16, 2015, the Company began treating clients at its River Oaks facility, a 162-bed residential treatment center located near Tampa, Florida after completing construction and receiving licensure. The total construction cost of the River Oaks facility was $18.8 million.

Basis of Presentation and Rec25

Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Recent Pronouncements	Recent Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. Companies across all industries will use a new five-step model to recognize revenue from customer contracts. The new standard, which replaces nearly all existing GAAP and International Financial Reporting Standards revenue recognition guidance, will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The standard is effective for public entities for annual and interim periods beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this standard will have on its revenue recognition policies and procedures, financial position, result of operations, cash flows, financial disclosures and control framework. In March 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and those interim periods within those fiscal years, with early adoption permitted. The update requires debt issuance costs related to a note to be reported in the balance sheet as a direct deduction from the face amount of that note on a retrospective basis upon adoption. The Company determined to early adopt the revised guidance and presented $1.4 million of deferred debt issuance costs associated with the Company’s 2015 Credit Facility (as later defined) net of the debt balance at September 30, 2015 (see Note 11). The impact on prior periods was not material. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years. The Company does not expect the adoption of ASU 2015-16 will have a material impact on its results of operations.

Reorganization Transactions (Ta

Reorganization Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date	This consideration was allocated to the assets acquired and liabilities assumed at the acquisition date based on their fair values as follows (in thousands): Cash $ 149 Accounts receivable 452 Property and equipment 91 Goodwill 1,810 Total assets acquired 2,502 Accrued liabilities 2 Total liabilities assumed 2 Net assets acquired $ 2,500

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings Per Share	The following tables reconcile the numerator and denominator used in the calculation of basic and diluted EPS for the three and nine months ended September 30, 2014 and 2015 (in thousands except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Numerator Net income attributable to AAC Holdings, Inc. $ 2,458 $ 2,452 $ 4,194 $ 10,726 Less: Series A Preferred Unit dividends (245 ) — (448 ) (147 ) Less: Redemption of BHR Series A Preferred Units — — — (534 ) Net income attributable to common shares $ 2,213 $ 2,452 $ 3,746 $ 10,045 Denominator Weighted-average shares outstanding – basic 15,598,396 21,922,374 15,161,266 21,471,063 Dilutive securities 15,984 108,759 84,492 180,591 Weighted-average shares outstanding – diluted 15,614,380 22,031,133 15,245,758 21,651,654 Basic earnings per share $ 0.14 $ 0.11 $ 0.25 $ 0.47 Diluted earnings per share $ 0.14 $ 0.11 $ 0.25 $ 0.46

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2015
Business Acquisition [Line Items]
Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date	This consideration was allocated to the assets acquired and liabilities assumed at the acquisition date based on their fair values as follows (in thousands): Cash $ 149 Accounts receivable 452 Property and equipment 91 Goodwill 1,810 Total assets acquired 2,502 Accrued liabilities 2 Total liabilities assumed 2 Net assets acquired $ 2,500
Schedule of Breakdown of Identifiable Intangible Assets, Valuation Method	The following provides a breakdown of the identifiable intangible assets acquired in the above transactions, the valuation method applied in arriving at fair value, their assigned values and expected lives (in thousands, except years): Assigned Estimated Intangible Asset Valuation Method Value Life In Years Trademarks Relief from royalty 950 10 Marketing intangibles Relief from royalty 5,109 10 Total identified intangible assets $ 6,059
Schedule of Revenues and Income Before Income Taxes	The following presents the unaudited pro forma revenues and income before taxes of the combined entity had the acquisitions occurred on January 1, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Revenues $ 43,893 $ 58,517 $ 117,753 $ 171,559 Income before income taxes $ 6,958 $ 3,293 $ 23,043 $ 19,092
Recovery First Inc. and CSRI
Business Acquisition [Line Items]
Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date	This consideration was preliminarily allocated to the assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values. The Company is further assessing the valuation of certain tax matters for all acquisitions, as well as certain receivables, assumed liabilities, and the valuation of real property and intangible assets of RSG, Taj Media, and Oxford, some of which are dependent on the completion of valuations being performed by independent valuation specialists. The preliminary fair values of assets acquired and liabilities assumed, at the corresponding acquisition dates, were as follows (in thousands): Recovery First CSRI RSG Taj Media Oxford Total Cash and cash equivalents $ — $ 27 $ — $ — $ — $ 27 Accounts receivable 750 — 580 — 5,023 6,353 Prepaid expenses and other assets 392 6 81 — 58 537 Property and equipment 1,415 3 15 34 6,196 7,663 Other assets — — 36 8 — 44 Goodwill 10,288 1,972 51,335 3,624 23,211 90,430 Intangible assets 300 — 4,816 293 650 6,059 Total Assets acquired 13,145 2,008 56,863 3,959 35,138 111,113 Accrued liabilities 43 — 210 52 138 443 Total liabilities assumed 43 — 210 52 138 443 Net assets acquired $ 13,102 $ 2,008 $ 56,653 $ 3,907 $ 35,000 $ 110,670

Accounts Receivable and Allow29

Accounts Receivable and Allowance for Doubtful Accounts (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Summary of Allowance for Doubtful Accounts	A summary of activity in the Company’s allowance for doubtful accounts is as follows (in thousands): Balance at December 31, 2014 $ 8,468 Additions charged to provision for doubtful accounts 12,925 Accounts written off, net of recoveries (7,804 ) Balance at September 30, 2015 $ 13,589

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2015
Property Plant And Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following (in thousands): December 31, September 30, 2014 2015 Computer equipment and software $ 4,845 $ 10,957 Furniture and fixtures 4,535 6,193 Vehicles 834 1,124 Equipment under capital lease 1,777 1,207 Leasehold improvements 3,538 7,030 Construction in progress 19,410 45,743 Building 19,733 33,676 Land 2,538 3,158 Total property and equipment 57,210 109,088 Less accumulated depreciation and amortization (8,014 ) (12,061 ) $ 49,196 $ 97,027

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The increase in goodwill relates to the acquisitions noted below and as discussed in Note 7. Balance at December 31, 2014 $ 12,702 Recovery First acquisition 10,288 CSRI acquisition 1,972 RSG acquisition 51,335 Taj Media acquisition 3,624 Oxford acquisition 23,211 Balance at September 30, 2015 $ 103,132
Components of Other Identifiable Intangible Assets	Other identifiable intangible assets and their assigned and related accumulated amortization consisted of the following as of December 31, 2014 and September 30, 2015 (in thousands): Gross Carrying Value Accumulated Amortization December 31, September 30, December 31, September 30, 2014 2015 2014 2015 Trademarks $ 2,682 $ 3,632 $ 626 $ 853 Non-compete agreements 1,257 1,257 587 775 Marketing intangibles 220 6,410 39 232 Other 51 51 23 28 $ 4,210 $ 11,350 $ 1,275 $ 1,888
Summary of Changes to Carrying Value of Identifiable Intangible Assets	Changes to the carrying value of identifiable intangible assets during the nine months ended September 30, 2015 were as follows (in thousands): Balance at December 31, 2014 $ 2,935 Amortization expense (613 ) Recovery First intangibles 300 Acquisition of marketing intangibles 1,081 RSG intangibles 4,816 Taj Media intangibles 293 Oxford intangibles 650 Balance at September 30, 2015 $ 9,462

