American Addiction Centers

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American Addiction Centers Inc.
Public
Traded asNYSEAAC[1]
IndustryHealthcare
Founded2007
HeadquartersBrentwood, Tennessee, U.S.
Area served
United States
Key people
Websiteamericanaddictioncenters.org

American Addiction Centers is a publicly traded healthcare facilities and services company providing treatment for substance abuse and behavioral addictions. Formerly known as Forterus Inc., it is headquartered in Brentwood, Tennessee, and operates as a subsidiary of AAC Holdings.[5][6]

The company delivers addiction treatment services in residential and outpatient facilities, as well as providing drug testing and diagnostic laboratory services.[6][7][8]

History[edit]

American Addiction Centers was founded in 2007 by Michael Cartwright (currently CEO) as Forterus Inc.[5][6] In October 2014, the company went from privately held to public, becoming the first publicly traded addiction treatment provider in the U.S. As of 2019, it remains the only public company in the U.S. addiction treatment industry.[9][2]

In December 2014, American Addiction Centers made its first acquisition as a public company, taking over Recovery First Inc., a Florida-based substance abuse and rehab services company.[2] By 2015, American Addiction Centers ran 8 facilities in 6 states after acquiring several sites in California, New Jersey, Rhode Island and Mississippi.[9][10] Among the company’s acquisitions in 2015 were also two digital marketing firms focused on publishing online content on substance abuse – Referral Solutions Group and Taj Media.[11][12]

In 2015, the company launched a Behavioral Health Academic Scholarship Program, providing scholarship funds to college students pursuing careers in addiction-related fields.[13][third-party source needed]

By 2018, American Addiction Centers was operating 12 residential treatment centers and 18 outpatient facilities, and reported a revenue of almost $296 million.[7][14]

In 2019, AAC received three warnings from the New York Stock Exchange, risking being delisted. The third warning was issued after AAC stock traded below $1 for at least 30 trading days.[1]

Controversy[edit]

In 2018, a California jury issued a verdict against AAC, awarding $7 million to the family of a patient who committed suicide in a AAC facility and died 20 hours after his arrival.[15]

According to an investigation by Mother Jones, centers managed by AAC often leave patients unattended, which led to some patient deaths and lawsuits. AAC denies it and claims that their death rate is the lowest in the industry.[16]

References[edit]

  1. ^ a b Blois, Matt (10 July 2019). "AAC receives third warning from NASDAQ". Nashville Post. Retrieved 4 October 2019.
  2. ^ a b c "AAC Holdings buys Florida substance abuse provider". Nashville Post. Retrieved 2019-09-13.
  3. ^ Konish, Lorie (2018-12-10). "This is what your addiction could really be costing you". CNBC. Retrieved 2019-09-13.
  4. ^ Jones, Charisse (April 8, 2019). "8 signs your co-workers are struggling with addiction". USA Today. Retrieved 2019-09-13.
  5. ^ a b "Bloomberg - American Addiction Centers Inc". Bloomberg. Retrieved 2019-09-13.
  6. ^ a b c "American Addiction Centers Company Profile: Stock Performance & Earnings | PitchBook". pitchbook.com. Retrieved 2019-09-13.
  7. ^ a b Silver, Jeff (2018-03-15). "Kirk Manz's Mission to End Drug Abuse at American Addiction Centers". American Healthcare Leader. Retrieved 2019-09-13.
  8. ^ Jones, Charisse; O'Donnell, Jayne (March 31, 2019). "As nation struggles with opioid crisis, workers bring addiction to the job". USA Today. Retrieved 2019-09-13.
  9. ^ a b "American Addiction Centers Goes Public". Mitchell MCN. 2015-02-05. Retrieved 2019-09-13.
  10. ^ "AAC buys in Mississippi". Nashville Post. Retrieved 2019-09-13.
  11. ^ Kubis, Emily. "AAC acquires online publisher, marketing company for $60M". Nashville Post. Retrieved 2019-09-13.
  12. ^ Miller, Julie (July 6, 2015). "American Addiction Centers buys two digital marketing firms | Psychiatry & Behavioral Health Learning Network". Psych Congress. Retrieved 2019-09-13.
  13. ^ Shulman, Robyn (2016-04-03). "Scholarship Program $10,000-American Addiction Centers Announces 2016 Behavioral Health Academic". Cite journal requires |journal= (help)
  14. ^ Elflein, John (Jul 10, 2019). "American Addiction Centers' annual revenue from 2011 to 2018 (in 1,000 U.S. dollars)". Statista. Retrieved 2019-09-13.
  15. ^ Walser, Adam (6 February 2018). "Jury holds drug rehab responsible for suicide". WFTS. Retrieved 4 October 2019.
  16. ^ Lurie, Julia (22 April 2019). "America's only publicly traded addiction treatment chain makes millions off patients. What could go wrong?". Mother Jones. Retrieved 4 October 2019.

External links[edit]