Corporatization of Residential Treatment

How nonprofits scaled like businesses, for-profit chains took over, and private equity turned residential treatment into an asset class.

17 min read Updated

The New York Stock Exchange facade on Broad Street

Billie Grace Ward, CC0, via Wikimedia Commons

Contents
  1. Nonprofits Scale Like Private Enterprises
  2. For-profit models gain popularity
  3. Private equity drives rapid expansion
  4. Sources

Nonprofits Scale Like Private Enterprises #

  • 1912 – Devereux Foundation founded
    • Helena Devereux opens the first school for children with developmental challenges in Pennsylvania.
    • Over the 20th century, it grew into one of the largest behavioral healthcare nonprofits in the U.S., operating residential programs, schools, and psychiatric facilities across multiple states.
  • 1917 – Father Flanagan’s Boys’ Home (later Boys Town) established
    • Founded in Nebraska as a Catholic orphanage, Boys Town evolved into a sprawling nonprofit operating RTCs and behavioral programs for youth.
    • By the 1990s, it served thousands and marketed its family-style care model nationally.
  • 1940 – The first Brown Schools facility is established by Mr. and Mrs. Bert P. Brown, starting as an early for-profit “mom-and-pop operation.”
    • The Brown Schools is considered a pioneer in the privatization of treatment for adjudicated youth and the use of therapeutic wilderness programs, and is seen as responsible for the creation of the modern Troubled Teen Industry
  • 1960 – The Hillview Unit of The Brown Schools at San Marcos is dedicated.
  • 1960 – Teen Challenge founded by David Wilkerson in New York City.
    • Teen Challenge began as a Christian drug rehabilitation program. It rapidly expanded into a global network of 1,000+ centers, many for teens, often using forced labor, religious indoctrination, and behavior modification.
    • Operates under various 501(c)(3) entities.
  • 1967 – Phoenix House founded in New York by Dr. Mitchell Rosenthal
    • Phoenix House became one of the largest nonprofit drug treatment networks in the U.S.
    • Early ties to Synanon.
    • Operates adolescent programs and therapeutic communities across 10+ states.
  • 1968 – Eckerd Youth Alternatives founded by Jack and Ruth Eckerd.
    • 1968 – Opened their first wilderness program, Camp E-How-Kee for Boys in Brooksville, FL.
    • 1969 – Opened Camp E-Nini-Hassee for Girls in Floral City, Florida
  • 1971 – Provo Canyon School opens its first facility for boys.
    • Founded by Robert Crist and Jack Williams.
    • A few years later, two teens, sent to Provo Canyon School by their home states’ juvenile justice systems (one from Alaska, one from Nevada), run away and file a lawsuit against the original owners. They challenge the school’s education, treatment, and confinement methods.
  • April 22, 1976 – Straight, Inc. is incorporated in Saint Petersburg, Florida.
    • September 1, 1976 – Straight, Inc. begins operating its first treatment camp in Saint Petersburg, Florida.
  • 1977 – Robert Lichfield gets his start in the TTI as a dorm parent at Provo Canyon School
  • 1977 – Eckerd Family Youth Services begins national expansion with Camp E-Toh-Kalu in Hendersonville, NC at the request of Governor Jim Hunt
    • 1978 – Opened Camp E-Ku-Sumee in Candor, NC
    • 1979 – Opened Camp E-Mun-Talee in Lowgap, NC
    • 1979 – Opened Camp E-Ma-Henwu in Newport, NC