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Summary of Debt Obligations, Net of Unamortized Discounts	A summary of the Company’s debt obligations, net of unamortized discounts, is as follows (in thousands): December 31, September 30, 2014 2015 Non-related party debt: Senior secured loans, net of issuance costs $ — $ 119,803 Real estate debt 24,590 — Asset purchases 126 22 Subordinated debt 708 — Capital lease obligations 1,243 546 Total non-related party debt 26,667 120,371 Less current portion (2,570 ) (3,661 ) Total non-related party debt, long-term $ 24,097 $ 116,710 Related party debt: Acquisition-related debt $ 1,787 $ 1,195 Subordinated debt 187 — Total related party debt 1,974 1,195 Less current portion (1,787 ) (1,195 ) Total related party debt, long-term $ 187 $ —
Schedule of Applicable Rates and Unused Commitment Fees	The Applicable Rates and the unused commitment fees of the 2015 Credit Facility are based upon the following tiers Pricing Tier Consolidated Total Leverage Ratio Eurodollar Rate Loans Base Rate Loans Commitment Fee 1 > 3.25 % 2.25 % 0.50 % 2 > 3.00 % 2.00 % 0.45 % 3 > 2.75 % 1.75 % 0.40 % 4 > 2.50 % 1.50 % 0.35 % 5 < 2.00:1.00 2.25 % 1.25 % 0.35 %
Schedule of Consolidated Total Leverage Ratio	· Consolidated Total Leverage Ratio: may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Total Leverage Ratio September 30, 2015 4.50:1.00 December 31, 2015 4.50:1.00 March 31, 2016 4.50:1.00 June 30, 2016 4.25:1.00 September 30, 2016 4.25:1.00 December 31, 2016 4.25:1.00 March 31, 2017 and each fiscal quarter thereafter 4.00:1.00
Schedule of Consolidated Senior Secured Leverage Ratio	· Consolidated Senior Secured Leverage Ratio may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Senior Secured Leverage Ratio September 30, 2015 4.00:1.00 December 31, 2015 4.00:1.00 March 31, 2016 4.00:1.00 June 30, 2016 3.75:1.00 September 30, 2016 3.75:1.00 December 31, 2016 3.75:1.00 March 31, 2017 and each fiscal quarter thereafter 3.50:1.00
Schedule of Interest Rate Swap Agreements	The following table sets forth our interest rate swap agreements at September 30, 2015 (dollars in thousands): Notional Maturity Fair Amount Date Value Pay-fixed interest rate swap $ 8,137 May 2018 $ (188 ) Pay-fixed interest rate swap 11,820 August 2019 (495 ) Total $ 19,957 $ (683 )

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Statement of Changes in Mezzanine Equity	Changes to mezzanine amounts during the nine months ended September 30, 2015 were as follows (dollars in thousands): Noncontrolling Interest BHR Series A Preferred Units Amount Balance at December 31, 2014 160 $ 7,848 Redemption of Series A Preferred Units from Alcentra (160 ) (7,848 ) Balance at September 30, 2015 — $ —
Summary of Share Activity Under 2014 Equity Incentive Plan	A summary of share activity under the Company’s 2014 Equity Incentive Plan is set forth below: Weighted- average Grant Shares Date Fair Value Unvested at December 31, 2014 196,882 $ 18.53 Granted 415,894 28.79 Vested (151,608 ) 21.61 Forfeitures (15,500 ) 25.00 Unvested at September 30, 2015 445,668 $ 26.12

Description of Business - Addit

Description of Business - Additional Information (Details)	9 Months Ended
	Sep. 30, 2015FacilityCenter
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating facilities	8
Number of standalone outpatient centers | Center	8
Number of treatment service facilities	1

Basis of Presentation and Rec35

Basis of Presentation and Recently Issued Accounting Pronouncements - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)FacilityProfessionalGroup	Sep. 30, 2014USD ($)ProfessionalGroup	Sep. 30, 2015USD ($)FacilityProfessionalGroup	Sep. 30, 2014USD ($)RealEstateProfessionalGroup	Dec. 31, 2014USD ($)
Business And Basis Of Presentation [Line Items]
Assets	$ 290,911		$ 290,911		$ 145,952
Liabilities	155,271		155,271		42,963
Less: net loss attributable to noncontrolling interest	$ 708	$ 433	1,747	$ 1,101
2015 Credit Facility
Business And Basis Of Presentation [Line Items]
Deferred debt issuance costs			$ 1,400
VIEs
Business And Basis Of Presentation [Line Items]
Number of professional groups | ProfessionalGroup	6	5	6	5
Number of properties subject to ground leases | Facility	2		2
Assets	$ 2,600		$ 2,600		500
Liabilities	600		600		$ 3,300
Less: net loss attributable to noncontrolling interest	$ 700	$ 400	$ 1,700	$ 1,100
VIEs | BHR
Business And Basis Of Presentation [Line Items]
Number of real estate properties consolidated | RealEstate				1

Reorganization Transactions - A

Reorganization Transactions - Additional Information (Details)

Feb. 25, 2015USD ($)

Nov. 10, 2014shares

Oct. 07, 2014USD ($)$ / sharesshares

Apr. 30, 2014shares

Apr. 15, 2014USD ($)$ / sharesshares

Feb. 28, 2014USD ($)shares

Sep. 30, 2015USD ($)shares

Apr. 30, 2014USD ($)shares

Sep. 30, 2015USD ($)shares

Sep. 30, 2014USD ($)

Dec. 31, 2014shares

Mar. 31, 2014shares

Business Acquisition [Line Items]

Share exchange ratio

one-for-one

Common stock shares sold | shares

741,322

21,374,374

741,322

21,374,374

21,374,374

Acquisition-related expenses

$ 937,000

$ 2,917,000

AAC Holdings, Inc.

