ACHC - Earnings call 2 2023 | Acadia Healthcare Company, Inc.

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Operator

Good day, and welcome to the Acadia Healthcare Second Quarter 2023 Earnings Conference Call.

[Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Gretchen Hommrich. Please go ahead.

Gretchen Hommrich

Good morning, and welcome to Acadia's Second Quarter 2023 Conference Call. President Relations Vice Acadia. Hommrich, Gretchen of for Investor I'm harbor with the Executive I'll you safe Officer, before Hunter. Chief first provide our our turning to call Chris over

today's non-GAAP is extent financial the any discussed To in call. measure

You XXXX, will that the forward-looking website to contain directly conference most financial Litigation Investors within the by statements, according reconciliation viewing financial the calculated release on Acadia's measure link. of under measure regarding the Securities to of and performance comparable beyond. annual GAAP find also statements a of meaning our yesterday's news Reform Private expected Act call including XXXX and others, among may quarterly for This

forth statements be release. the that in are with results the forward-looking the and in Securities the cautioned and You materially Exchange set actual discussed the consequently, affected may news Acadia's may quarter hereby differ company's second from Commission filings important these and by operations in And others, factors, statements. among results

this remarks. time, Executive for would Hunter, conference the Chris Officer, our turn opening over to to call Chief At like I

Christopher Hunter

Thank Acadia's you, Conference Quarter good Gretchen, you Call. Second XXXX with us everyone. for Thank being and for morning,

we reported second across the results For quarter, measures. multiple impressive

across to executive-level growth Resources the General expertise we valuable success, and the deep experience Dixon, the also also company's with and Judith I thank Financial to welcome of our Officer; experience as who the bring company President, And the Heather is several the provider Both know confidence made Acadia's want best. this Chris for Heather Given and new Farley, them in outstanding momentum we're Scimone, includes Howard Human started payer, welcome leadership our for landscape. We're continued our strong additions wish make care our contributions and they these increasing year. eager they acknowledge Secretary. with in Officer. financial but to David as I performance, first, Counsel contributions and performance this This significant Judith I'm to pleased earlier business, Chief roles. team. Brian to the guidance Executive our Vice discuss our and new health and and Chief we our we new substantial brings pharmacy Brian of as their Duckworth want leaders, very respective support in month will

Turning the quarter. to

results in business Our quarter through first reflect second the continued momentum half of our XXXX.

EBITDA income EPS back growth of X.X%. million $X.X from revenue second fund XXXX, the quarter of Excluding XX.X%, relief growth in adjusted of year-over-year XX.X% provider of and recognized we reported adjusted of the growth

We service payers. are growth increased achieved lines, by across favorable patient rate with same service of period all XX.X% pleased and with CTC, lines. performance revenue X.X% markets growth X.X%, of across is day per Same day increases including Notably, and trajectory with solid of growth compared strong the business our last our year. facility revenue which we the supported

XXXX in XXXX. to In the continued wage quarter sequential with line of first with from our inflation X.X% improvement labor the X.X% see of forecast, our to we decreasing quarter in trends in second

with moderation our are While has stability the team pathways continued environment X same, The of the the company distinct positioning signs year. not an execute year. overall markets this progress growth wage significant to for continues all basis, show the made in labor improvement, growth to of the on on continued remainder over

total second to we facility to XXX first added bringing in For beds facilities to the our additions quarter, existing pathway XX beds date. expansions, the

expect consists add years. a We total XXXX, approximately of to prior XXX to beds in

Behavioral which well year. novo expansion hospital on a hospital Both this de XXX-bed -- California. operations in are are of as the is wholly-owned inpatient good newly de Chicago, towards progress open beyond. in to outpatient schedule we to Montrose plan later actively accelerating expected facility, and renovated making For our an Illinois opportunities Valley hospital second pathway, We're XX-bed to Health and adult part commence open growth. of Indio, additional we're and Coachella And novo advancing in XXXX hospital, Health are Behavioral as actively our identifying

demand individuals untreated CTCs and a consequences, patients including network lead continues treatment second disability, of use to Our can disorder, with XX serious We're also and opened X CTC experiencing for chronic the affecting expand, quarter. nearly locations dealing nationwide, to new we that opioid in million medication-assisted potential relapse death. solid disease for

