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43rd Annual J.P. Morgan Healthcare Conference January 2025 West Pines Behavioral Health (Intermountain Health Joint Venture) Westminster, CO
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2 Safe Harbor Some of the statements made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases, you can identify forward-looking statements by terminology such as “may,” “might”, “will”, “should,” “could” or the negative thereof. Generally, the words “anticipate”, “believe”, “continues”, “expect”, “intend”, “estimate”, “project”, “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained in this are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. Additional risks and uncertainties are described more fully in “Risk Factors” in our periodic reports and other filings with the Securities and Exchange Commission. These forward- looking statements are made only as of the date of this presentation. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments.
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3 Acadia at a glance: the largest BH-focused provider nationally $3.1B in Revenue for TTM 9/30/2024 #1 Pure-play Behavioral Health (BH) provider in the US >80k Patients treated daily across our 4 service lines Positioned to serve the large unmet needs in the country: commitment to clinical excellence, integration across the continuum of care and strong financial performance Strong foundation for growth 260 Facilities across the nation
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4 The Behavioral Health (“BH”) industry has a large unmet need and low industry maturity 1. SAMHSA results from the 2023 National Survey on Drug Use and Health 2. Treatment Advocacy Center, January 2024 3. CDC’s National Center for Health Statistics 4. U.S. Department of Health and Human Services Low industry maturityLarge, recognized unmet need >75k Additional beds required in US to meet optimal levels2 ~33% Increase in annual deaths by suicide between 2009 and 20233 ~30M Americans with mental illness receive no mental health treatment1 Technology Integration Fragmentation Most operators across Acute, substance use disorder (SUD) and opioid treatment programs (OTP) services are small-scale (e.g., >50% of the IP psychiatric beds are in small facilities, of the ~1.9k OTPs in the US, the top 3 providers combined operate ~20%) Few providers offering whole-person care, integrating treatments for mental health and physical co-morbidities and meaningfully addressing social determinants of health Historic underinvestment in BH technology and services (e.g., BH exclusion from $25B+ HITECH Act of 20094 which incentivized and expanded the adoption of health information technology)
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5 America’s behavioral health crisis has intensified 1. Due to data lag, latest data available is full year 2023 (as of January 2025) 2. Based on CDC predicted opioid overdose deaths (as of January 2025) Source: SAMHSA National Survey on Drug Use and Health, Centers for Disease Control and Prevention Serious Mental Illness (SMI) Any Mental Illness (AMI) Opioid overdose deaths2 Substance Use Disorder (SUD) 52.9M 58.7M 2020 20231 14.2M 14.6M 2020 20231 40.3M 48.5M 2020 20231 70.0k 82.0k 2020 20231 Behavioral health prevalence Worsen Same Improvement
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6 Strong diversification across service lines, payors, and geography Total Revenue: $3.1B Revenue by geography TTM 9/30/2024 Revenue by payor TTM 9/30/2024 Revenue by service line TTM 9/30/2024 53% 19% 17% 11% Acute Specialty CTC RTC 57% 26% 14% Medicaid Commercial Medicare 2% Self 1% Other 29% 14% 8% 7% 6% 6% 5%5%4% PA CA TN MA AZ MI ARMO 4% TX 4% FL 4% LA 3%IN Other
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7 Our Strategy: Become the indispensable behavioral health provider for high-acuity and complex needs patient populations Fuel facility growth through JV partnerships , de novo builds and launching programmatic M&A Accelerate expansion across the care continuum, from highly complex inpatient care to outpatient care Strengthen capabilities and selectively leverage technology to increase access, improve care quality and strengthen clinical outcomes Our core strategic priorities to drive quality and access
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8 • Incident rates • Patient satisfaction • Staff retention • Employee engagement • Survey outcomes • National quality measures (e.g., restraint rates) • Clinical outcomes Predictive data, analytics, and dashboards Impact: Incident mitigation, patient outcomes, survey outcomes Patient monitoring devices at all Acute facilities Impact: Care quality, patient safety, incident mitigation Example investments and impact Building on commitments made in 2022, investments in technology are bringing numerous benefits in quality Example KPIs to track impact Patient quality and safety Employee safety and support Quality data and analytics Safety devices that alert staff for more support Impact: Staff retention, employee satisfaction, safety, incident mitigation Ongoing electronic medical record implementations Impact: Employee satisfaction, workflow efficiencies, care quality, demonstration of outcomes EMR