Business Acquisition [Line Items]

Issuance of common stock in connection with merger

1.571119

Conversion of stock | shares

293,040

Percentage of ownership on outstanding shares

100.00%

IPO

Business Acquisition [Line Items]

Common stock issued, share | shares

5,750,000

Shares price per share | $ / shares

$ 15

Proceeds from sale of common stock — initial public offering

$ 68,800,000

Over Allotment Option

Business Acquisition [Line Items]

Common stock issued, share | shares

250,000

Certain Stockholders | Over Allotment Option

Business Acquisition [Line Items]

Common stock issued, share | shares

500,000

Director

Business Acquisition [Line Items]

Common stock shares sold | shares

23,717

Common Stock

Business Acquisition [Line Items]

Proceeds from sale of equity

$ 6,000,000

Series A Preferred Stock

Business Acquisition [Line Items]

Preferred units redeemed, value

$ 8,500,000

Preferred stock redemption call premium percentage

3.00%

Preferred Stock Redemption Premium

$ 200,000

Preferred stock redemption percentage

100.00%

Preferred stock redemption unpaid returns

$ 300,000

Behavioral Healthcare Realty Limited Liability Company

Business Acquisition [Line Items]

Outstanding common membership interest

100.00%

Business acquisition cash acquired

$ 3,000,000

Term loan for business acquisition

$ 1,800,000

Common stock issued in connection with business combination, shares restricted | shares

820,124

Percentage of sale required to approve sale by BHR

50.00%

Percentage of minority interest

50.00%

Fair value of common stock, per share | $ / shares

$ 8.54

Repayment of term loan

$ 1,700,000

Monthly principal payments

$ 35,855

Interest rate

5.00%

Term loan balloon payment

$ 1,400,000

Total consideration related to acquisition

4,900,000

Fair value of consideration transferred

11,800,000

Loan assumed

1,700,000

Deferred tax assets net

200,000

Noncontrolling interest attributable to BHR

3,700,000

Adjustments to additional paid in capital

1,200,000

Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock

Business Acquisition [Line Items]

Proceeds from sale of equity

$ 7,800,000

$ 400,000

Preferred stock shares sold | shares

8.5

Preferred units redeemed, units | shares

36.5

Preferred stock, units sold | shares

160

160

Preferred units redeemed, units | shares

36.5

Preferred units redeemed, value

$ 8,500,000

$ 1,800,000

Common stock purchased, shares | shares

224,697

Common stock purchased, per share | $ / shares

$ 8.12

Preferred units, description

any accrued and unpaid preferred return and (ii)?a call premium of (a)?3.0% through April?15, 2015, (b)?2.0% from April?16, 2015 through April?15, 2017 and (c)?no premium any time after April?15, 2017.

Maximum percentage of outstanding units for redemption

100.00%

Preferred stock, redemption price per share | $ / shares

$ 50,000

Preferred stock redemption call premium percentage

3.00%

Preferred Stock Redemption Premium

$ 200,000

Percentage of voting or approval rights

no voting or approval rights

Preferred stock redemption percentage

100.00%

Preferred stock redemption unpaid returns

$ 300,000

Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock | Call premium through April 15, 2015

Business Acquisition [Line Items]

Preferred stock redemption call premium percentage

3.00%

Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock | Call premium from April 16, 2015 through April 15, 2017

Business Acquisition [Line Items]

Preferred stock redemption call premium percentage

2.00%

Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock | Call premium any time after April 15, 2017

Business Acquisition [Line Items]

Preferred Stock Redemption Premium

$ 0

Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock | Director

Business Acquisition [Line Items]

Preferred units redeemed, units | shares

9

Preferred units redeemed, value

$ 450,000

Common stock purchased, shares | shares

55,406

CRMS Acquisition

Business Acquisition [Line Items]

Outstanding common membership interest

100.00%

Business acquisition cash acquired

$ 500,000

Common stock issued in connection with business combination, shares restricted | shares

234,324

Fair value of common stock, per share | $ / shares

$ 8.54

Consideration paid for acquisition

$ 2,500,000

Acquisition-related expenses

$ 100,000

Alcentra

Business Acquisition [Line Items]

Closing fee

1.00%

Put right option exercisable terms

Alcentra had the ability to exercise its put right for a period of 30 days following the 36th month or 48th month after the date of issuance and at any time following the 60th month after the date of issuance.

Payments to affiliates

$ 3,000,000

Alcentra | Series A Preferred Stock

Business Acquisition [Line Items]

Preferred units, value per unit | $ / shares

$ 50,000

Preferred return on initial investment

12.00%

Preferred units held | shares

60

Minimum

Business Acquisition [Line Items]

Outstanding common membership interest

93.60%

Minimum | Private Share Exchange

Business Acquisition [Line Items]

Shareholding percentage

90.00%

Minimum | Behavioral Healthcare Realty Limited Liability Company | Series A Preferred Stock

Business Acquisition [Line Items]

Preferred units redeemed, units | shares

40

Reorganization Transactions - S

Reorganization Transactions - Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Apr. 15, 2014
Business Acquisition [Line Items]
Goodwill	$ 103,132	$ 12,702
CRMS Acquisition
Business Acquisition [Line Items]
Cash			$ 149
Accounts receivable			452
Property and equipment			91
Goodwill			1,810
Total assets acquired			2,502
Accrued liabilities			2
Total liabilities assumed			2
Net assets acquired			$ 2,500

Other Revenue - Additional Info

Other Revenue - Additional Information (Details)	9 Months Ended
	Sep. 30, 2015
Referral Solutions Group LLC
Revenues
Business acquisition, effective date of acquisition	Jul. 2, 2015

General and Administrative Co39

General and Administrative Costs - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
General And Administrative Costs [Abstract]
General and administrative expense	$ 13.4	$ 6.9	$ 32.6	$ 18.6

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator
Net income attributable to AAC Holdings, Inc.	$ 2,452	$ 2,458	$ 10,726	$ 4,194
Net income available to AAC Holdings, Inc. common stockholders	$ 2,452	$ 2,213	$ 10,045	$ 3,746
Denominator
Weighted-average shares outstanding – basic	21,922,374	15,598,396	21,471,063	15,161,266
Dilutive securities	108,759	15,984	180,591	84,492
Weighted-average shares outstanding – diluted	22,031,133	15,614,380	21,651,654	15,245,758
Basic earnings per share	$ 0.11	$ 0.14	$ 0.47	$ 0.25
Diluted earnings per share	$ 0.11	$ 0.14	$ 0.46	$ 0.25
BHR | Series A Preferred Stock
Numerator
BHR Series A Preferred Unit dividends		$ (245)	$ (147)	$ (448)
Redemption of BHR Series A Preferred Units			$ (534)

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) $ in Thousands	Aug. 10, 2015USD ($)aCenterBeds	Jul. 02, 2015USD ($)shares	Apr. 17, 2015USD ($)shares	Feb. 20, 2015USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Business Acquisition [Line Items]
Revenues					$ 57,372	$ 36,599	$ 153,979	$ 95,802
Income before income taxes					$ 2,388	$ 3,536	$ 13,982	$ 5,463
Recovery First Inc.
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Feb. 20, 2015
Business acquisition cash acquired				$ 13,100
Clinical Services Of Rhode Island Inc
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Apr. 17, 2015
Business acquisition cash acquired			$ 700
Common stock issued in connection with business combination, shares restricted | shares			42,460
Referral Solutions Group LLC
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Jul. 2, 2015
Business acquisition cash acquired		$ 32,500
Common stock issued in connection with business combination, shares restricted | shares		540,193
Taj Media LLC
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Jul. 2, 2015
Business acquisition cash acquired		$ 2,200
Common stock issued in connection with business combination, shares restricted | shares		37,253
The Oxford Centre, Inc.
Business Acquisition [Line Items]
Business acquisition, effective date of acquisition							Aug. 10, 2015
Business acquisition cash acquired	$ 35,000
Number of hospital beds | Beds	76
Area of the campus | a	110
Number of outpatient location | Center	3
Recovery First And CSRI
Business Acquisition [Line Items]
Revenues							$ 11,100
Income before income taxes							$ 3,300