For-profit models gain popularity #

  • 1979 – Charter Behavioral Health Systems established: One of the earliest behavioral health chains.
    • 1986 – Charter Behavioral Health Systems purchases the original Provo campus of Provo Canyon School. The company would own the school for the next 14 years.
    • By 1999, Charter operated 91 hospitals and treated 120,000 inpatients annually—including 35,000 children and adolescents
    • CBS News’ 1999 60 Minutes II exposé “Unsafe Haven” investigated the death of 16-year-old Tristan Sovern at a Charter hospital in Greensboro, NC
      • Sovern died of asphyxiation while being illegally restrained
      • CBS found evidence of unqualified staff, falsified records, dangerous restraint practices, and insurance fraud
      • Undercover reporter Terrance Johnson, a licensed social worker, filmed inside a Charter facility in Charlotte using a hidden camera embedded in his eyeglasses
      • CBS reported at least 35 people died in restraints at psychiatric facilities in the prior 2.5 years; Charter accounted for multiple cases
      • The Inspector General of HHS launched a nationwide investigation into Charter
      • On April 20, 1999, Charter filed for a temporary restraining order against CBS in an attempt to block the broadcast, arguing patient confidentiality violations
      • On April 26, 1999, federal Judge Graham Mullen denied the prior restraint request just six hours before airtime
      • The segment aired nationwide, exposing widespread systemic issues in private psychiatric facilities
  • November 1980 – Straight, Inc. opens a facility in Sarasota, Florida.
  • 1980 – After a lengthy trial, a jury favors Provo Canyon School in the lawsuit. However, a federal judge issues a permanent injunction banning specific practices:
    • Using polygraph tests on boys.
    • Opening and reading boys’ mail.
    • Using isolation for any reason other than to contain a violent boy.
    • Using physical force to restrain a boy unless he is an immediate danger to himself or others.
  • 1981–1982 – Straight, Inc. expands further with facilities in Atlanta (Marietta), Georgia, Cincinnati (Milford), Ohio, and Washington, DC (Springfield, Virginia).
  • 1982 – Former executives of Charter Medical Corp. purchased the Brown Schools, changing the company’s name to “Healthcare International” and expanding it to include psychiatric hospitals.
  • 1982 – A group of staff and residents from CEDU’s Running Springs, California, campus left to open Rocky Mountain Academy (RMA) in Bonners Ferry, Idaho
  • January 30, 1983 – Ground is broken for the construction of the National Headquarters for Straight, Inc. in Saint Petersburg, Florida.
  • July 19, 1983 – Straight – Sarasota closes after a report of multiple violent criminal acts by counselors and lawsuits from former clients.
  • January 1984 – Straight, Inc. opens a facility in Orlando, Florida.
  • September 26, 1985 – After losing the Fred Collins lawsuit, Straight, Inc. undergoes a significant restructuring:
    • The original Straight, Inc. changed its mission to public education on adolescent substance abuse and was renamed Straight Foundation, Inc. Its bylaws were amended to allow funds for legal defense and judgments against board members.
    • A brand new organization was incorporated on the same day, also named Straight, Inc., with the mission of treating adolescent drug addiction. This new entity leases property from and receives grants from Straight Foundation, Inc.
  • 1985 – The first Three Springs program, Paint Rock Valley Boys campus, opened in Trenton, AL
  • February 23, 1986 – Straight, Inc. opens a facility in Detroit (Plymouth), Michigan
  • 1987 – Straight – Cincinnati voluntarily closes on the day its trial for criminal child abuse was set to begin. Clients are transferred to Atlanta and Detroit.
  • 1988 – Brandon Hadden, 18, dies at a Brown Schools facility after being restrained.
    • His mother, Judy Chandler, sues. The case is defended by Charles Moody, then an attorney for the Brown Schools.
    • No criminal charges filed. Brown Schools settles out of court after 7 years.
  • 1990 – California closes Straight – Southern California due to child abuse allegations. Clients are transferred to Straight – Dallas. The failure of this facility likely prevents the formation of Straight – Seattle.
  • 1990 – Kids Helping Kids of Hebron, KY (a Straight-like program) moves into the old Straight – Milford facility and changes its name to Kids Helping Kids of Cincinnati.
  • 1990–1996 – Seventeen corporations were created around Cross Creek Manor and Paradise Cove, which would later become WWASP-affiliated programs
Corporate Layering
Corporate layering is a deceptive business practice where companies create a complex web of interconnected corporations, often with overlapping officers, registered agents, and general partners, to obscure ownership and operations. This strategy makes it difficult for investigators to determine who truly owns or controls a business and its purpose.
How Corporate Layering Works and its Purpose:

Obscuring Ownership and Liability: Entities like the World Wide Association of Specialty Programs and Schools (WWASP) and private equity firms use corporate layering to limit legal liability. If a company within a portfolio experiences financial distress or faces legal action due to abuse or neglect, the fund investors are typically only liable for their investment in that specific company, and the company itself is liable for its debts, rather than the fund investors who placed the debt onto the company.

Constant Reorganization: Companies involved in corporate layering may frequently reorganize, making it a “game” for licensing officials to stay on top of their activities. They may also intentionally change corporate names by slightly altering the spelling (e.g., “You” to “Yu” corporation) and dissolving old entities to prevent state corporate record databases from attaching a history to the new corporation.