XX XXXX. of X in states are XXX network with our expansion of of on We at goal accelerating the CTCs adding least focused the in CTCs

will growth venture a partners, third partnership country announced XXth joint network. are Health that acute Southeast hospital expand to the Nebraska partnership proud our These a developing our Council additional XXth of XX line We our System hospitals New way, the and bed our joint for Hampshire, metropolitan for XXX-bed X extremely a recently into with expand New and Bluff, states, our Iowa. well will we Iowa Methodist a strategic and across service Health with as Regarding with continue in Omaha, and serve health this Nebraska ventures, hospital Solution area. we work as new Hampshire behavioral

expertise provide joint develop in and their services behavioral we leading these and other our experience communities. market in quality demonstrated have of the care health will established our ventures, with we presence respective to providers As combine

to respective we behavioral systems markets. hospital health look provide Additionally, and Bronson joint a needed their in Battle with Behavioral partner, early premier Michigan Pennsylvania. Health in XX hospital working Center Creek, our our venture care health partner, bed in in together quality to the XX Healthcare third Geisinger with Northeast another with We these bed opened forward quarter, Moosic,

of hospitals the hospitals XX partnerships represent years. JV next XX in hospitals over operation a total combined already XX Acadia's several expected Today, with XX to open and

growing pipeline venture pursue beyond. potential pathway We and and partners, continue to growth this a joint 'XX we'll have of important in

that Turning Centers, to XX-bed a City, our metropolitan acquisitions look of continue provider disorder, Utah mental health For specialty growth primary that serves in for Lake the strategy. substance services our yesterday about market. Salt to excited advance our Point fourth acquire use treatment We're pathway, announcement we

provides Centers a state of This enhance footprint service X new geographic intensive treatment Acadia's residential, outpatient in partial services, Point for extend line hospitalization including include specialty acquisition our and continuum into of Turning all a will our services. and to continuum service full Utah care lines.

XXXX. to expect in this We transaction close

we Our fifth seeking level and for that final the service our treatment. appropriate care offerings ensuring pathway patients is on improving focused and of have

our XXX through mentioned. X opening development targets opening XXX bed our XX select patients facilities hospitals the outpatient to growth after including X the we've of growth they since trajectory our which, X these calendar assist meet and XX quarter, hospitals, we XXXX in year stated adding X to partners, second de CTC locations, year-to-date, the follows: which we X and PHP services of Through the positioned maintain approximately the inpatient existing have to already leave of residential facilities, already completed for at treatment. early virtual XXX we least IOPs are inpatient options well During and treatment at expanded as with IOPs approximately JV strong additions in beds adding opened PHP and and by pathways, programs each third beginning opening novo quarter

our on In drive outcomes. we're investments to right demand to making expanding clinical enhance offerings market our favorable strategic service reach addition meet increasing the the for to and focused our services,

delivery. remain care our in and strive for consistent committed excellence the Importantly, enterprise-wide and We supports by operations. every to which we quality standard compassionate effective our to aspect platform, quality clinical set utilizing of safety

goal make to continue We technology outcome leadership to treatment investments for the platform, a deliver possible best and development, our patients. with in staff common our programming

As to Acadia underpin operations. technology we're continues strengthening that our committed and also grow, the to systems

on clinical ultimately, for the deliver complex standardization, workflow, electronic example, and is our Our medical clinician of quality and improving the patients. investment for care focused in records, efficiency we experience

dedicated foundational with monitoring patient safety. are technology, the to facilities. patient across implemented the feedback and provide are more care patient with quality and have times. safe we results come to real-time purpose Additionally, ensuring provides last patients safety commitment we've us care to staff, incidents. our our positive who XX grateful seen advance extremely progress fewer who for initiatives pleased to for investing our families clinical patient and helps treatment their for Through light execution lead over to employees and patient ensure darkest to we care our our in and months, us We're technology visibility our that continue This consistent which in during

financial point, turn I this results for to to call now XXXX in our discuss quarter guidance. the our over At Heather the will