Acquisitions - Schedule of Asse

Acquisitions - Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 103,132	$ 12,702
Recovery First Inc.
Business Acquisition [Line Items]
Accounts receivable	750
Prepaid expenses and other assets	392
Property and equipment	1,415
Goodwill	10,288
Intangible assets	300
Total assets acquired	13,145
Accrued liabilities	43
Total liabilities assumed	43
Net assets acquired	13,102
Clinical Services Of Rhode Island Inc
Business Acquisition [Line Items]
Cash and cash equivalents	27
Prepaid expenses and other assets	6
Property and equipment	3
Goodwill	1,972
Total assets acquired	2,008
Net assets acquired	2,008
Referral Solutions Group LLC
Business Acquisition [Line Items]
Accounts receivable	580
Prepaid expenses and other assets	81
Property and equipment	15
Other assets	36
Goodwill	51,335
Intangible assets	4,816
Total assets acquired	56,863
Accrued liabilities	210
Total liabilities assumed	210
Net assets acquired	56,653
Taj Media LLC
Business Acquisition [Line Items]
Property and equipment	34
Other assets	8
Goodwill	3,624
Intangible assets	293
Total assets acquired	3,959
Accrued liabilities	52
Total liabilities assumed	52
Net assets acquired	3,907
Oxford
Business Acquisition [Line Items]
Accounts receivable	5,023
Prepaid expenses and other assets	58
Property and equipment	6,196
Goodwill	23,211
Intangible assets	650
Total assets acquired	35,138
Accrued liabilities	138
Total liabilities assumed	138
Net assets acquired	35,000
Recovery First Inc. and CSRI
Business Acquisition [Line Items]
Cash and cash equivalents	27
Accounts receivable	6,353
Prepaid expenses and other assets	537
Property and equipment	7,663
Other assets	44
Goodwill	90,430
Intangible assets	6,059
Total assets acquired	111,113
Accrued liabilities	443
Total liabilities assumed	443
Net assets acquired	$ 110,670

Acquisitions - Schedule of Brea

Acquisitions - Schedule of Breakdown of Identifiable Intangible Assets, Valuation Method (Details) - Recovery First Inc. $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Assigned Value	$ 6,059
Trademarks
Acquired Finite Lived Intangible Assets [Line Items]
Valuation Method	Relief from royalty
Assigned Value	$ 950
Estimated Life In Years	10 years
Marketing Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Valuation Method	Relief from royalty
Assigned Value	$ 5,109
Estimated Life In Years	10 years

Acquisitions - Schedule of Reve

Acquisitions - Schedule of Revenues and Income Before Income Taxes (Details) - Recovery First And CSRI - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Revenues	$ 58,517	$ 43,893	$ 171,559	$ 117,753
Income before income taxes	$ 3,293	$ 6,958	$ 19,092	$ 23,043

Accounts Receivable and Allow45

Accounts Receivable and Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Receivables [Abstract]
Balance at December 31, 2014	$ 8,468
Additions charged to provision for doubtful accounts	12,925
Accounts written off, net of recoveries	(7,804)
Balance at September 30, 2015	$ 13,589

Accounts Receivable and Allow46

Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Details) - Accounts Receivable	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	10.00%	10.00%
Anthem Blue Cross Blue Shield | COLORADO
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	15.90%	15.90%
Blue Cross Blue Shield | CALIFORNIA
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	11.40%	12.40%
Blue Cross Blue Shield | TEXAS
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	13.20%
Aetna
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	11.20%	11.90%
United Behavioral Health
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed		11.40%

Property and Equipment, net - C

Property and Equipment, net - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Total property and equipment	$ 109,088	$ 57,210
Less accumulated depreciation and amortization	(12,061)	(8,014)
Property and equipment, net	97,027	49,196
Computer equipment and software
Property Plant And Equipment [Line Items]
Total property and equipment	10,957	4,845
Furniture and fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	6,193	4,535
Vehicles
Property Plant And Equipment [Line Items]
Total property and equipment	1,124	834
Equipment under capital lease
Property Plant And Equipment [Line Items]
Total property and equipment	1,207	1,777
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment	7,030	3,538
Construction in progress
Property Plant And Equipment [Line Items]
Total property and equipment	45,743	19,410
Building
Property Plant And Equipment [Line Items]
Total property and equipment	33,676	19,733
Land
Property Plant And Equipment [Line Items]
Total property and equipment	$ 3,158	$ 2,538

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) $ in Thousands	Mar. 31, 2015USD ($)Beds	Feb. 24, 2015USD ($)a	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Property Plant And Equipment [Line Items]
Purchase price paid in cash			$ 42,779	$ 12,021
Property In Ringwood New Jersey
Property Plant And Equipment [Line Items]
Area of land | a		96
Purchase price paid in cash		$ 6,400
Hospital in Southern California
Property Plant And Equipment [Line Items]
Number of hospital beds | Beds	84
Business acquisition cash acquired	$ 13,500

Goodwill and Intangible Asset49

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	Apr. 17, 2015	Sep. 30, 2015	Dec. 31, 2014
Goodwill And Intangible Assets [Line Items]
Goodwill impairment charge			$ 0
Goodwill		$ 103,132,000	$ 12,702,000
Marketing Intangibles
Goodwill And Intangible Assets [Line Items]
Acquisition of intangibles	$ 1,100,000	$ 1,081,000
Business acquisition cash acquired	$ 500,000
Common stock issued in connection with business combination, shares restricted	17,110
Common stock issued in connection with business combination, amount	$ 500,000
Estimated useful life of intangibles acquired	10 years

Goodwill and Intangible Asset50

Goodwill and Intangible Assets - Summary of Increase In Goodwill Related To Acquisition (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Finite Lived Intangible Assets [Line Items]
Beginning balance	$ 12,702
Ending balance	103,132
Recovery First Inc.
Finite Lived Intangible Assets [Line Items]
Recovery First acquisition	10,288
Ending balance	10,288
CSRI
Finite Lived Intangible Assets [Line Items]
Recovery First acquisition	1,972
Ending balance	1,972
RSG
Finite Lived Intangible Assets [Line Items]
Recovery First acquisition	51,335
Taj Media LLC
Finite Lived Intangible Assets [Line Items]
Recovery First acquisition	3,624
Ending balance	3,624
Oxford
Finite Lived Intangible Assets [Line Items]
Recovery First acquisition	$ 23,211

