Acadia Healthcare Says It Faces New Federal Investigations

Published On Sep 27, 2024, 11:25 AM

Acadia Healthcare, one of the largest chains of for-profit psychiatric hospitals in the U.S., is under federal investigations regarding its patient admissions and billing practices. The company disclosed receiving subpoenas from a grand jury and inquiries from federal prosecutors. This follows reports of potential violations regarding holding patients against their will and inadequately providing care. Acadia's stock plummeted by about 25% following the announcement of these investigations and a prior settlement of nearly $20 million for similar allegations of wrongdoing without admitting guilt.

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The investigations and the significant drop in stock price indicate serious troubles for Acadia, reflecting investor concerns over ongoing regulatory scrutiny and potential financial liabilities. If these investigations reveal more evidence of wrongdoing, the company could face additional fines and operational restrictions, impacting its profitability.

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