Gretchen Hommrich

opportunities of with Chris, working I'm Financial with good forward team. everyone. Acadia honored excited significant you I'm team and this patients to further the has with our services leadership extraordinary today our Acadia's to sustainable and our Thanks, reach. morning, deliver to to to look Chief and enhance market to new Officer be as our care to and Chris value and stockholders, scope extend and management partner high-quality

Now looking the for at quarter. results the

second of performance continued $XXX.X last second growth the in million revenue momentum up solid through We XX.X% the quarter the half quarter Our for with XXXX. first year. over showed financial top line achieved of quarter,

of Provider During diluted $X.XX, to Acadia the for for established CARES of up to second XXXX. was of income quarter to second increased second attributable second the by Relief $X.XX XXXX. quarter $XXX.X X.X% million income Act, second Adjusted XX.X% recorded the the compared $XXX.X 'XX quarter for quarter of $X.X compared income. with quarter of million Fund for with the XXXX, the million XXXX EBITDA related adjusted per And the the stockholders share of company

and our income flexibility strong strategy tax providing of income us support impairment remain for position, second access organic capital XXXX to and maintaining loss expenses, to quarter on related the the effect. the growth financial future to and include Adjustments on We transaction-related investments. a focused

As $XXX.X facility our a credit Xx. net million million approximately revolving cash XXXX, and ratio had we equivalents XX, and $XXX cash in available $XXX of of with million leverage June under

to there Hills the consistent X-K, our guidance I accordance want have liability in professional have full with to reserves the XXXX, have on been we prior that I maintained periods. accounting in nothing this related the no we litigation with developments recorded year, our the matter, New new for related In and Mexico. Before Since and guidance, to we report. Desert regarding amounts updated discuss filing, on filed the July XX, verdict touch

intend We to are evaluating and all verdict. options the challenge legal

be commentary on matter providing will litigation, ongoing call. additional is not regarding this today's legal this we Given

Now turning to guidance.

$XXX adjusted As share affirmed. per for release, to in $X.XX guidance new $X.XX. includes $XXX a $X.XX now billion diluted all press million in year, increasing noted for the Please are billion, that our EBITDA and adjusted our refer earnings $X.X range we to a adjusted release of range to we to our of financial range million which full press metrics of nominal in and other a

include not future acquisitions, of the does impact additional guidance As recognition a income. company's reminder, release the expenses of or the provider divestitures, fund transaction-related any

With that, questions. open operator, for we're call the ready to

Operator

UBS. [Operator question Andrew Mok Instructions] Our first with comes from

Andrew Mok

Maybe first question on guidance. just

by by million. million estimates raised Street $XX and about beat You the $X guide

Just strengthening for seeing any And wanted to better pricing understand of color half would trends you the half and that helpful? to year? you're prompted the be raise on second back the outlook the outlook the that

Heather Dixon

the Sure. Thanks for question, Andrew.

So the are all, and things to half results just really that point that that first towards look to the for that want the strong have had we're reiterate the we to few very of year. confidence would of first a XXXX. And we I back operating half pleased I of trends the driving see to the

rates demand, and The trends, capacity additions. first is occupancy volume strong reflecting

the into year The our day. half per second revenue visibility improved of is back for the

full We moderate continue throughout the I labor to mid-single be year for to the expect year. continuing finally, costs And in point then that to digits. to would

