Acadia Healthcare Company Inc: ACHC Core Trends Solid: Florida DPP Offsets Unfavorable PLGL Dynamic Related to Settlements Tied to Prior Years

Research evidence excerpt

Acadia Healthcare Company Inc: ACHC Core Trends Solid: Florida DPP Offsets Unfavorable PLGL Dynamic Related to Settlements Tied to Prior Years

0.37 0.37

Q2E 0.36 0.35

the bottom end of the range and leaving the top end unchanged. The cash flow

Q3E 0.48 0.48

guidance update reflects positive earnings trends as well as improvement in days sales

Q4E 0.26 0.30

outstanding. CAPEX guidance was brought down by $15 mln at the midpoint and

12/26E 1.46 1.51

operating cash flow guidance was brought up by $70 mln at the midpoint. The updated 12/27E 1.75 1.76

guidance does not assume approval of either the Florida DPP (~$20 mln annually) or the 12/28E 1.93 1.99

Ohio DPP (~$10 mln annually) for 2026.

AJ Rice

Same Facility Results: Strong Volumes/Pricing Ex-Headwinds Analyst

aj.rice@ubs.com

Same facility revenue was flat Y/Y, comprised of a 0.8% increase in patient days and a +1-212-713 4299

0.8% decrease in revenue per patient day. After normalizing for the impact of prior

Joseph Overmanperiod supplemental payments (Florida and Tennessee), bad debts, and mix shift,

Associate Analyst

underlying rate growth was closer to 2% in the quarter. Patient days were impacted by a

joseph.overman@ubs.com

290 basis point headwind from changes to NY out-of-state Medicaid referrals, which are +1-212-882 0086

negatively impacting volumes at ACHC's facilities in neighboring Pennsylvania. This was

Michael Weia step up, as expected, from 180 bps in 1Q26 since a number of NY patients were still

receiving treatment during the first quarter. Those NY patients have now all left the michael.wei@ubs.com

facility as of the second quarter, so 2Q likely marks the peak of the Y/Y headwind to +1-212-713 2565

volumes. Adjusting for the NY volume headwind and 220 basis points of benefit due to