Misleading Information: This practice can involve using incorrect or non-existent addresses for corporate filings, or listing business purposes that do not match the actual operations (e.g., a construction company doing business as a school, or a referral agency listing its purpose as “services to businesses and dwellings”). Individuals associated with these corporations may also use multiple aliases or variations of their names, further complicating investigations.

Financial Shielding: Corporate layering can be used to filter money through various entities, including offshore bank accounts, potentially to avoid income tax and protect assets from legal liability.
Examples and Evidence of Corporate Layering:

WWASP: ISAC Corporation’s investigation found that from 1996 to 2003, 213 corporations were formed that were affiliated with J. Ralph Atkin or WWASP, compared to only 16 corporations involving J. Ralph Atkin in the preceding 30 years (1961-1991). Of 254 such corporations, 75 used non-existent, incorrect, or “unknown” addresses. It was also found that 33 corporations listed other corporations as “members” before those member corporations were even formed.

Cross Creek Manor: Formed in 1990, it became a focal point for the creation of 17 corporations between 1990 and 1996.

Tranquility Bay/Caribbean Centre for Change: Incorporated in January 1996, it was quickly surrounded by hosts of other corporations. For instance, Parkside Phase IV and Phase II were created in the same month as Tranquility Bay, with members like H&Y, Hacker Holdings, Jewkes, SGI Holdings, and Potter Enterprises, many of which shared the same corporate address (1240 E. 100 S. Suite 10) or were owned by other interconnected entities.

Spring Ridge Academy: Incorporated in July 1996, it saw seven other corporations created around its incorporation date, with many of these entities also owned in part by other corporations or listing incorrect addresses.

“Teen Help”: This entity alone was renamed multiple times to “Teens in Crisis 2001,” “Teen Help LLC 1997,” “Teen Assist,” and “Teen Watch USA”.

Browning Academy: Parents were instructed to use its name and school number for KeyBank Achiever Loans, even if the child was enrolled elsewhere. Browning Academy, however, does not physically exist; its corporate documents list non-existent addresses or the office of J. Ralph Atkin.

Private Equity Firms: Large for-profit companies like Sequel (owned by Altamont Capital Partners) can avoid accountability by closing down facilities when investigations interfere with operations and then buy out and open additional facilities elsewhere. For example, after being “plagued by media and legal attention,” Sequel closed half of its Residential Treatment Facilities (RTFs) in 2021 and sold 13 facilities to Vivant, a newly incorporated company also founded by Sequel’s co-founder Jay Ripley. This move to private ownership, confirmed to be Ripley’s own capital, allegedly allowed providers to escape liability. Vivant retained many members of Sequel’s leadership, raising questions about whether it is truly a distinct entity.

AdvoServ/Bellwether Behavioral Health: This provider, owned by GI Partners and later Wellspring Capital Management, changed its name to Bellwether Behavioral Health in 2017. It ceased operations in 2019 after investigations found abuse and neglect.
Impact on Oversight:
Corporate layering and opaque ownership structures significantly hinder oversight and accountability.

Fragmented Regulation: The complex web of county, state, and federal agencies, coupled with varying state laws and standards for different services (foster care, I/DD, juvenile detention), makes it increasingly difficult to ensure youth safety and provider accountability. For-profit chains can exploit this fragmented regulatory scheme, which a private equity consulting firm noted as a “favorable regulatory environment” for continued investment.

Under-resourced Agencies: Government agencies often oversee only limited aspects of facility operations and are habitually under-resourced, enabling enforcement disasters. For instance, Utah’s Office of Licensing has 30 employees to regulate over 3,000 treatment centers.

Difficulty in Information Sharing: The lack of a common database for facility ownership, quality of care reports, and financial information across states exacerbates the problem, preventing comprehensive oversight.

Evasion of Liability: The private equity model, which organizes each portfolio company as separate legal entities, limits the fund’s legal liability, even when exercising managerial control.