Andrew Mok

the per is in Sequentially, sequential increases. decline? flat from hold steps you'll stepped Got that the it. of that the here expectation just back at increase down such of on we that quarter, the April SWB steps and the if trends And possibly look Can which year-over-year you patient year? meaningfully out in the some the half the today, booked labor. Maybe merit SWB flesh down historical a follow-up drivers over

Heather Dixon

Sure. Sure.

take those me a one at time. Let

see partially, QX. you're QX that's is from say, we would right. to coming through What So I some did seasonality

it's in those quarter, employee we merit geographic base quarter, addressed XX-XX increases categories, remember, split. cetera. through. But I you have the April, speaking, of of If the second the markets, have we about that the job come that first mean, come et remaining a XX% through, are according performance in our in those the to XX% generally and about

in have the the In addition, we of we payroll year. see through taxes that first that seasonality in quarter every come

that sequential and decline. to I that, would to overall. in that sure, we hold So for that flat say And a there's expect to you're that portion that moderate continue said, seeing of see

to to inflation down moderate we improvements about The of would continue to the We labor the that points see in throughout wage half QX the XXX see from year. that QX, and trends base continue. basis expect expect to would we to X.X% X.X% are in seeing went in and to back

Operator

Our Leerink in next question Partners. comes Whit with from Mayo

Benjamin Mayo

Welcome, I in management, just sort Heather. to around question. initiatives IT, start, specifically, Chris, maybe the back-office, just field-level of strategic standardization identifying mean functions. a cost maybe been you've opportunities think I administrative some

Just the some and numbers to of where cost growth you any around see those organic it? some maybe maybe the on largest functions side standardize of put to way opportunities some

Christopher Hunter

Yes.

and only employee has as the technology as things a in just I of not which roll on seeing everyone on opportunity order. the to but like on seeing the I extremely that more side greater we but seeing seen improvements And I those that to we we drive, really recruitment engagement evidence the installations efficiencies think not have continue investments that surveyors of will we're into been out uptick solid we'll -- that these think I business, have also would EMR being facilities term, those the in in outcomes. to had short and us front, able question, retention do clinical thanks an from some we're really for efficiencies for we're think feedback I also clearly, EMR number have a clearly in near to results and really only have safety achieve that were some IT our to facilities, have from helped see for where us the place, the we've date that of on ongoing. mean, in detail help been front know beneficial see Whit. an would we real as produce there that we have we will that regulators in seen us nice well. say the and the

as to in proven remote has And continue we the well. some improvement And put overall, to been going place remarks to in our on alluded well. to also see think been, how monitoring back that office then know that we prepared given paper-intensive we've of this time industry we're really able patients the software some as I to just just as goes has that benefits strong

acute So as I to out those mean, the some But broader just of the think across are to efficiencies. already. I EMR see the of that things. engagement the we side clearly, roll just surveyors employee engagement patient regulators on continue we'll our we continue is greater to and with already all these make facilities, are want the benefit I to and the side on point date seeing would also and

Benjamin Mayo

thoughts physician wondering views? to the on any program, the views support business? updated some OTP had states any schedule, the if are direct CTC on just the the question, maybe last on And fee settlement, impact now so of you disclosing updated proposal the And there, opioid

Christopher Hunter

for have actually at a level. central applying states been Yes. available by to funds we I dollars very to Usually, this date. now individual about dispersed Reuters allocated, settlement $X billion, continue only But process that receiving billion closely. $XX CTC, in report is the right the of have mean only the for that a settlement have again, we successful this saw on. this funding. XX county total watch and clearly, early funds publicly the for was There to been organizations earlier have summer apply we been statewide

really they there to just care, services that come and optimistic I that. housing and be wraparound our been positioned And continue to we'll management even case really But and think like just watching and capabilities early of continue things tracking support. overall, and it's some as for to still well like be very here. we these would it's bolstered grants think for But things over say days. harm-reduction date, continue I We've

remediation on that future be states XX% of received to has opioid by the has spent efforts. money is actually

great see. we about so and beginning And feel the that to transparency we're that