Goodwill and Intangible Asset51

Goodwill and Intangible Assets - Components of Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Gross Carrying Value	$ 11,350	$ 4,210
Accumulated Amortization	1,888	1,275
Trademarks
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Gross Carrying Value	3,632	2,682
Accumulated Amortization	853	626
Non-compete agreements
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Gross Carrying Value	1,257	1,257
Accumulated Amortization	775	587
Marketing Intangibles
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Gross Carrying Value	6,410	220
Accumulated Amortization	232	39
Other
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Gross Carrying Value	51	51
Accumulated Amortization	$ 28	$ 23

Goodwill and Intangible Asset52

Goodwill and Intangible Assets - Summary of Changes to Carrying Value of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 17, 2015	Sep. 30, 2015
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Beginning balance		$ 2,935
Amortization expense		(613)
Recovery First intangibles		300
Ending balance		9,462
Marketing Intangibles
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles	$ 1,100	1,081
RSG
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles		4,816
Taj Media LLC
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles		293
Oxford
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles		$ 650

Debt - Summary of Debt Obligati

Debt - Summary of Debt Obligations, Net of Unamortized Discounts (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Line Of Credit Facility [Line Items]
Total non-related party debt	$ 120,371	$ 26,667
Less current portion	(3,661)	(2,570)
Total non-related party debt, long-term	116,710	24,097
Total related party debt	1,195	1,974
Less current portion	(1,195)	(1,787)
Long-term debt—related party, net of current portion		187
Senior Secured Term Loan
Line Of Credit Facility [Line Items]
Long term debt	119,803
Real Estate Debt
Line Of Credit Facility [Line Items]
Long term debt		24,590
Asset Purchases
Line Of Credit Facility [Line Items]
Long term debt	22	126
Subordinated Debt
Line Of Credit Facility [Line Items]
Long term debt		900
Subordinated debt		708
Total related party debt		187
Capital Lease Obligations
Line Of Credit Facility [Line Items]
Long term debt	546	1,243
Acquisition-Related Debt
Line Of Credit Facility [Line Items]
Total related party debt	$ 1,195	$ 1,787

Debt - Credit Facility - Additi

Debt - Credit Facility - Additional Information (Details) - USD ($)	Mar. 09, 2015	Dec. 18, 2014	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Aug. 07, 2015	Jul. 01, 2015	Apr. 15, 2014
Line Of Credit Facility [Line Items]
Proceeds from long-term debt				$ 73,802,000	$ 4,053,000
London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate				3.00%
Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Long-term Line of Credit		$ 487,500
Line of credit facility repaid amount		$ 500,000
2015 Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing limit	$ 200,000,000
Debt instrument, term	5 years
Credit facility borrowing capacity	$ 125,000,000
Description of payment of principal installments	The 2015 Credit Facility generally requires quarterly interest payments.
Description of interest rate	Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0% (the interest rate at September 30, 2015 was 2.83%).
Interest rate at the end of period				2.83%
Debt issuance costs				$ 1,400,000
Debt instrument, covenant compliance				the Company was in compliance with all applicable covenants
Term Loan | 2015 Credit Facility
Line Of Credit Facility [Line Items]
Credit facility borrowing capacity	$ 75,000,000
Revolving line of credit maturity date	Mar. 9, 2020
Proceeds from long-term debt				$ 75,000,000
Term Loan | 2015 Credit Facility | September 30, 2015 to December 31, 2016
Line Of Credit Facility [Line Items]
Monthly principal payments	$ 900,000
Term Loan | 2015 Credit Facility | March 31, 2017 to December 31, 2017
Line Of Credit Facility [Line Items]
Monthly principal payments	1,400,000
Term Loan | 2015 Credit Facility | March 31, 2018 to December 31, 2018
Line Of Credit Facility [Line Items]
Monthly principal payments	2,300,000
Term Loan | 2015 Credit Facility | March 31, 2019 to December 31, 2019
Line Of Credit Facility [Line Items]
Monthly principal payments	$ 2,800,000
Base Rate Loans | 2015 Credit Facility | Federal Funds Rate
Line Of Credit Facility [Line Items]
Interest rate	0.50%
Base Rate Loans | 2015 Credit Facility | Eurodollar Rate
Line Of Credit Facility [Line Items]
Interest rate	1.00%
Real Estate Debt
Line Of Credit Facility [Line Items]
Repayment of outstanding debt				$ 24,900,000
Minimum | 2015 Credit Facility
Line Of Credit Facility [Line Items]
Fixed charge coverage ratio	1.50
Accounts Receivable
Line Of Credit Facility [Line Items]
Concentration risk percentage				10.00%	10.00%
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Maximum borrowing limit				$ 20,000,000
Net income				1
Capital expenditure				$ 100,000
Additional borrowings				50,000
Lease operating expense				100,000
Long-term Line of Credit				1,000,000
Debt issuance costs				$ 1,400,000
Revolving Credit Facility | Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Maximum borrowing limit								$ 15,000,000
Revolving line of credit interest, LIBOR period				The Amended Revolving Line bore interest at one-month LIBOR, plus an applicable margin that was determined by the Company’s leverage ratio, as defined by the agreement, at the end of each quarter. A quarter-end leverage ratio of 4.75 to 1.00 or above resulted in an applicable margin of 3.00%, a ratio below 4.75 to 1.00 and equal to or above 4.00 to 1.00 results in an applicable margin of 2.75%, and a ratio below 4.00 to 1.00 results in an applicable margin of 2.50%.
Revolving Credit Facility | Second Amended and Restated Credit Agreement | 4.75 to 1.00 or above | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate				3.00%
Revolving Credit Facility | Second Amended and Restated Credit Agreement | 4.75 to 1.00 and equal to or above 4.00 to 1.00 | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate				2.75%
Revolving Credit Facility | Second Amended and Restated Credit Agreement | below 4.00 to 1.00 | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate				2.50%
Revolving Credit Facility | 2015 Credit Facility
Line Of Credit Facility [Line Items]
Long-term Line of Credit				$ 47,000,000		$ 32,000,000	$ 15,000,000
Credit facility borrowing capacity	$ 50,000,000			$ 50,000,000		$ 50,000,000	$ 50,000,000
Revolving line of credit maturity date	Mar. 9, 2020
Commitment fee on undrawn amounts, percentage				0.35%
Revolving Credit Facility | 2015 Credit Facility | Standby Letters of Credit
Line Of Credit Facility [Line Items]
Long-term Line of Credit				$ 2,000,000
Revolving Credit Facility | Term Loan A | Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Long-term Line of Credit								600,000
Revolving Credit Facility | Term Loan A | Second Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate				3.15%
Revolving Credit Facility | Term Loan B | Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Long-term Line of Credit								$ 1,500,000
Line of credit facility repaid amount			$ 1,500,000
Revolving Credit Facility | Maximum
Line Of Credit Facility [Line Items]
Tangible net worth ratio				2.50
Fixed charge coverage ratio				1.25
Revolving Credit Facility | Maximum | Second Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Leverage Ratio				4.75
Revolving Credit Facility | Maximum | 2015 Credit Facility
Line Of Credit Facility [Line Items]
Commitment fee on undrawn amounts, percentage	0.50%
Revolving Credit Facility | Minimum
Line Of Credit Facility [Line Items]
Tangible net worth ratio				1
Fixed charge coverage ratio				1
Revolving Credit Facility | Minimum | Second Amended and Restated Credit Agreement | London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Leverage Ratio				4
Revolving Credit Facility | Minimum | 2015 Credit Facility
Line Of Credit Facility [Line Items]
Commitment fee on undrawn amounts, percentage	0.35%
Revolving Credit Facility | Non-payment for 3 months
Line Of Credit Facility [Line Items]
Concentration risk percentage				80.00%
Revolving Credit Facility | Non-payment for 4 months
Line Of Credit Facility [Line Items]
Concentration risk percentage				70.00%
Revolving Credit Facility | Gross Revenues
Line Of Credit Facility [Line Items]
Concentration risk percentage				8.00%
Revolving Credit Facility | Gross Revenues | Second Amended and Restated Credit Agreement | Previous Restriction
Line Of Credit Facility [Line Items]
Concentration risk percentage				8.00%
Revolving Credit Facility | Gross Revenues | Maximum | Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Concentration risk percentage				20.00%
Revolving Credit Facility | Accounts Receivable | Second Amended and Restated Credit Agreement
Line Of Credit Facility [Line Items]
Concentration risk percentage				70.00%

