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ACADIA’S TRAIL OF VICTIMS

Recent articles highlighted the many legal and financial issues plaguing Acadia Healthcare. Upon further research, additional legal and financial issues have come to light.

Lawsuits

There are now at least three lawsuits filed by disgruntled, angry investors. These lawsuits claim as a matter of its business practices and on a corporate wide basis, Acadia perpetrated fraudulent acts and engaged in acts of misconduct and malfeasance.

The oldest lawsuit was filed in 2018 by the St. Claire County Employees Retirement System on behalf of themselves and a class of other investors. The lawsuit alleges that throughout and before the Class Period,  Acadia, its officers and Board of Directors engaged  in  a  scheme  to  defraud  and  mislead  investors  concerning  patient  care,  staffing  levels,  and  legal  compliance  issues. Acadia has vigorously defended the case.  The Court granted class certification and the case is expected to go to trial in 2025.

Two other cases were filed in October 2024 after: Acadia was eviscerated by the Senate Finance Committee in a damning report in June 2024; the New York Times published a comprehensive article evidencing that Acadia was committing many wrongful and/or unethical acts towards patients; Acadia agreed to pay a $19.8 million fine to the Department of Justice and three states; Acadia agreed to pay another $1.38 million to the United States because of Acadia’s misconduct directed toward employees, and; the Veteran’s Administration announced it is conducting its own investigation into Acadia.

These cases were filed against Acadia, its CEO and CFO and prior CEO and CFO.  Amongst other claims, the lawsuits allege misrepresentation and fraud.

If found liable, Acadia could be forced to satisfy judgments in the hundreds of millions of dollars.

Administrative Fines

In September 2024, Acadia agreed to pay $19.85 million dollars to the United States for knowingly submitting false claims for payment to Medicare, Medicaid and TRICARE for inpatient behavioral health services that were not reasonable nor medically necessary.

Acadia also agreed to pay $1,386,000 to the Securities Exchange Commission pursuant to a Cease and Desist Order entered on September 9, 2024. In this investigation, the SEC found that Acadia had, as a matter of its employment practices, violated rules permitting whistleblowers to receive a reward payment for reporting Acadia’s employment practices to the appropriate federal agency. Acadia also required some of its departing employees to waive their right to file a complaint with any federal government agency.

These provisions created impediments to participation in the SEC’s whistleblower program by requiring employees to forego either their right to file a complaint with the Commission staff or the financial award they might receive for doing so. Through this conduct, Acadia violated SEC Act Rule 21F17(a), which prohibits any person from taking any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.

These agreements were signed by former employees 56 times between 2019 and 2023.

The Veteran’s Administration announced it was proceeding with its investigation into Acadia for violating laws pertaining to Tricare.

In May 2019, Acadia agreed to pay the federal government $17 million to settle allegations it defrauded Medicaid in West Virginia. The federal government alleged that a subsidiary [CRC Health, L.L.C.] of Acadia which owns seven drug addiction treatment centers in West Virginia, defrauded Medicaid over several years through false claims for laboratory tests related to the opioid epidemic.

Since 2000, Acadia has paid approximately $49,000,000 in fines to federal and state agencies for its egregious conduct.

Other Governmental Investigations

As previously stated, a Senate Committee Report and the New York Times (twice) eviscerated Acadia for its business practices.  On October 3, 2024, Adam Schiff, Senator-elect from the State of California, sent a letter on Congressional letterhead to Acadia demanding answers to eight (8) questions addressing a number of the improprieties.

One of these questions was, “Tim Blair, an Acadia spokesman, has publicly acknowledged that Acadia has deployed employees, referred to as “assessors,” throughout nearby hospital emergency rooms to support hospital staff. What specific services do assessors provide? What education-level and qualifications are required to work as an assessor? What specific training is provided to assessors by Acadia?”

The next day, October 9, 2024, Ron Wyden, Chair of the Senate Committee on Finance sent a letter to Attorney General Merrick Garland, requesting that the Department of Justice begin an investigation into the facts set forth in the Senate Report.