I settlement report worked expenditures, tobacco that publicly the explicitly XX XXX% have the settlements is promised states now way their think which really a contrast there's to out. to of

this the very well. our continue here. out. accelerate early on feel 'XX clearly, as to side and But it's to well to So these and still stages of team our CTC awards bolstered 'XX many ability just into We've they continue to come as positive about continue will into very win

Operator

A.J. with Our next comes Rice Credit Suisse. from question

Albert Rice

for little the more of to Just ahead. pricing the year back a on maybe bit first in half and the year delve

think, like the fourth I February of it in been quarter the release, that and you're possibility whether least on had, has what little just that feeling of created pricing to the half of at now. thoughts tend seeing does concentrate bit back been at that? into you the some It confusion side, the that level pretty Can gave at Medicaid better comment least any year more pricing moderation when was the a as hearing the you're sounds side, in on at I'm a little a sustainability robust. have about company baking discussion, the you're commercial right? You back on on you in actually there that guidance point, on the And

Heather Dixon

correctly. that hearing are you Yes,

into of the commercial and X. some average the the the see You but since are day and rates spoke the year last direct we the and as of experience course, we half the of July seeing second But anticipated you, time in of as Medicaid of half had visibility the by to continue the in previously. much we can, year. increases finalized back many digits. rate of moderation number mean rate payer, in increases correct which vary the mid-single market that revenue have We're per effective the I to dates more we've

now to of so see that And mid-single-digit that that's lines, the growth expect continued continued what for we'll including all service back across we're half the growth. year is projecting for CT

Albert Rice

It Okay. And had the interesting a when that minute with then in general we an know you. the And costs of a as on pursuing? And those if think and associated talking terms wondered all right? seem for thing like you're I I much development one hearing that of about losses potential about one. just that Turning a the that, maybe Maybe And might doesn't looks with You of like deal spend the managing was new headwind the There why Point seem in better that's just you're pipeline. forth the to the in pipelines. a little I'm opportunity? pipeline so M&A follow-up, time like that case? start-up be development

Christopher Hunter

I the able health This geographic and first us, don't is of for that this announce A.J., on But have let mental point, to and speak in services. opportunity feel great Why been that the Yes, start-up transaction. loss we the we treatment have the this mean, is time to Salt Chris. about of turning nice ability I'll take is City. Lake Point, first provider this disorder X Thanks all question substance I primary XX-bed Heather question. a use have. to specialty business X just Turning in you for region lines

end we integration lines one the to beginning our our transaction just the to close this the to is proprietary made also footprint, it other identified one are of extend the is sourced related of had on This and particularly This specialty but to that. ourselves. where business, expect just work a year with and We ability synergies that our by attractive. already

add back that historically time. those have to the we opportunity have to beds they really most currently successful XX when Acadia, ability this at been have one the that looked acquisitions incremental can over where have is And we XX has we beds proven expansion And at important. think an

transaction. first the we the that accretive year. And So end until for was close expect, be won't factor that acquisition on of really will while year, this a this deciding do its in the us

to question? So Heather, start-up to loss you the do want speak

Heather Dixon

Sure.

In $XX in terms consistent. a that million that those losses, amount of to to be year, and be with be million, saw We per do continue continue the expect them fairly roughly and to to of QX between million we what we $XX consistent same for we project usually $X.X start-up and that's to would quarter. expect

opening ramp about think stable. that then moderate roll think we how out openings to how expect about you and of As the we and facilities stay the that that of just scheduling we pretty calculation, roll in new facilities

Operator

from John Ransom comes question with next Raymond Our James.

John Ransom

as you for number out about ceiling number to been. Number pre-overhead two, they've your think you the A hospital me. one? as look an per for idea one, the if And look X-parter out roll those is like high they're have like you What EMR? do -- what your spending at then roll you going when margins, is margins, fully

Heather Dixon

I the I'll see you're of we asking over speak stabilizing what corporate would... that the maybe is overhead period, think if cost. to And So period to sort we

John Ransom

I'm asking the you high pre-overhead no, for no. today? it's pre-overhead -- feeling you hospital actually is XXs, think the you margins margins do as do is the the not What sit pre-overhead. think in feeling hospital what No, the

Heather Dixon

Okay. understand. I Thanks.