Debt - Schedule of Applicable R

Debt - Schedule of Applicable Rates and Unused Commitment Fees (Details) - 2015 Credit Facility	Mar. 09, 2015
Pricing Tier 1
Line Of Credit Facility [Line Items]
Commitment Fee	0.50%
Pricing Tier 1 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	3.25%
Pricing Tier 1 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.25%
Pricing Tier 1 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	3.50
Pricing Tier 2
Line Of Credit Facility [Line Items]
Commitment Fee	0.45%
Pricing Tier 2 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	3.00%
Pricing Tier 2 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.00%
Pricing Tier 2 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	3
Pricing Tier 2 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	3.50
Pricing Tier 3
Line Of Credit Facility [Line Items]
Commitment Fee	0.40%
Pricing Tier 3 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.75%
Pricing Tier 3 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.75%
Pricing Tier 3 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	2.50
Pricing Tier 3 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	3
Pricing Tier 4
Line Of Credit Facility [Line Items]
Commitment Fee	0.35%
Pricing Tier 4 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.50%
Pricing Tier 4 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.50%
Pricing Tier 4 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	2
Pricing Tier 4 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	2.50
Pricing Tier 5
Line Of Credit Facility [Line Items]
Commitment Fee	0.35%
Pricing Tier 5 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.25%
Pricing Tier 5 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.25%
Pricing Tier 5 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	2

Debt - Schedule of Consolidated

Debt - Schedule of Consolidated Total Leverage Ratio (Details) - 2015 Credit Facility - Maximum	Mar. 09, 2015
September 30, 2015
Line Of Credit Facility [Line Items]
Leverage Ratio	4.50
December 31, 2015
Line Of Credit Facility [Line Items]
Leverage Ratio	4.50
March 31, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	4.50
June 30, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	4.25
September 30, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	4.25
December 31, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	4.25
March 31, 2017 and Each Fiscal Quarter Thereafter
Line Of Credit Facility [Line Items]
Leverage Ratio	4

Debt - Schedule of Consolidat57

Debt - Schedule of Consolidated Senior Secured Leverage Ratio (Details) - 2015 Credit Facility - Maximum	Mar. 09, 2015
September 30, 2015
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	400.00%
December 31, 2015
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	400.00%
March 31, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	400.00%
June 30, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	375.00%
September 30, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	375.00%
December 31, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	375.00%
March 31, 2017 and Each Fiscal Quarter Thereafter
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	350.00%

Debt - Interest Rate Swap Agree

Debt - Interest Rate Swap Agreements - Additional Information (Details)	1 Months Ended
	Jul. 31, 2014USD ($)Agreement	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Line Of Credit Facility [Line Items]
Number of interest rate swap agreement | Agreement	2
Interest rate swap agreement initial notional amount		$ 19,957,000
Fair value of interest rate swaps, liability		683,000	$ 431,000
Agreement One
Line Of Credit Facility [Line Items]
Interest rate swap agreement initial notional amount	$ 8,900,000	8,137,000
Interest rate swap agreement percentage	4.21%
Fair value of interest rate swaps, liability		188,000
Agreement Two
Line Of Credit Facility [Line Items]
Interest rate swap agreement initial notional amount	$ 13,200,000	11,820,000
Interest rate swap agreement percentage	4.73%
Fair value of interest rate swaps, liability		$ 495,000

Debt - Schedule of Interest Rat

Debt - Schedule of Interest Rate Swap Agreements (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Jul. 31, 2014
Line Of Credit Facility [Line Items]
Notional Amount	$ 19,957,000
Maturity Date	Aug. 31, 2019
Fair Value	$ (683,000)	$ (431,000)
Agreement One
Line Of Credit Facility [Line Items]
Notional Amount	$ 8,137,000		$ 8,900,000
Maturity Date	May 31, 2018
Fair Value	$ (188,000)
Agreement Two
Line Of Credit Facility [Line Items]
Notional Amount	$ 11,820,000		$ 13,200,000
Maturity Date	Aug. 31, 2019
Fair Value	$ (495,000)

Debt - Real Estate Debt - Addit

Debt - Real Estate Debt - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Apr. 15, 2014
Line Of Credit Facility [Line Items]
Maturity Date	Aug. 31, 2019
Behavioral Healthcare Realty, LLC
Line Of Credit Facility [Line Items]
Term loan for business acquisition	$ 1,700		$ 1,800
Notes payable		$ 24,600
Maturity Date	Apr. 30, 2015
Real Estate Debt
Line Of Credit Facility [Line Items]
Notes payable		$ 24,590
Maturity Date	Mar. 9, 2015