Private Lawsuits

In 2019, a lawsuit was filed against amongst other defendants, Acadia Healthcare. In that lawsuit, a guardian of an adolescent accused the Acadia companies of failing to protect a young girl under their care. The filing states that an employee of one of Acadia’s subsidiary companies repeatedly raped the child in 2018. The jury awarded the plaintiff $485 million dollars in damages.  Acadia initially stated it would challenge the jury verdict.

Instead, Acadia paid the plaintiff $400 million. $400,000,000.00!

There are at least four (4) lawsuits filed against Acadia and Timberline Knolls and criminal cases pending against Michael Jacksa, a former Timberline Knolls counselor.  Jacksa sexually assaulted at least six (6) patients at Timberline Knolls.

In 2018, Acadia through its wholly owned subsidiary, Ascent Children’s Health Services announced it was closing all ten (10) locations in the State of Arkansas. This closure displaced nearly 1700 children.

The closures were announced after the settlement of a Crittenden County Circuit Court civil lawsuit filed in July 2017 by Ashley Smith, mother of 2-year-old Christopher Gardner. Christopher died June 12, 2017, after being left in a transport van at the West Memphis facility for eight hours. Ascent workers signed documents showing that Christopher was taken inside the West Memphis day care center, even though he remained on the van.

Kendra Washington, Felicia Ann Phillips, Wanda Taylor and Pamela Lavette Robinson, all former Ascent employees were charged with felony manslaughter in Christopher’s death. 

In August of 2024, a civil case was filed alleging that one of Timberline Knolls employees raped a patient in May of this year. A law firm based in Indianapolis represents at least (7) patients who were abused at the hands of Acadia. At least three of these cases are pending in state courts in Indiana and substantiate the allegations made against Acadia.

Now, a former patient of Acadia from Texas has come forth. She alleges the same reprehensible conduct perpetrated by Acadia at other facilities was directed against her. And … I have the honor and privilege of co-counseling with that Indiana law firm to pursue her rights here in Texas.

For those who continue to deal with Acadia (as is your right), for those who continue to accept Acadia’s money, you may wish to review the definition of “dirty money.”

For that money came from patients who were wrongfully held against their will, from patients who were held for the sole purpose of increasing the profit margin of Acadia, from patients who did not receive adequate care or treatment, from patients who were abused and in some cases, sexually assaulted or raped. From patients who died at the hands of employees of Acadia.

And to those organizations which have accepted thousands of dollars from Acadia entities, organizations which have actual knowledge of Acadia’s wrongful conduct, organizations with so called ethics committees but who do nothing … NOTHING … to demand accountability or assess consequences … when you look into a mirror, that death mask reflected back is the visage of your acquiescence, your acceptance and your guilt.

APOLOGIES

In a recent article addressing the on-going issues at Acadia Healthcare, I referenced an event hosted by “Renewed, Eating Disorders Support” based in Tennessee. The co-host and presenter was Acadia Healthcare.

Even though I did not name the presenters, I did note the keynote talk was entitled, “Adventures in Treating Eating Disorders: Sharing Wisdom from a Cumulative 75 years of Practice.” 

I was recently contacted by one of the presenters of the keynote. She asked some very direct, poignant questions, questioned the reasons behind the inclusion in the article of that particular talk and why not others. She came across as a strong, intelligent, direct professional. She did what very few people in the community have had the courage to do.

She immediately gained my respect.

And after reviewing the article and the points raised by her, I concluded I was in the wrong.

So, to Ovidio Bermudez and Reba Sloan, the co-presenters of that keynote talk, I extend my deepest apology and hope that you can accept it.

I have personally known Ovidio for a few years. For that matter, who doesn’t know Ovidio? He is a giant in the community. I have had the privilege of sitting down with him on more than one occasion in social settings. We have discussed cigars, chess, our granddaughters, fishing and life in general. My respect for Ovidio is immense.

Reba, I have not met. But she did something that very few people in the community have had the courage to do.  She reached out to me directly and engaged with me in a professional, no-nonsense communication. She told me about her background and how hard she has been fighting for people suffering.  She explained why the article should not have included the talk. She was 100% correct.