Dividend Recaps and Cost-Cutting: Private equity firms engage in dividend recapitalizations, leveraging debt onto companies to pay shareholders. This creates an incentive for individual facilities to cut overhead costs, including staffing and service quality, to meet debt obligations, which can be detrimental to the vulnerable youth they serve.
  • July 1991 – Straight – Boston closes when the state of Massachusetts pulls its foster care license.
  • July 26, 1991 – Straight – Washington, DC 1 (Springfield, Virginia) voluntarily closes the day before a licensing hearing, while under criminal investigation.
    • July 29, 1991 – Straight – Washington, DC 2 opens in Columbia, Maryland, three days after the Virginia closure, with clients transferred from the Virginia facility.
    • Three months later, Straight, Inc. opened a new facility in Dallas, Texas.
  • 1991 – Brown Schools files for Chapter 11 bankruptcy under the name Healthcare International
  • February 28, 1992 – Straight – Columbia (Maryland) closes, with officials reportedly abandoning clients.
  • August 14, 1992 – Straight – Orlando officially closes. On the same day, Michael Scaletta incorporates SAFE, Inc., taking Straight – Orlando’s marketing director, Loretta Parrish, and clients. SAFE, Inc. leases its facility from Straight.
  • April 1993 – The National Headquarters for Straight, Inc. transfers from Saint Petersburg, Florida to Marietta, Georgia.
  • April 24–25, 1993 – Straight – St. Pete closes, transferring its remaining clients to Straight – Atlanta.
    • It had survived multiple investigations, warnings, probations, civil suits (including the Karen Norton judgment), and criminal investigations. It was later investigated by the FBI for fraud (no indictments) and by the state health department for alleged interference by Mel Sembler.
  • May 1993 – The National Headquarters for Straight, Inc. begins operating in Marietta, Georgia.
  • June 18, 1993 – Former Straight official Helen Gowanny helps found Pathway Family Center near Detroit.
  • June 21, 1993 – Kathleen M. Cone, a Straight official, incorporates Phoenix Institute for Adolescents, a Straight-like program, near Straight – Atlanta.
  • June 1993 – Three Springs announces continued expansion in Georgia
    • Planned outdoor therapeutic and indoor secure settings
    • Target populations: female sexual abuse victims, dual-diagnosis residents with low IQ, learning disabilities, female sexual offenders, male sexual offenders with low IQ
    • Also offered summer therapeutic adventure programming in Trenton, AL and Centerville, TN, including:
      • Backpacking, canoeing, nature study
      • Focus on environmental appreciation and personal development
    • Opened The Psychology Center of Atlanta for outpatient services
      • Director: Dr. John Stuart Currie; Administrator: Rosemary Tippett, M.A.
      • Offered family triage and neuropsych assessments for those considering residential placement
  • July 1–2, 1993 – Straight – Atlanta (the last operating Straight facility) closes. This also marks the formal cessation of “Straight, Inc.” as the treatment arm.
  • July 2–3, 1993 – Straight, Inc. formally ceases to exist, though Straight Foundation, Inc. (the education arm) continues to exist.
  • 1993 – Straight – Detroit closes.
  • 1993 – Brown Schools emerges from Chapter 11 and rebranded as Healthcare America
  • 1993 – Bob Lichfield takes over the management of Brightway Adolescent Hospital in St. George, Utah, under an agreement with its owner, the Utah Alcoholism Foundation.
    • Health officials said the hospital promptly started sending kids to tough-love behavior programs.
    • The foundation ended the agreement in 1998 and closed the hospital (Deseret News, March 14, 1998).
  • December 5, 1995 – Straight Foundation, Inc. changes its name to its current name, the Drug Free America Foundation, Inc., to distance itself from the “child abuse” connotation of the “Straight” name.
  • 1995–1996 – Eckerd Youth Alternatives continues to expand.
    • 1995 – Opened Camp E-Tik-Etu in Elizabethtown, NC and Camp E-Ten-Etu in Manson, NC
    • 1996 – Opened Camp E-Ma-Laku
  • January 1996 – Brown Schools again files for Chapter 11 bankruptcy, then re-emerges as Brown Schools
  • 1996 – Tranquility Bay/Caribbean Centre for Change, a WWASP-affiliated program, is incorporated.
    • Other corporations associated with J. Ralph Atkin, a WWASP affiliate, were also established this year.
  • 1997 – Brown Schools acquired by McCown De Leeuw & Co. in a leveraged buyout including $55 million in debt
  • 1998 – WWASP formally incorporates