Debt - Concorde Real Estate - A

Debt - Concorde Real Estate - Additional Information (Details)	1 Months Ended		9 Months Ended	12 Months Ended
	Jul. 31, 2013USD ($)	May. 31, 2013USD ($)	Sep. 30, 2015	Dec. 31, 2014USD ($)	Dec. 31, 2012	Jun. 27, 2012USD ($)
Line Of Credit Facility [Line Items]
Debt instrument maturity date			Aug. 31, 2019
Debt instrument, increase in variable rate			0.25%
Debt instrument interest rate				2.67%
Concorde Real Estate
Line Of Credit Facility [Line Items]
Promissory note refinanced						$ 3,500,000
Loans for renovation						$ 7,400,000
Description on periodic payments of real estate			The first tranche totaled $4.4 million and bore interest at 3.0% plus one-month LIBOR, with interest payable monthly, and required a lump sum principal payment in July 2013. The second tranche totaled $3.0 million, bore interest at 2.0% plus the lender’s prime rate (3.25% at December 31, 2012), with interest payable monthly, and required a lump sum principal payment in July 2013.
Notes payable		$ 9,600,000
Debt instrument maturity date			May 15, 2018
Monthly principal payments		53,228
Term loan balloon payment		$ 6,600,000
Interest rate		2.50%
Debt instrument, increase in variable rate		0.25%
Debt instrument interest rate				2.67%
Debt instrument outstanding amount				$ 8,600,000
Debt instrument, repayment date				Mar. 9, 2015
Fixed coverage ratio agreement			fixed charge coverage ratio of not less than 1.25 to 1.00.
Fixed charge coverage ratio			1.25
Concorde Real Estate | First Mortgage
Line Of Credit Facility [Line Items]
Tranche amount	$ 4,400,000
Interest rate	3.00%
Concorde Real Estate | Second Tranche
Line Of Credit Facility [Line Items]
Tranche amount	$ 3,000,000
Interest rate	2.00%
Concorde Real Estate | Second Tranche | Prime Rate
Line Of Credit Facility [Line Items]
Interest rate					3.25%

Debt - Greenhouse Real Estate -

Debt - Greenhouse Real Estate - Additional Information (Details)	1 Months Ended	9 Months Ended	12 Months Ended
	Aug. 31, 2014USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Oct. 08, 2013USD ($)Beds
Line Of Credit Facility [Line Items]
Debt instrument, increase in variable rate		0.25%
Debt instrument maturity date		Aug. 31, 2019
Minimum debt service coverage ratio		1.25
Debt instrument interest rate			2.67%
Permanent Loan
Line Of Credit Facility [Line Items]
Debt instrument maturity date		Oct. 31, 2019
Percentage of construction completed		100.00%
Percentage of maximum amount converted from construction facility to term loan		65.00%
Exit fee percentage		3.00%
Permanent loan, amortization schedule		15 years
Debt conversion, converted instrument, amount		$ 12,700,000
Permanent loan, fixed interest rate		LIBOR plus 2.5%
Permanent loan monthly principal payments	$ 70,778
Term loan balloon payment	$ 8,500,000
Debt instrument outstanding amount			$ 12,500,000
Debt instrument, repayment date		Mar. 9, 2015
London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Debt instrument, fixed interest rate		3.00%
Applicable margin rate		3.00%
Construction Loans
Line Of Credit Facility [Line Items]
Construction loan facility				$ 13,200,000
Number of bed facility | Beds				70
Number of additional bed facility | Beds				60

Debt - Academy Real Estate - Ad

Debt - Academy Real Estate - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013	May. 31, 2013
Line Of Credit Facility [Line Items]
Debt instrument maturity date	Aug. 31, 2019
Debt instrument, increase in variable rate	0.25%
Debt instrument interest rate		2.67%
Academy Real Estate
Line Of Credit Facility [Line Items]
Notes payable to bank, noncurrent			$ 3,600,000	$ 3,600,000
Debt instrument maturity date	Nov. 10, 2013
Debt instrument, increase in variable rate	0.25%
Debt instrument outstanding amount		$ 3,500,000
Debt instrument extended maturity date	Jul. 14, 2019
Term loan balloon payment	$ 1,900,000
Debt instrument interest rate		3.17%
Fixed charge coverage ratio	1.25
Monthly principal payments	$ 30,000
Debt instrument, repayment date	Mar. 9, 2015
London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Interest rate	3.00%
Interest rate	3.00%
London Interbank Offered Rate (LIBOR) | Academy Real Estate
Line Of Credit Facility [Line Items]
Interest rate	3.00%
Interest rate	3.00%

Debt - Behavioral Healthcare Re

Debt - Behavioral Healthcare Realty, LLC - Additional Information (Details) - USD ($)	Oct. 07, 2014	Sep. 30, 2015	Apr. 15, 2014
Line Of Credit Facility [Line Items]
Debt instrument maturity date		Aug. 31, 2019
Behavioral Healthcare Realty, LLC
Line Of Credit Facility [Line Items]
Term loan for business acquisition		$ 1,700,000	$ 1,800,000
Permanent loan monthly principal payments		$ 35,855
Interest rate		5.00%
Term loan balloon payment		$ 1,400,000
Debt instrument maturity date		Apr. 30, 2015
Repayment of term loan	$ 1,600,000
Debt instrument, repayment date		Oct. 7, 2014

Debt - Acquisition Related Debt

Debt - Acquisition Related Debt - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 31, 2015	Feb. 27, 2015	Aug. 15, 2014	Apr. 30, 2013	Sep. 30, 2015	Dec. 31, 2013	Dec. 31, 2014	Aug. 31, 2012	Apr. 30, 2012	Mar. 31, 2012
Line Of Credit Facility [Line Items]
Amount of subordinated note payable									$ 1,000	$ 1,000
Debt instrument maturity date					Aug. 31, 2019
Repayments of Subordinated Debt		$ 1,000			$ 945
TSN Acquisition | Notes payable
Line Of Credit Facility [Line Items]
Monthly principal payments	$ 300
Debt instrument maturity date					Feb. 29, 2016
Interest rate	6.25%
Acquisition-Related Debt | TSN Acquisition
Line Of Credit Facility [Line Items]
Business acquisition, effective date of acquisition					Aug. 31, 2012
Term loan balloon payment			$ 1,500			$ 3,000
Contingent Payment Discount Percentage					13.00%
Claw back of contingent payment						$ 500
Reduction of shares of common stock						118,576
Acquisition-Related Debt | TSN Acquisition | Notes payable
Line Of Credit Facility [Line Items]
Amount of subordinated note payable								$ 6,200
Monthly principal payments					$ 2,200
Description of payment of principal installments					Equal monthly principal installments over 36 months
Interest rate					5.00%
Term loan balloon payment				$ 500
Debt instrument maturity date					Aug. 31, 2015
Interest rate on balloon payment					3.125%
Contingent balloon payment due date					Aug. 31, 2015
Interest rate on contingent balloon payment					0.03125
Number of shares of common stock converted				95,451
Conversion price per share				$ 5.24
Repayments of Subordinated Debt			200
Acquisition-Related Debt | TSN Acquisition | Notes payable | Settlement Agreement
Line Of Credit Facility [Line Items]
Amount of subordinated note payable					$ 1,200		$ 1,800
Repayments of Subordinated Debt			$ 7,600
Acquisition-Related Debt | TSN Acquisition | Notes payable | Scenario Forecast
Line Of Credit Facility [Line Items]
Term loan balloon payment	$ 2,500
Contingent balloon payment due	$ 1,500