-- we that we be those continue to a look we see that contribute. say will would at as expect can we strong I So what margin continued

John Ransom

the spending EMR for And then hospitals?

Christopher Hunter

John, can question that. -- out on cut EMR? of tail the you Yes, around sorry, the was end you specifically What

John Ransom

Sorry.

range kind as you item? Day. a on about landed Analyst a of that at line spending, your have and So the rollout schedule per provided you your think hospital EMR, a you EMR cost But on

Christopher Hunter

very Day to CapEx we're say very between Investor We still say we've We're there. I out out still consistent. broke in I continues be that and much OpEx. I through what tracking Yes. working And that. mean, would laid that our would

roll to up looking can little sense a EMR that we've one early Right acute is now, plan we're had given we to bit bring of faster. these even a at, number we've results the go think things we're Investor just a of per not us our Day on facilities out I continued what facility continues a the facilities help as looking it be have very all acute -- track. would been And an with of at at others most over make importantly, I haven't attractive very disclosed think for much that, accelerate still closely period. but we're to cost X-year laid the on to we whether or we out

Operator

Fishbeck Our next of question from comes Bank Kevin with America.

Unknown Analyst

how Can This is for half on of Nabil you you the volumes trended the are across how segments different talk second Kevin. thinking about in in the the And quarter? growth year? about

Heather Dixon

Sure.

the seen strong the in we focused roughly really patient we've to has So few acceleration. same census have X% record point that to levels growth And and patient of attribute volume some X been volume opportunities XXXX. last second in saying. and us identified during have volumes to been been X% growth the percent that to a facility really demand delivering growth things. X% we've highly we've on to quarter, range, for as led expectation We really X% years The

First is across lines. the service demand

Second and and is processes. our optimization admissions marketing

the that to driven year. X% mentioned. the in the in driving half bed We us range that be that for that's X% really the to rates combine added with hit first that well then what's point XXX that half And XXXX. the additions that to to of demand occupancy stronger 'XX, XXX then of positioned, I half the another and Third, I'd and second finally, the think, recent we had execution. And by of just we second are we operational

Unknown Analyst

you what then And follow-up, us your assuming provide the an for redeterminations update on guidance and on can the is impact?

Christopher Hunter

focus since been our just on of continued last and redetermination the now Chris. Oregon a X of for to service across is is all company July as really except every be our lines. major This Sure. states launched. And We've year working late for X, of

said, completed way only our many So continue that all into disenrollment redetermination a of XXXX. to the of states fraction XX% through spread the to patients say, due that would so have I the these way under

So Medicaid as our awards XX% we're results because RTC say those patients are are good I we've seeing protected in line, coverage. state. previously patients discussed, the our of increasingly early maintaining on service children of would

Medicaid continue where line, recipients county-level in volume. working patients Medicaid our unique just on have the service And very those closely have ensure we side, that for we funding CTC also to specialty our backstop patients with I are then to our in that On mean due could line visibility Pennsylvania place, place some protected with to the they most moving specialty we in our in we encouraged seeing overall, few cases. so there to these whether many by as put hot disruption. have the centers. patients kiosks be use of to We're really some But work a ability patients self-pay we're in the we that put to

been And in everyone I'd to has X out -- that the in point of states. some disenrolled a data done Kaiser handful million that action said to think CMS's would about the successful early it's people clearly, began since been have this out. continuity came Medicaid of I redetermination I mean, Maybe for April. And it's ensuring month, Foundation very pause Family that of I things read other just overall. redetermination point in of care a couple

XX% ineligibility disenrolled, for to being due procedural Medicaid. those to disenrolled were rather due Of reasons

clearly, CMS states So encouraging slow of to is process a number just the down.

