The Brentwood, Tennessee-based health care system Lifepoint Health has acquired Cornerstone Behavioral Health El Dorado.
The terms of the deal to acquire the Tucson, Arizona-based facility were not disclosed. Lifepoint Health has yet to respond to additional questions.
Cornerstone Behavioral Health El Dorado encompasses 54 beds and employs about 100 people. Lifepoint Health will add 50 beds in the coming months, according to the release.
The deal adds to Lifepoint Health growing behavioral health business, monikered Lifepoint Behavioral Health. It operates over 35 behavioral health units in partner hospitals and three inpatient behavioral health hospitals.
“Together, we have opportunities not only to further strengthen the care that Cornerstone Behavioral Health El Dorado provides its communities but also to expand behavioral healthcare access to these vital services across our nation,” Lifepoint Behavioral Health President Russ Bailey said in a news release.
In a related deal, Louisville-based ScionHealth acquired Cornerstone Behavioral Health El Dorado’s parent organization — the post-acute care providers Cornerstone Healthcare Group. The group, headquartered in Dallas, Texas, operates 15 specialty hospitals and eight senior living locations. It also employs 3,000 people.
As of 2020, the U.S. had 645 specialty behavioral health hospitals — about 11% of all hospitals, according to the American Hospital Association. The AHA reported about 47% of behavioral health hospitals are “investor-owned” and that 60 behavioral health hospitals were built between 2016 and 2020.
The U.S. faces what many see as a shortage of psychiatric beds amid the broader demand for behavioral health services. Many states seek workarounds for archaic federal rules that limit the impact of programs like Medicaid in increasing access to care.
The largest operators in the space are seeking to pull additional partners into developing behavioral health facilities — especially hospitals. Franklin, Tennessee-based Acadia Healthcare Co. (Nasdaq: ACHC) has signaled its preference for joint ventures regarding de novo expansion.
Lifepoint Health’s portfolio is heavily focused on acute and post-acute care. It operates 62 community hospital campuses, 27 rehabilitation facilities and over 170 other care sites across 28 states.
Behavioral health facilities can be successful as standalone operations. However, Universal Health Service (NYSE: UHS) is pushing its acute care hospital and behavioral health facility business closer together to find more synergies between the two. UHS executives say this would be a first for the company.
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