Orlando Health and Acadia Healthcare form a behavioral health joint venture

Orlando Health and Acadia Healthcare form a behavioral health joint venture



Orlando Health Announced on Tuesday Another partnership with a for-profit company provides outpatient services, this time around behavioral health.

The non-profit health system said it has formed a joint venture with the public company Acadia Healthcare, the country’s largest independent behavioral health provider, to expand behavioral health services in central Florida. Orlando Health will own 30% of the new for-profit enterprise.

Greg Ohe, senior vice president of outpatient services for the health system, said the deal is aimed at expanding Orlando Health’s existing inpatient and outpatient behavioral health services, which are currently limited. The two companies have not specified what their partnership will look like, but Ohe said it may eventually include the construction of a new behavioral health hospital.

Currently, Orlando Health’s only inpatient behavioral health department is located at South Seminole Hospital in Longwood, north of Orlando. Acadia will take over the management of the program. Ohe said Orlando Health’s outpatient behavioral health services are also “quite limited,” but the health system hopes its joint venture with Acadia will increase these services.

Under the agreement, Orlando Health will continue to provide all staffing for its behavioral health plan. The health system has seven psychiatrists as well as senior practitioners and social workers. Acadia brings management expertise.

“We conducted a lot of due diligence on them and their approach to healthcare, especially in this case, behavioral healthcare is comparable to our approach,” Ohe said. “They have embraced some of the same values ??we did when handling patient care.”

Orlando Health is no stranger to working with for-profit companies that provide outpatient services.Last year, it was with Listed LHC Group Provides family health and community services in four cities in Florida. The structure of the transaction appears to be similar: A joint venture, LHC, headquartered in Lafayette, Louisiana, purchased a majority stake in the joint venture.

Orlando Health also reached an agreement with a private equity firm FastMed Urgent Care, Through its newly acquired CareSpot Urgent Care, operates more than a dozen joint clinics.

At the same time, Acadia, headquartered in Franklin, Tennessee, has made significant progress in the field of non-profit providers in recent years.Earlier this year, it established a Joint venture with Geisinger Health Provide inpatient behavioral health services.

Acadia has a total of 13 health system partners. The company disclosed Recent financial report. This includes planned hospitals Henry Ford Health System, Scripps Health with Covenant health. Arcadia Brought in revenue of $2.1 billion In 2020, approximately 570 behavioral health facilities were operated in 40 states.

Acadia Operations Group President Dr. Jeffrey Woods said in a statement that his company has strong and experienced leaders.

He said: “We look forward to working with the Orlando Department of Health staff to continue to provide excellent care and explore ways to expand access to meet the huge demand in central Florida.”

An Acadia spokesperson did not respond to a request for comment after the press release.

Orlando Health is headquartered in Orlando and has 10 hospitals. In the 2021 fiscal year ending September 30, the health system’s operating income was US$4.5 billion, operating income was US$152 million, and the operating profit margin was 3.4%. This is lower than the 2020 fiscal year, when its operating profit margin was 8.5%, or $3.9 billion in revenue and $328 million in revenue. The 2020 results include more than $82 million in federal stimulus funds, compared to only $570,000 in 2021.


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