continue We way of pretty variation in handling to states are the terms wide some see redetermination. that

really unwind Michigan the examples they're loading disenrollment taking scheduling member of Florida. members have really in states the are would there. where approach Oklahoma period be the back-end early a that and are opposite you some Others like So

be would just transparency examples potentially and opportunity in an lose reach some seen have Tennessee working coverage. patients be there. removed that well. doing really us being out are proactive of we've that from job to roles, also Medicaid That the to Virginia going these a states into of and great You giving and advance gives to us are to when patients

in still So to but process The all, with of and 'XX, track a believe we to say We're impact all continues on particularly well pretty going continue does early. to levels, the very to is stay it's today. align that be I'd overall view. just number to early experience significantly closely in more, very our continuing it

Operator

Gary Yes. next with question Cowen. from Taylor comes

Gary Taylor

quite Just I clarify. there. X.X? are make the contract figure? Is I just wage a if about in couple time labor I going know to One, you When defining reconcile inflation, talk how When that? we over just can you questions. of how reported can't that that, only the talk that. at since don't I But X.X understand to you you just want about or would rate, hourly to excluding we define benefits, look average want be sure

Gretchen Hommrich

are You that that board. but correctly. the stable across They are excluded, would add thinking about they're I

Gary Taylor

investment facilities you're Bronson how just be my just novo Okay. balance how near on hopeful But you're like X have medical any other of question, credit on that on term. even fairly material de terms will settlements. since My Is new impact then no availability, in know sounds this you're impact thinking management be -- say about retaining that to reversed does it any And point? -- willing to out. on it you're I there the the though, or make material the about in just anything it on second is at would thinking appeal. sheet

Christopher Hunter

as core extremely and company that on just question. our would things out say I the to to obviously the seen business the I from Investor the can an you on we've in for continue announcing focused we execution X Thanks we JVs and This just and tracking Yes. M&A And closely. are this continuing few the deal, laid we all advance Chris. Day. very that last that think the is and weeks be tell

detail talking as not are we're that not litigation be on And about we super material given think see the to do the we focused our results any and going change but at underway, all. reflect. that, is in So obviously, I business

Operator

question The next comes Bank. Chickering from Deutsche Pito with

Pito Chickering

digits Congrats excellent the team. follow-up continuing range. X make years question. above an A on would at and single pricing over mid-single-digit Heather of that year, pricing or the the A.J.'s to mid with welcome quarter in tracking to half of back sort gets With

that confidence right the sort the we thinking your half level As you you XXXX? look sort should for is that back of be about at today have contracting year, in of

Christopher Hunter

that true we're built prepared really year this and the for care with inflationary the the really think comment coming strong understand say of we're I that our is the I with doing beginning with helping our levels But team to Peter, quality of work wages, discussed job partnerships Thanks payer that the question. XXXX the year. we've continued And reimbursement are we've rates. acuity managed the to continue half good partners. over that to to to the continue strong we I that closely and very would meetings Chris. we don't to our we leveraging think in in of seen, of hold the second have that Yes, think we're a those payers and a patients, on achieve impact period on our care of I multiyear payers providing, the really yet. ready

Pito Chickering

on Okay. then CDC. one Great. And question

you splits more care drugs near services fee payment providing unbundled counting model do clinics, model to managed term today's from of reimbursement the medication like providing away a between methadone or drugs look as you an where from provide shifting a the payments services? of for model the As in those you're another the a paying and monthly bundled see and into at

Christopher Hunter

seeing the time regular right of seen in with we -- obviously all And Yes. we're I our there at basis. question, payers and say have contact as that isn't It's on that we're any not negotiations that Pito. now. close very trend unbundling movement a thanks in We're all for the towards extensive doing would