Debt - Subordinated Debt Issued

Debt - Subordinated Debt Issued with Detachable Warrants (Related Party and Non-related Party) - Additional Information (Details) - USD ($)	Feb. 27, 2015	Apr. 30, 2012	Mar. 31, 2012	Sep. 30, 2015	Dec. 31, 2014	Apr. 30, 2014	Mar. 31, 2014
Line Of Credit Facility [Line Items]
Amount of subordinated note payable		$ 1,000,000	$ 1,000,000
Interest rate		12.00%	12.00%
Subordinated debt maturity term		2015 and 2017	2015 and 2017
Warrants issued to purchase common stock							106,728
Repayments of Subordinated Debt	$ 1,000,000			$ 945,000
Stock price				$ 1.36
Exercise price				$ 0.64
Expected life				10 years
Expected volatility				20.00%
Expected dividend yield				0.00%
Common stock, shares issued				21,374,374	21,374,374	741,322
Minimum
Line Of Credit Facility [Line Items]
Risk free interest rate				2.10%
Maximum
Line Of Credit Facility [Line Items]
Risk free interest rate				4.00%
Subordinated Debt
Line Of Credit Facility [Line Items]
Warrants issued to purchase common stock		112,658	112,658
Warrants issued to purchase common stock, per share		$ 0.64	$ 0.64
Warrants expiration date				Mar. 31, 2022
Debt discount				$ 100,000
Unamortized debt discount					$ 55,000
Long term debt					900,000
Director
Line Of Credit Facility [Line Items]
Amount of subordinated note payable		$ 200,000	$ 200,000
Common stock, shares issued							23,717
Director | Subordinated Debt
Line Of Credit Facility [Line Items]
Long term debt					$ 200,000
Warrant Holder
Line Of Credit Facility [Line Items]
Common stock, shares issued							106,728

Equity - Statement of Changes i

Equity - Statement of Changes in Mezzanine Equity (Details) - BHR - Series A Preferred Stock - Noncontrolling Interest $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)shares
Equity [Line Items]
Beginning Balance	160
Redemption of Series A Preferred Units from Alcentra	(160)
Ending Balance
Beginning Balance, Amount | $	$ 7,848
Redemption of Series A Preferred Units from Alcentra | $	$ (7,848)
Ending Balance, Amount | $

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)

Feb. 25, 2015

Jan. 08, 2015

Jan. 07, 2015

Oct. 07, 2014

Apr. 11, 2014

Jul. 31, 2015

Mar. 31, 2014

Sep. 30, 2015

Sep. 30, 2014

Mar. 31, 2014

Jun. 30, 2015

Sep. 30, 2015

Sep. 30, 2014

Equity [Line Items]

Compensation expense

$ 1,300,000

$ 400,000

$ 4,100,000

$ 1,200,000

Fully vested common stock granted

151,608

Fair value on award date per share

$ 21.61

Stock options, granted

415,894

Effect of employee stock purchase plan

$ 499,000

Employee Stock Purchase Plan

Equity [Line Items]

Compensation expense

45,000

$ 0

$ 168,000

$ 0

Employee stock purchase plan, purchase price, Description

On the exercise date (the last trading day of each option period), the cumulative amount deducted from each participant’s salary during that option period will be used to purchase the maximum number of shares of the Company’s common stock at a purchase price equal to the lesser of (i) 85% of the closing market price of our Common Stock as quoted on the New York Stock Exchange on the exercise date or (ii) 85% of the closing market price of the Company’s common stock as quoted on the New York Stock Exchange on the grant date, subject to certain limitations and restrictions.

Payroll deduction percentage of closing market price of common stock

85.00%

Employee stock purchase plan, shares issued

12,637

Shares price per share

$ 25.68

Effect of employee stock purchase plan

$ 300,000

Restricted Stock

Equity [Line Items]

Stock options, granted

400,000

158,000

Unrecognized compensation expenses

$ 11,600,000

$ 11,600,000

Weighted average life of remaining vesting period

2 years 10 months 24 days

Five Non Employee Directors

Equity [Line Items]

Compensation expense

$ 200,000

$ 400,000

Fully vested common stock granted

2,544

5,834

Fair value on award date per share

$ 29.37

$ 8.12

Two Employees | Restricted Stock

Equity [Line Items]

Restricted common stock, granted

82,509

Fair value on award date per share

$ 8.12

Series A Preferred Stock

Equity [Line Items]

Preferred stock redemption percentage

100.00%

Preferred units redeemed, value

$ 8,500,000

Preferred stock redemption call premium amount

$ 200,000

Preferred stock redemption call premium percentage

3.00%

Preferred stock redemption unpaid returns

$ 300,000

Equity - Summary of Share Activ

Equity - Summary of Share Activity Under 2014 Equity Incentive Plan (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Nonvested, Number of Shares [Roll Forward]
Beginning Balance, Shares	196,882
Granted, Shares	415,894
Vested, Shares	(151,608)
Forfeitures, Shares	(15,500)
Ending Balance, Shares	445,668
Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance, Weighted-average Grant Date Fair Value | $ / shares	$ 18.53
Granted, Weighted-average Grant Date Fair Value | $ / shares	28.79
Vested, Weighted-average Grant Date Fair Value | $ / shares	21.61
Forfeitures, Weighted-average Grant Date Fair Value | $ / shares	25
Ending Balance, Weighted-average Grant Date Fair Value | $ / shares	$ 26.12

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rates on provision for income taxes	27.00%	42.70%	35.80%	43.40%

Related Parties - Additional In

Related Parties - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Chief Executive Officer
Related Party Transaction [Line Items]
Aggregate payments for use of airplane	$ 0.3	$ 0.7

Fair Value of Financial Instr72

Fair Value of Financial Instruments - Additional Information (Details) $ in Millions	Sep. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Fair value of interest rate swap	$ 0.7

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Litigation reserve	$ 2.2	$ 1.5
Litigation reserve amount increased	$ 0.7

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands	Oct. 16, 2015USD ($)Beds	Oct. 02, 2015USD ($)$ / shares	Oct. 01, 2015USD ($)CenterBedsProgram	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Subsequent Event [Line Items]
Proceeds from long-term debt				$ 73,802	$ 4,053
Maturity Date				Aug. 31, 2019
Subsequent Event | River Oaks Facility
Subsequent Event [Line Items]
Number of residential treatment beds | Beds	162
Construction and development costs	$ 18,800
Subsequent Event | 2.50% Subordinated Convertible Debt Maturing September 30, 2021
Subsequent Event [Line Items]
Debt instrument, face amount		$ 25,000
Debt instrument additional borrowing capacity		50,000
Proceeds from long-term debt		$ 25,000
Interest rate		2.50%
Maturity Date		Sep. 30, 2021
Conversion price per share | $ / shares		$ 30
Subsequent Event | 12.0% Unsecured Subordinated Convertible Debt Maturing September 30, 2020
Subsequent Event [Line Items]
Debt instrument, face amount		$ 25,000
Interest rate		12.00%
Maturity Date		Sep. 30, 2020
Proceeds from long term debt commitment for acquisition		$ 25,000
Subsequent Event | Sunrise House Foundation Inc
Subsequent Event [Line Items]
Number of patient substance abuse treatment bed | Beds			110
Number of halfway house bed | Center			30
Number of outpatient programs | Program			2
Business acquisition cash acquired			$ 6,600