Acadia Healthcare and Ascension Seton Form Joint Venture to Expand Behavioral Health Services in Austin

Rhea-AI Summary

Ascension Seton and Acadia Healthcare Announce Joint Venture to Expand Behavioral Healthcare in Austin, Texas - ASCN

Healthcare Industry Analyst

The joint venture between Ascension Seton and Acadia Healthcare is a strategic move within the healthcare sector, particularly in the behavioral health niche. The expansion of Cross Creek Hospital by 106 beds represents a significant increase in capacity, which is likely to address the growing demand for mental health services. The partnership's focus on the employment of Ascension Seton Shoal Creek’s inpatient behavioral health associates ensures continuity and could lead to a higher retention rate of experienced staff, which is crucial for maintaining quality of care.

In terms of market implications, this expansion may lead to increased revenue streams for both entities due to the broader service offerings and the enlarged capacity to serve more patients. It also positions the joint venture as a dominant player in the regional behavioral health market, potentially increasing market share and influencing local competitive dynamics. Furthermore, the collaboration with Dell Medical School could enhance the hospital's reputation as a center for excellence and innovation in mental health care, possibly attracting more professionals to the region and fostering a pipeline of trained specialists.

Financial Analyst

From a financial perspective, the capital investment in the expansion of Cross Creek Hospital is indicative of the confidence both Ascension Seton and Acadia Healthcare have in the long-term profitability of the behavioral health sector. The commitment to employ existing Ascension Seton staff could also mitigate financial risks associated with staff turnover and retraining. Investors and stakeholders should monitor the utilization rates post-expansion to assess the return on investment (ROI).

Moreover, the joint venture may have implications for the cost structure of both organizations. Economies of scale could be realized through shared resources and operational efficiencies, potentially leading to margin improvement. It is also important to consider the potential for increased bargaining power with insurers and suppliers due to the expanded operation, which could further enhance financial performance.

Medical Research Analyst

The emphasis on behavioral health services is timely, given the increasing awareness and destigmatization of mental health issues. The partnership's commitment to employing a teaching component aligns with the current emphasis on evidence-based practices and the integration of research into clinical settings. The training of students, residents and fellows could contribute to the advancement of behavioral health treatments and protocols, ensuring that the latest research is quickly translated into patient care.

It will be important to track patient outcomes and satisfaction measures following the expansion to evaluate the impact of the increased capacity and new services on the quality of care. Additionally, the potential for collaborative research projects with Dell Medical School could result in publications and studies that further the field of behavioral health, contributing to both organizations' prestige and potentially attracting research funding.

AUSTIN, Texas--(BUSINESS WIRE)-- Ascension Seton and Acadia Healthcare announced today that the two organizations have formed a joint venture to expand access to behavioral healthcare in Austin, Texas, and surrounding communities.

The joint venture will focus on expanding Acadia’s current operations at Cross Creek Hospital, as well as the number of inpatient behavioral beds available in Austin. Acadia will construct a 106-bed expansion of the acute behavioral hospital, increasing the total licensed bed count to 196 upon completion. Acadia has committed to employ Ascension Seton Shoal Creek’s inpatient behavioral health associates at the newly constructed expansion, set to open in late 2024. Ascension Seton will continue to operate the Grace Grego Maxwell Mental Health Unit, a pediatric unit focused on mental health located at the Dell Children’s Medical Center.

The joint venture hospital will be in close proximity to Ascension Seton hospitals and will be one of the training sites for students, residents and fellows from Dell Medical School.

The Cross Creek expanded campus will be warm and welcoming with the mission to promote health and healing. The new hospital will be named “Cross Creek Hospital together with Ascension Seton.”

“This hospital will be a tremendous resource for those living in our community, including those who are most vulnerable, and we’re thrilled to bring together the expertise and capabilities from our two great organizations,” said Andy Davis, president and chief executive officer of Ascension Texas. “Acadia has an established track record of expanding access to high-quality, compassionate care in communities across the country. This joint venture will build upon our expertise while increasing the number of behavioral health beds and other behavioral health services available to patients throughout the region.”

Ascension Seton selected Acadia as their joint venture partner because of Acadia’s shared commitment to high-quality, compassionate, mission-driven care to improve the health of the individuals and communities they serve. Ascension Seton’s decision was further solidified by Acadia’s proven track record in joint venture partnerships and the existing relationship with the health system.

“Ascension shares our commitment to expanding access to high-quality behavioral health services and reforming the way mental health patients are seen and cared for,” said Chris Hunter, chief executive officer of Acadia Healthcare. “This joint venture presents a unique opportunity for us to expand services to an existing location with a world-class partner. At the same time, the teaching component of the hospital is a commitment by both organizations to the future of behavioral healthcare and will provide the region with qualified clinicians for years to come.”

About Ascension Texas

In Texas, Ascension operates Ascension Providence in Waco and Ascension Seton, which includes Dell Children’s Medical Center, the region’s only comprehensive children’s hospital and pediatric Level I trauma center, and Dell Seton Medical Center at The University of Texas, the region’s only Level I trauma center for adults. Ascension Seton partners with Dell Medical School at The University of Texas at Austin and shares a common vision of transforming healthcare through a focus on quality and value. Serving Texas for more than 120 years, Ascension is a faith-based healthcare organization committed to delivering compassionate, personalized care to all, with special attention to persons living in poverty and those most vulnerable. Ascension is one of the leading non-profit and Catholic health systems in the U.S., operating 2,600 sites of care – including 139 hospitals and more than 40 senior living facilities – in 19 states and the District of Columbia. Visit www.ascension.org and www.dellchildrens.net.

About Acadia Healthcare

Acadia is a leading provider of behavioral healthcare services across the United States. As of September 30, 2023, Acadia operated a network of 253 behavioral healthcare facilities with approximately 11,100 beds in 39 states and Puerto Rico. With approximately 23,000 employees serving more than 75,000 patients daily, Acadia is the largest stand-alone behavioral healthcare company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108568081/en/

Gretchen Hommrich

Acadia Healthcare

(615) 861-6000



Jennifer Hudson

Ascension Texas

(512) 743-0338

jennifer.hudson4@ascension.org

Source: Acadia Healthcare

FAQ

What joint venture was announced by Ascension Seton and Acadia Healthcare?

Ascension Seton and Acadia Healthcare announced a joint venture to expand access to behavioral healthcare in Austin, Texas, and surrounding communities.

What is the name of the new hospital being constructed through the joint venture?

The new hospital will be named 'Cross Creek Hospital together with Ascension Seton.'

When is the expansion of the acute behavioral hospital set to open?

The expansion of the acute behavioral hospital is set to open in late 2024.

Why did Ascension Seton select Acadia as their joint venture partner?

Ascension Seton selected Acadia as their joint venture partner because of Acadia’s shared commitment to high-quality, compassionate, mission-driven care to improve the health of the individuals and communities they serve.