Operator

The follow-up John James. with Ransom question a from is Raymond next

John Ransom

the with And take wanted options just of kind from any were MAT. [indiscernible]. what some therapeutic I in concern that sort just about opportunity new back your the modality? if is There marketplace wondered the seen deterioration in that, circle I on some to of you've on

Christopher Hunter

going in oversight treatment site across annually. at Methadone would compliance our to important. And our I well. the Well, came say continue and X,XXX continuously and is regulatory is OTPs. They we've standard with looked programs just we surveys I approach think, as that to the percent which they're CARF, to be that for Acadia XX-plus well, provide would continues a the thanks, body provides I outperforming as buprenorphine feel other doing mean board, of I continue very But say -- comfortable overall. be quality assessed gold outcomes, opioid Yes. our for we as treatment. at the John. to all

to So feel continue we just really our good model. about

dispensing As counseling treatment their It's chronic chronic in them continuing over as It's we they as required. not a in particularly says, engage this the in period it's of say more the these engaging just stages the members and early treatment of their Nosercon, frequently pronounced program, that these patients a that where to is -- not addiction is leader a time. there's and physician where our treatment, evolves of treatment. is business pill as

So we any seen trend. not have

I seeing number emergency. largely strong data not the good leadership was per in the team that And flat continue very think changing up health that the and and we public month place. of referring really We're any and doctors health buprenorphine to continuing XX public health relative clearly put allowed patients the you outlook emergency remained we're in just just we've to be saw feel business which trends. to to for during care may see written of the to that volumes the to about pre-public provide emergency, scripts

Operator

Our next with Brian Jefferies. question comes from Tanquilut

Brian Tanquilut

in should it historically, How business, welcome but to about seasonality versus QX? I Congrats, and we RTC QX question, my there think thinking business, first driven be was Heather. the QX, gotten trend has the guess, Heather, sequential as by pre-COVID, I largely smaller. about the

Heather Dixon

with of I trends would trends sequential welcome continue. think sort expecting would and we've the sequential to that we're that consistently about for a and seen. question. the see And it I for that Thanks,

think previously I from expectations So seen what line the you've in and perspective. just with seasonality a

Brian Tanquilut

those Okay. operationally you through Got coverage-wise are will thinking or flow think Chris, it. efforts dental How health do I to how some of like successful, these as new which are -- parity. in stuff that then And if you about think Acadia?

Christopher Hunter

that Yes, the recent out still to trying mental payers demonstrate here to that it's probably they're to Act going mean parity up a mean, bit health that Parity clearly, regulators. was Biden you're for great rules impact the question the And and referring administration's proposed little all efforts to to Mental in will I X think Health how ensure show we're analyze. a these put back payers place is way put the be I I way to still determined. federal XXXX. that

been historically inconsistent and and this which So federal pretty limited around has both government. for legislation state The enforcement, by has decades. question been has been around

So impact it But we downstream on the in will focus of applaud and ultimately terms this. what will be impactful the be. how

I just it's tell. us think -- bit to for little it's a early

comment the in first rule on public public waiting XX. July on mention of we're in detail after some that. The And a still additional came period

So that just have adjustments much point. lead it's tracking overall could we're time, to something at don't we really over visibility to this but share

Operator

This concludes I turn closing to to for any conference Chris the our session. back Hunter would over question-and-answer like remarks.

Christopher Hunter

you. Okay. Thank

confidence have want country really work across the clinicians needs and have all reinforces all for you day, We into of in we every a outstanding Acadia. facility platform at who this with Before employees work creation a momentum for do and have our for the and hesitate in an leaders, follow-up. dedicated your growth and do the us patients to manner. our the safe future Have interest committed And day. in thank contact directly everyone. all, effective value the end now call, if not our you tirelessly us meet in please to continued the being business great that XX,XXX all right to to I you Thank and just questions again and any approximately the morning

Operator

for concluded. today's presentation. now has conference The Thank attending you

disconnect. now may You

Acadia Healthcare (ACHC) 28 Jul 232023 Q2 Earnings call transcript