When I investigated further, I discovered that Reba is the co-founder of the Eating Disorders Coalition of Tennessee/Renewed… the host of that event. And clarity became even greater. Reba was fighting for and defending that which she brought into the community… as any good founder would.

Ovidio and Reba are not connected with Acadia Healthcare. They were presenting at an event where Acadia was listed as the primary sponsor and presenter. My inclusion of the title of their presentation was obviously not thought through well enough.

I will certainly not make any excuses for this lapse in judgment.  I believe that proffered excuses only diminish the sincerity of an apology.

And so, apologies. No excuses. No attempts to explain or cast a better light. Simply …

My apology.  

$19.85 MILLION, KARMA AND THE HMS ACADIA

Karma is a Sanskrit word meaning “action.” Generally, we understand it to mean the consequences of one’s actions. The word “karma” is commonly used to indicate bad karma, and the word “merit” is often used to indicate good karma. The law of karma is best described as “cause and effect” because every action (or cause) has a corresponding consequence (or effect). If you plant good causes, you will reap good effects, and if you plant bad causes you will reap bad effects.

There have been many quotes about karma.  “Karma is a cruel mistress.” “For the keynote of the law of karma is equilibrium, and nature is always working to restore the equilibrium whenever through man’s acts it is disturbed.”

Karma comes at unexpected times and in unexpected ways.  Case in point, recent statements made by Christopher Hunter, the current CEO of Acadia Healthcare. In August, in response to a question about the recent damning Senate Committee report about Acadia, Mr. Hunter stated: “Yes. I would say we just haven’t seen any real impact from the Senate hearing in the report. … And so, it’s also not overly material from a financial standpoint to begin with.”

About six weeks after Mr. Hunter’s heartless statement, the Justice Department announced that Acadia agreed to pay $19.85 million to settle an investigation into Acadia.

The United States contended that between 2014 and 2017, Acadia knowingly submitted false claims for payment to Medicare, Medicaid and Tricare for inpatient behavioral health services that were not reasonable or medically necessary. In particular, the United States contended that Acadia admitted beneficiaries who were not eligible for inpatient treatment and failed to properly discharge beneficiaries when they no longer needed inpatient treatment and had improper and excessive lengths of stay.

The United States further alleged that Acadia knowingly failed to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm resulting from these staffing failures. In addition, Acadia allegedly failed to provide inpatient acute care in accord with federal and state regulations, including, but not limited to, by failing to provide active treatment, to develop and/or update individualized assessments and treatment plans, to provide adequate discharge planning and to provide required individual and group therapy.

Despite this punitive payment and financial hit, Mr. Hunter had this to say, “The allegation that Acadia systematically holds patients longer than medically necessary is false and goes directly against everything we do and stand for when it comes to patient care.”

It is curious that Mr. Hunter believes those claims to be false after Acadia agreed to pay almost $20 million to make those claims go away.

Of course, karma was just beginning for Mr. Hunter. Since Mr. Hunter focuses on the financial bottom line alone, we can assume he must be greatly concerned that Acadia’s stock hit a 52-week low of $42.56 on October 31, 2024. Acadia shares are down more than 44% since the beginning of the year. In fact, Acadia’s stock price has not been this low since November 2020.

Even still, karma was not through with Mr. Hunter. In September 2024, the Justice Department and Inspector General, through Robert DeConti, the inspector general’s chief counsel, stated that the $20 million settlement does not impede investigators from exploring allegations regarding more recent activities.

And so, on September 27, 2024, Acadia disclosed that it received a request for information from the U.S. Attorney’s Office for the Southern District of New York, a grand jury subpoena from the U.S. District Court for the Western District of Missouri, and that it expects similar requests from the U.S. Securities and Exchange Commission related to the Company’s patient admissions, as well as its length of stay and billing practices.

