
“And so it’s also not overly material from a financial standpoint to begin with.”
Chris Hunter, CEO, Acadia Healthcare, August 1, 2024
Mr. Hunter’s statement was made to investors at an Acadia quarterly meeting. The statement pertains to Acadia’s response to a scathing report issued by the Senate Committee on Finance.
The question and answer were as follows:
Ben Hendrix
“And just if I could ask 1 on the legislative and regulatory backdrop. Your peer, UHS, noted little fallout to date regarding the Senator Wyden investigation into RTC. So I was just wondering kind of what you’re preparing for or expecting could come down the line from a legislative perspective, whether it be transparency, oversight, minimum staffing, et cetera?”
Chris Hunter
“Yes. I would say we just haven’t seen any real impact from the Senate hearing in the report. I think we believe that the people that deal with this patient population every day, and that certainly includes our referral sources, as well as the various regulatory oversight bodies that are routinely in these facilities, understand that this is just a really difficult population. I think they also understand that our facilities are providing high-quality care to this population, and we demonstrate that routinely with the outcomes that we’re able to achieve. And so we just haven’t seen impact. I’d also point out that our RTC business is small. We only operate 9 facilities. It’s about 11% of our revenue. And so it’s also not overly material from a financial standpoint to begin with.”
This statement was made on August 1, 2024.
Mr. Hunter’s statement was made approximately six (6) weeks after a scathing report was issued by the Senate Committee on Finance. A few of the more alarming conclusions were as follows:
- Children suffer routine harm inside Residential Treatment Facilities (“RTF”). The risk of harm to children in RTFs is endemic to the operating model.
- Horrific instances of sexual abuse persist unremediated inside RTFs.
- RTFs often employ unqualified or inadequately trained staff and that staff routinely fail to discharge their duties. RTF staffing failures have led to tragic incidents, including child fatalities, and childrens’ repeated exposure to risk.
- State and federal oversight authorities fail to effectively identify and address harm to children in RTFs. When RTFs correct deficiencies, their efforts are remedial rather than company wide.
Mr. Hunter made this statement after he knew or should have known of the existence of 194 pages of statements made by victims, parents and former employees of residential treatment centers. These 194 pages are embedded here:
Mr. Hunter made this statement after he knew or should have known a patient in Timberline Knolls was allegedly raped three (3) times by an employee of Timberline Knolls in May 2024. These alleged rapes were reported to the staff at Timberline Knolls that same month.
Mr. Hunter made this statement even though a record of 911 calls for service to Timberline Knolls obtained by CBS News Chicago Investigators showed dozens of calls related to criminal sexual abuse or sexual assault since 2018.
Mr. Hunter made this statement even though the Lemont Police Department stated that it had received 546 calls for service from Timberline Knolls from 2023 – 2024.
Mr. Hunter made this statement even though on at least eight occasions since 2020, the Lemont Police Department received reports from patients saying they had been sexually assaulted or abused, many of which involved juveniles.
I have not yet verified the veracity of the statements from the Lemont Police Department nor the Chicago CBS News Investigators. But what incentive would they have to prevaricate?
“And so, it’s not overly material from a financial standpoint to being with.”
With the reports and allegations of abuse from third parties, I can scarcely envision a more damning statement proving that patient safety takes a back seat to profits.
546 calls for service from Timberline Knolls from 2023 – 2024.
Dozens of 911 calls related to criminal sexual abuse or sexual assault at Timberline Knolls since 2018.
194 pages of statements made by victims, parents and former employees of residential treatment centers.
At least 1 daughter raped three times by an employee of Timberline Knolls before Mr. Hunter’s statement.
“And so, it’s not overly material from a financial standpoint to being with.”
Acadia and its feckless CEO are evaluating human suffering utilizing a measuring stick marked with dollars and cents alone.
And they have determined that human suffering, assaults, rapes, and egregious conduct are not material if they do not impact the bottom line.
From a financial standpoint.