Private equity drives rapid expansion #

An electronic stock ticker board
Francisco Gonzalez, CC BY 2.0, via Wikimedia Commons
  • 1998 – Aspen Education Group formed by private equity firms The Sprout Group and Frazier Healthcare
  • 1998 – Brown Schools acquires CEDU Education for $78M
  • 1999 – Brown Schools issues $15 million in subordinated debt to TIAA for expansion.
  • 1999 – Sequel Youth & Family Services co-founded by John “Jay” Ripley
  • 2000 – Eckerd opens Camp E-Ma-Etu in Boomer, NC.
  • May 30 2000 – Charter Behavioral Health Systems agrees to sell 11 hospitals to Universal Health Services as part of its Chapter 11 bankruptcy reorganization
    • Charter had previously announced it would close 33 facilities and sell all 37 remaining hospitals admitting patients
    • This marked the collapse of what was once the largest private operator of behavioral health facilities in the U.S., with hospitals in 21 states
    • Sale included hospitals in: Philadelphia (PA), Newark (DE), Lexington (KY), Greer (SC), Memphis (TN), Olive Branch (MS), and Provo (UT)
    • Source: Atlanta Business Chronicle, May 29, 2000
  • August 21 2000 – UHS acquires 11 behavioral health facilities from Charter Behavioral Health Systems and one from Crescent Real Estate
    • Facilities included: Fairmount (PA), Rockford (DE), Anchor, Talbott, Laurel Heights, Peachford (GA), Ridge (KY), Carolina Center (SC), Lakeside (TN), Parkwood (MS), Provo Canyon School (UT), and real estate in McAllen (TX)
      • Part of Charter’s broader strategy to sell all 37 remaining hospitals and close 33 others
    • Deal included 1,400 licensed beds and generated ~$150M in revenue and $27M in EBITDA
    • Total purchase price: $105M
    • Acquisition made UHS one of the largest behavioral health providers, adding strong performers from the Charter portfolio
  • 2001 – The Mentor Network acquired by Madison Dearborn Capital Partners and Windrose Health Investors
  • 2002 – Warburg Pincus invests in Aspen Education Group
  • Summer 2002 – Attorney Charles Moody’s son, Chase Moody, 17, dies at On Track, a wilderness camp run by the Brown Schools, after being restrained for talking after lights out.
    • Death ruled traumatic asphyxiation.
    • Brown Schools claimed “excited delirium.”
  • 2003 – Late 2002 to early: Texas state investigators find 28 regulatory violations at Brown Schools.
    • Restraint labeled “cruel and unusual punishment”.
    • No fines, criminal charges, or licensing penalties imposed.
    • On Track shut down, lease canceled.
  • 2003 – Moody launches lawsuit against the Brown Schools and individual staff.
    • Also testifies in favor of restraint legislation at the Texas Capitol.
  • July 2004 – Brown Schools loses a major Dallas County juvenile justice contract
  • October 21 2004 – A technician at Manatee Palms Youth Services (a Brown Schools program) is arrested for sexual abuse of a 17-year-old male resident
    • Rhonda A. Smith, 23, admitted to sexually abusing the youth on three occasions while employed as a clinical health technician
    • Arrested by the Manatee County Sheriff’s Office
  • 2005 – Acadia Healthcare formed
  • March 2005 – Brown Schools files for bankruptcy and closed several programs, including:
    • Ascent, Rocky Mountain Academy, Boulder Creek Academy, Northwest Academy, Milestones Transitional Living, CEDU High School and CEDU Middle School
    • Liquidated many assets
    • Remaining open programs transferred to trustee oversight: King George School (VT), Kingsbury Academy (FL), NI’KE Academy (FL), Excel Academy and Harris County Juvenile Justice Charter Schools (TX)
    • 700+ staff laid off with no compensation for final 2 weeks; class action lawsuit filed under the WARN Act.
  • October 10 2005 – UHS acquires KEYS Group Holdings, LLC (including Keystone Education and Youth Services)
    • Added 46 facilities in 10 states:
      • 21 residential treatment facilities (1,280 beds)
      • 21 non-public therapeutic day schools
      • 4 detention facilities
    • Deal worth $207 million, expected to generate $165 million/year
    • Expanded UHS into therapeutic day schools for the first time
  • 2005 – UHS also acquires 5 additional programs from the Brown Schools of Austin bankruptcy:
    • Boulder Creek Academy (100 beds, ID)
    • Northwest Academy (120 beds, ID)
    • Rocky Mountain Academy (80 beds, ID)
    • Outdoor intervention program (Naples, ID)
    • King George School (90 beds, VT)
  • 2006 – Aspen Education Group acquired by CRC Health Group (~$300M)