On October 18, 2024, the New York Times published an article titled “Veterans Dept. Investigating Acadia Healthcare for Insurance Fraud.” The article stated that the Veterans Affairs Department is investigating whether Acadia is defrauding government health insurance programs by holding patients longer than is medically necessary. The New York Times also stated that several former Acadia employees in Georgia and Missouri have also been interviewed by agents from the F.B.I. and the inspector general’s office of the Health and Human Services Department. 

In a separate press release, Acadia Healthcare said the company is cooperating fully with authorities in response to that on-going government investigation.

Naturally, Mr. Hunter a/k/a Captain Smith continued to steer the HMS Acadia toward the iceberg. In addressing these reports, he stated they are inconsistent with Acadia’s policies and do not reflect the medical complexities involved in behavioral healthcare. Dear Captain Smith… An organization is defined by its conduct, not by its CEO’s words.

Karma had one last present for Mr. Hunter. Acadia, its former CEO, its current and former Chief Financial Officers, and of course, Christopher Hunter were all named as defendants in a recent class action lawsuit filed in Tennessee. Acadia, Mr. Hunter and the other defendants were sued for allegedly violating securities laws following Acadia’s September 27, 2024 announcement about the federal grand jury subpoena.

Not coincidentally, Acadia’s stock price fell 16% alone on September 27, 2024, wiping out over $1 billion in market capitalization.

$1 billion in market capitalization.

It gets worse.  When Captain Smith was brought aboard the HMS Acadia on April Fool’s Day in 2022, the market capitalization of Acadia was $6.04 BILLION.  Market capitalization is regarded as the most accurate value of a publicly listed company.  What was Acadia’s market capitalization at the close of business Friday, November 2, 2024? $3.9 billion. So, after ramming into the side of the iceberg, Mr. Hunter/Captain Smith steered the HMS Acadia to a $2.14 BILLION dollar, 35% loss in the company/stock value.

As the HMS Acadia fills with water and starts to list, we are certainly justified in asking Mr. Hunter / Captain Smith, “Is it overly material now … that is, from a financial standpoint to begin with?”

Karma can be oh so cruel.

And as the HMS Titanic plunges toward the bottom of the icy ocean, shouldn’t families, patients and people suffering from any mental illness ask themselves, “why in the world would I subject myself to the HMS Acadia after it plowed into the iceberg and is sinking to the bottom of the North Atlantic?”

Get someone else to rearrange the deck chairs.

Marketers: What You Need to Know About Negligent Referral

Negligent referral is a cause of action in Texas (and in many states) which assesses liability against a person who refers another to the care and treatment of an incompetent third party and that third party causes harm to the person referred. Ordinarily, the referral itself is not enough. You must have know, or should have known, of incompetency or some other triggering factor which causes the negligence to manifest itself.

Knew or should have known of damning information.

In short, if you know, or in the exercise of reasonable care, you should have known of some damning information or evidence perpetrated by an entity, and you refer someone to that entity without disclosing that information, you could be liable should that person be harmed.

The shortest version? “It could be yo’ ass.”

Which brings us once again to Timberline Knolls.

Timberline Knolls and Acadia use marketers throughout the United States. In my time in the community, I have had the privilege of getting to know several of their marketers.  Most all are personable and very likeable.

But being upbeat, likeable and personable must always take a backseat to being responsible, transparent and placing the needs of the population you serve first and foremost.

And so, arises duty. The duty of honesty. The duty to disclose. The duty to investigate. The duty to place the needs of families suffering from eating disorders above your own wants or perceived needs.

As a marketer, families have the right to know, and (in my legal opinion) you have the duty to disclose:

  1. A patient of Timberline Knolls claims to have been raped in May and that when first reported, the staff at Timberline Knolls did nothing.
  • That patient has filed a lawsuit against Timberline Knolls.
  • A former employee of Timberline Knolls, Michael Jacksa was indicted for sexually abusing six (6) former patients at Timberline Knolls in 2019.
  • CBS News Chicago Investigators stated that a record of 911 calls for service to Timberline Knolls showed dozens of calls related to criminal sexual abuse or sexual assault since 2018.
  • The Lemont Police Department stated that it had received 546 calls for service from Timberline Knolls from 2023 – 2024.
  • Since 2020, [after Jacksa] the Lemont Police Department claims to have received reports from patients saying they had been sexually assaulted or abused, many of whom were juveniles.
  • The New York Times published a report indicating that Acadia Healthcare allegedly held patients longer than was necessary and often against their will at certain facilities. The report also claims Acadia trumped up patient symptoms in reports to payers to extract more reimbursement.
  •  The United States Senate Committee on Finance conducted a two-year study of four major companies, including Acadia, providing mental health services to children and adolescents and found numerous alarming issues. 

