By MATT BLOIS
The Franklin-based behavioral health company Acadia Healthcare Company reported earnings in line with the company’s expectations for the first quarter of 2019.
Acadia reported $29.5 million in net income. That’s about 41 percent lower than the same period last year, when the company earned about $50.8 million in net income.
The company reported a 2.5% increase in revenue compared to the same period last year. It earned about $761 million in revenue in the first three months of 2019 and $742 million in early 2018.
Despite the increase in revenue, expenses also increased by about 4% compared to the beginning of 2018. The biggest increase was for salaries, wages and benefits.
The company added 260 beds during the first quarter. Two new facilities accounted for 160 of those beds, and Acadia added 100 beds to existing facilities.
Acadia also announced on a conference call with investors on Wednesday that it plans to add 44 beds to one of its facilities in Arizona.
The performance of Acadia facilities in the U.K. hurt the company’s bottom line in the third quarter of 2018, but executives pointed to some signs that the finances for those facilities might be stabilizing.
Total revenue and revenue per day both increased by just over 4%. However, admissions remained mostly flat compared to the same period last year.
CEO Debra Osteen said that the company has been working with the National Health Service in the U.K. to increase some fees.
“I think that NHS has worked very well with the team to recognize the cost of some of the high acuity patients,” she said on a conference call with investors Wednesday morning. “We have seen a higher percent of fees than we would have expected, but frankly we don’t think they still don’t adequately cover our costs, but we think that NHS has made some steps to try and help.”
Facilities in the U.K. account for just over a third of the company’s revenue. On the conference call, Osteen also said Acadia wouldn’t comment on rumors about the possible sale of the U.K. division.
Acadia has been working with an outside consultant to optimize the company’s operations. Osteen said the company should be finished with that review in May and is planning a conference call with investors to discuss the review at the end of the month.