    • CRC backed by Bain Capital (Mitt Romney co-founder)
  • 2006 – Vestar Capital Partners acquires The Mentor Network from Madison Dearborn Capital Partners and Windrose Health Investors
  • 2007 – Camp E-Ma-Laku in Suches, GA briefly closes before rebranding to Eckerd Academy of the Blue Ridge.
  • 2008 – Family Help & Wellness founded by Tim Dupell, former Aspen EVP/CFO
  • 2009 – GI Partners begins ownership of AdvoServ
  • April 3 2009 – Three Springs announces closure of its New Dominion campus in Dillwyn, VA
    • Program had operated outdoor therapeutic services for 30 years
    • Closure due to changes in state referral models and economic pressures
    • 80% of students came via state/local government referrals
    • Remaining students assisted with graduation or alternative placements
  • January 2 2010 – Sequel Youth and Family Services acquires Three Springs, Inc.
    • Added outdoor and boarding school programs including:
      • Paint Rock Valley (Trenton, AL)
      • Auldern Academy (Siler City, NC)
    • Brought Sequel to 22 programs nationwide
    • Acquisition aimed to expand private educational and therapeutic programming
  • 2010 – Private equity firm Levine Leichtman Capital Partners (LLCP) acquires Sequel Youth & Family Services
  • April 21 2011 – Sequel announces closure of Paint Rock Valley campus
    • Originally opened in 1985, the first Three Springs program
    • Closure cited economic struggles and low enrollment
  • 2012 – The Provo campus of Provo Canyon School is placed on “conditional status” by regulators after staff fail to properly watch students, leading to a boy running away, stealing a car, and causing a fatal car crash.
  • 2013 – The Springville campus of Provo Canyon School is placed on “conditional status” after a girl is injured during a restraint.
  • 2013 – Private equity firm Alaris Royalty purchases Sequel Youth & Family Services from LLCP
  • 2014 – Private equity firm Trinity Hunt Partners makes its initial investment in Family Help & Wellness
  • 2014 – Aspen-owned Island View RTC closed and was subsequently acquired by Family Help & Wellness, which then reopened it as Elevations
  • 2014 – Vestar Capital Partners facilitated an Initial Public Offering (IPO) for The Mentor Network, while retaining a majority stake in the company
  • 2015 – The Provo campus is again placed on “conditional status” due to staff injuring students during restraints on two separate occasions and having a seclusion room with a lock on it (a violation).
  • 2015 – Acadia Healthcare, a publicly traded company, acquires CRC Health Group, which includes Aspen Education Group.
    • Bain Capital, the former owner of CRC, sold it for nearly $1.2 billion
  • 2015 – Wellspring Capital Management acquires AdvoServ from GI Partners
  • 2016 – Maryland terminates its contract with AdvoServ and relocated its clients following the death of a 15-year-old girl at an AdvoServ facility
  • 2017 – Wellspring Capital Management rebrands AdvoServ as Bellwether Behavioral Health.
  • 2017 – Altamont Capital Partners acquires Sequel Youth & Family Services from Alaris Royalty
    • Altamont Capital Partners immediately adds debt to Sequel’s balance sheet, a practice it continues in 2018 and 2021
  • 2018 – The Blackstone Group acquires the Center for Autism and Related Disorders for approximately $700 million
  • 2019 – Private equity firms Centerbridge Partners and The Vistria Group acquire The Mentor Network in a leveraged buyout, taking it private
  • 2020 – Private equity firms Veronis Suhler Stevenson (VSS) and Cimarron Healthcare Capital acquire Ascent Behavioral Health.
  • 2020 – Bain Capital acquires Broadstep Behavioral Health.
  • 2021 – Onex Partners acquires Newport Academy
  • 2021 – Pine Tree Equity invests in Innercept
  • 2021 – The Mentor Network rebrands as Sevita Health
  • 2022 – The Senate Committee on Finance and Senate Committee on Health, Education, Labor, and Pensions launched an investigation into allegations of abuse and neglect at RTFs operated by Universal Health Services (UHS), Acadia Healthcare (Acadia), Devereux Advanced Behavioral Health (Devereux), and Vivant Behavioral Healthcare (Vivant)
  • 2024 – The Senate Committee on Finance’s two-year investigation concluded that the RTF business model, which prioritizes profit over child well-being, leads to systemic harm. Acadia Healthcare is noted as actively expanding its RTF business

Sources #

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