These issues are material and relevant to a family vetting a place of healing with whom they entrust their beloved family member.

As a marketer, you can probably get away with not disclosing that the CEO of Acadia looks upon a family’s loved one as part of a “difficult population,” and that Acadia intends to simply let “the people that deal with this population” handle the many troubling issues. Notwithstanding that those are the people contributing to the very problems.

But as of now, as marketers, and whether you market to families, primary care physicians, or any third parties, you are on notice of the many problems at Timberline Knolls.  You cannot claim nor feign ignorance.

You have a strong, undelegable duty.

If you choose to continue to conduct business as usual and one of the souls you are responsible for referring is harmed by substandard care or by predators, you could be liable.

Govern yourself accordingly.

$$$

“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:

Click to access survivor_testimony_submitted_into_the_record_by_chairman_wyden_during_hearing.pdf

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.

Timberline Knolls

Dante’s seminal work, “The Divine Comedy,” is regarded as one of greatest writings in Western Literature. It is divided into three parts: Inferno, Purgatorio and Paradiso.

This literary masterpiece discusses “the state of the soul after death and presents an image of divine justice meted out as due punishment or reward” as it describes Dante’s travels through Hell, Purgatory and Heaven. There are nine circles of the Inferno, or Hell, followed by Lucifer contained at its bottom.

We now know there is a tenth level not addressed by Dante.  This level is Timberline Knolls in Lemont, Illinois. 

On August 21, 2018, Michael Jacksa, then a counselor at Timberline Knolls was arrested and charged with assaulting a 29 year old patient at Timberline Knolls during two counseling sessions between May and June of 2018. 

Jacksa was accused by patients of digitally penetrating their vaginas and buttocks, putting his hands beneath their clothing, fondling their breasts and forcing them to give him oral sex. During his first bond hearing on Aug. 21, Jacksa reportedly admitted to police that he “probably went too far.”

This “probably went too far” conduct manifested itself by him being indicted for his reprehensible conduct directed toward a second victim. According to those charges, between Dec. 1, 2017 and Jan. 10, 2018, Jacksa was treating an out-of-state woman for eating disorders, anxiety and past sexual abuse. The patient alleges that Jacksa sexually assaulted her during four therapy sessions at Timberline Knolls. The prosecutor said the second woman came forward after seeing media reports.

According to the prosecutor, at least six other former patients of Jacksa’s from across the country have contacted the Lemont Police Department stating that Jacksa allegedly engaged in “inappropriate sexual behavior” during their respective therapy sessions.

But that is not the end of Timberline Knolls and Acadia’s problems.  Not nearly.

On September 1, 2024, a New York Times report published a scathing article about Acadia Healthcare, the publicly traded company which owns Timberline Knolls. The article and its follow up can be found here:

In short, the New York Times report indicated that Acadia Healthcare allegedly held patients longer than was necessary and often against their will at certain facilities. The report also claims Acadia trumped up patient symptoms in reports to payers to extract more reimbursement. The Report stated: “Acadia has exaggerated patients’ symptoms. It has tweaked medication dosages, then claimed patients needed to stay longer because of the adjustment. And it has argued that patients are not well enough to leave because they did not finish a meal,” the New York Times alleged. “Unless the patients or their families hire lawyers, Acadia often holds them until their insurance runs out.” 

This Report allegedly included at least 12 of the 19 states where Acadia operates psychiatric hospitals. Dozens of patients, employees and police officers notified authorities that the company was detaining people in ways that broke the law, the report stated, citing records. It is unknown whether Timberline Knolls is part of that conduct.

