Acadia Healthcare acquires Tenn. hospital

Acadia Healthcare Co., Franklin, Tenn., is further expanding its portfolio with a second acquisition this year.

The publicly traded behavioral healthcare company, which has seen its share price double during the past 12 months, said it has purchased 170-bed Delta Medical Center, Memphis, Tenn., which offers both psychiatric as well as general acute-care services. Terms were not disclosed.

In a news release, Acadia Chairman and CEO Joey Jacobs said the deal "gives us the opportunity to treat acute inpatient psychiatric patients with medical complications."

While many of Delta’s beds are for acute inpatient psychiatric patients, the medical center also offers services such as cardiology, hyperbaric wound care, sleep studies, surgery and an emergency department.

Jacobs said the company continues to evaluate other potential acquisitions in the “fragmented and underserved inpatient market.”

Acadia last month forged its first deal with a not-for-profit organization, acquiring a psychiatric hospital from South Georgia Medical Center, Valdosta.

Kevin Campbell, a managing director at Avondale Partners, said in a note to clients that the two acquisitions show Acadia’s willingness to pursue deals that move beyond its traditional interest in for-profit, acute inpatient psychiatric facilities and residential treatment centers.

He said Delta generated between $30 million and $50 million in total revenue for its fiscal 2012, which ended in March, and posted an operating loss of $2 million.

With the latest acquisition, Acadia now operates 17 hospitals.