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9 We are seeing several external proof points of our distinguished service quality and outcomes Acadia’s patient-centric care ecosystem Acadia quality of care Specialty + PHP/IOP CTC +IOP Acute/RTC + PHP/IOP 99%+ quality score across each of CARF’s 13 measures (opioid clinics) ~2X better performance vs US national benchmarks for use of restraints and seclusion in inpatient psychiatric facility (Acute) Top 5 most trustworthy health systems in the US Technology leadership, specifically in EMR and patient monitoring, recognized by the Joint Commission
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10 Acadia’s CTCs deliver differentiated services and quality for opioid use disorder patients Comprehensive services 99%+ quality score across each of CARF’s 13 measures Investments in core technology infrastructure (e.g., kiosks) Specialized clinical programs (e.g., for incarcerated patients, for pregnant women) Differentiated access and quality Mobile vans Access ~5 minutes Average wait time per clinic visit ~half Of Acadia CTC patients access counseling virtually Personalized treatment plan Medication management Medication dispensing Individual therapy Group therapy Peer support Vocational training Social support services Quality
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11 Acadia continues to be the preferred partner for leading health systems across the country Acadia delivers significant value to health systems Landscape of our 21 existing partnerships • Behavioral health expertise with long experience of operating acute care BH hospitals • Proven track record of partnering with medical health systems • Help health systems meet the unmet needs in the population (e.g., addressing special needs of children and adolescents) and free capacity for medical patients JVs are equity partnerships with medical health systems that have a shared purpose of improving the mental and physical outcomes of high-acuity patients Danville Northeast
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12 Acadia is expanding access to critical behavioral health services # new Acadia beds1 (rounded) 1. Includes bed expansions, joint ventures, and wholly-owned de novos 2. Construction completed on ~1,300 beds during FY2024, with ~800 of those beds licensed as of 12/31/24. Remaining beds expected to receive licensure in Q1 2025. 450 420 520 460 380 570 590 2017 2018 2019 2020 2021 2022 2023 2024 ~1,300 constructed2 ~800
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13 2024 has been a particularly big year, with a record number of facilities constructed… Example constructed facilities (not comprehensive) West Pines Behavioral Health (Intermountain JV) – Westminster, CO – 144 beds Coachella Valley Behavioral Health – Indio, CA – 80 bedsAgave Ridge Behavioral Health – Mesa, AZ – 100 beds Henry Ford Health Joint Venture – West Bloomfield, MI – 192 beds
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14 …and many new facilities under construction Example facilities under construction (not comprehensive) ECU Joint Venture Hospital – Greenville, NC – 144 beds Geisinger Behavioral Health Center – Danville, PA (Geisinger Headquarters) – 96 beds Tufts Medicine Joint Venture – Malden, MA – 144 beds
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15 Interior photos of recent Acadia builds
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16 New facilities increase care access with strong return on capital 1. Year 1 includes pre-opening costs, defined as the 3 months leading up to first month of revenue Occupancy Facility EBITDA Target economics of a new facility (representative 100-150 bed acute care facility) Year 1 (Startup Losses)1 Maturity (Year 3-5) $4-5M $8-15M ~33% Year 11 ~80-85% Maturity (Year 3-5) Representative new facility economic targets • $500-550k average cost per bed for new facility builds • 18-24 months typical construction time • Breakeven targeted after ~12 months • Maturity occupancy of ~80- 85% within 3-5 years • ~30% facility level margin upon maturity • Targeted margin and returns exclude potential future bed expansions
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17 New acute facility occupancy (historical)1,2 Newly opened facilities follow a positive occupancy trend during ramp period 31% 61% 85% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Year 1 Year 2 76% Year 3 Year 4 Average (n=19)2 1. Based on number of initial beds (i.e., average daily census divided by number of licensed beds). For facilities with average daily census greater than initial capacity due to bed expansions within four years of opening, occupancy % indicated as 100% on the chart 2. Chart shows facilities with at least 4 full years of data. Averages includes facilities with at least 1 year of data.
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18 Many Acadia facilities are and will be in the “ramping” phase Cohort (year opening) Example new facilities or new facility JV partners 2020 2021 2022 2023 2024 Future cohorts (Children’s) (Adult)
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19 Acadia has a track record of creating patient access at lower cost from bed expansions 1. Cohort includes 40 large (>19 bed) bed expansion projects, representing ~1600 new beds 2. Based on 13 new facilities built between 2013-2020 New facilities are critical for creating attractive for bed expansion opportunities: 85% of facilities constructed through 2020 have undergone bed expansions 2 Actual performance of facilities with large bed expansions (from 2015-2021)1 Resulting facility-level financialsCapacity expansion Prior to expansion (Year -1) Post expansion (Year 3) +33% EBITDA EBITDA margin Net revenue +33% Prior to expansion (Year -1) Post expansion (Year 3) +330 bps +51%