Acadia stated the assertions are inaccurate.

But that is not the end of Timberline Knolls and Acadia’s problems.  Not nearly.

The United States Committee on Finance conducted a two-year study of four major companies providing mental health services to children and adolescents.  One of the four companies? Acadia Healthcare.

The findings of that study were released on June 12, 2024.  The study can be found here:

Click to access sfc_report_warehouses_of_neglect.pdf

The testimony before the Committee and the Exhibits supporting the study can be found here:

https://www.finance.senate.gov/hearings/youth-residential-treatment-facilities-examining-failures-and-evaluating-solutions

The study’s findings can be summarized 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. 
  • Children inside RTFs often do not get the treatment they need for mental and behavioral health needs, despite RTFs being reimbursed with federal dollars to provide intensive services. 
  • Horrific instances of sexual abuse persist unremediated inside RTFs. 
  • The use of restraint and seclusion in RTFs allows for unchecked abuse. RTF staff have too often ignored federal restraint and seclusion regulations, resulting in daily use of restraint and seclusion in some instances.  
  • 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. 
  • RTFs are often non-homelike environments, exposing children to unsafe and unsanitary conditions. 
  • RTFs often fail to effectively maintain connections between children and their communities and to plan for childrens’ discharge to the community for ongoing care. 
  • RTFs often employ carceral technology to monitor children, creating environments that feel more like detention facilities than therapeutic settings. 
  • 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.
  • Exploiting corporate structures can enable RTF operators to evade oversight. 

Surely, this scathing report must have had an immediate and severe impact on Acadia Healthcare with far fewer referrals and a commitment to investigate and improve. Uh … no.

In an August 5, 2024 call with investors, Chris Hunter, CEO of Acadia Healthcare, said the behavioral health provider had not seen any negative effects from the report. 

Hunter stated: “Residential treatment centers comprise around 11% of Acadia’s revenue… 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.”

That a boy Chris! Don’t address the damning evidence in the Committee’s Report but do insinuate blame on your patient population.  Profits, profits uber alles! Well played, sirrah. 

But that is not the end of Timberline Knolls and Acadia’s problems.  Not nearly.

In August 2024, a lawsuit was filed against Timberline alleging staff member Erick Hampton sexually assaulted a 24-year-old patient, Jane Doe, three times in May 2024.

Doe, who has bipolar and borderline personality disorder, was seeking treatment at the facility for suicidal thoughts. Despite reporting the assaults to a staff member via her roommate, no prompt action was taken, allowing Jane Doe to be raped a third time.

The lawsuit also alleges that Doe was falsely accused of having a secret affair with a staff member and was forced to leave the facility, after less than two weeks, out of fear. The lawsuit claims the assaults worsened her mental health condition, yet Hampton faces no criminal charges.

Worsened her mental health conditions. Rape will certainly do that.

So, in the past four months, Acadia, the parent company of Timberline Knolls:

  1. Was the subject of a scathing Senate Finance Committee Report on systemic abuse of children and adolescents;
  2. Was the subject of a scathing New York Times Report alleging system abuse of children and adolescents;
  3. Was the subject of a scathing lawsuit alleging one of Timberline Knolls employees raped a patient three times while under their so-called care.

Timberline Knolls should have still been reeling from the Jacksa incidents and implemented wholesale changes and improvements to prevent instances of abuse from happening again. Instead?

It is business as usual. According to Acadia’s CEO, its bottom line has not been impacted and families are still referring their loved ones to Timberline Knolls. Acadia marketers are drumming up business with no thought about the possible harm nor consequences.

So, what can be done? For one, complaints with all of this information can be sent to the Attorney General of Tennessee (where Acadia is based); the Attorney General of Illinois (where Timberline Knolls is based); to the Joint Commission; to the REDC and published widely on social media.  Attempted collaboration can be undertaken with the law firms representing the latest victims at Timberline Knolls. Those things can certainly be done. But the question remains …

What are you prepared to do?