Acadia Healthcare Company, Inc. (NASDAQ:ACHC) Q1 2024 Earnings Call Transcript

Page 5 of 5

And I think the team did a really good job of just managing through that. And so that gives us a lot of confidence really in the EBITDA outlook for the balance of the year. If I think about those sort of payments and what those supplemental funds look like, I think that’s where you are headed. I mean some states, as you know, use this to enhance what they can pay for the Medicaid rates and really to bolster those and intending to correct for what’s, frankly, historically inadequate reimbursement for keeping up with the cost of care for our patients. And I know some of our peers have had some large distributions in specific states. We typically see those on a year-to-year basis, they are relatively consistent. And frankly, we just consider it part of our reimbursement as we go through.

That said, if we have something that’s outsized is a one-time payment, we will call those out. I think we have done it a couple of times in the past. And as you mentioned, we called that out sort of for one state with our guidance that we put out earlier this year, and that was $10 million for the full year and $7 million in Q1.

Operator: And our next question will come from Sarah James with Cantor Fitzgerald. Please go ahead.

Unidentified Analyst: Hi. This is Gabie on for Sarah. I just had a quick question on what results you guys have seen from the remote monitoring at the 53 facilities that you had rolled out by the end of last year. And if you have any more plans to add to more facilities? Thank you.

Chris Hunter: Hey Gabie, this is Chris. I will take that one. We have seen very positive results from the remote monitoring that we have now implemented in all 53 of our acute facilities. This is technology that we think has been critical to ensuring that our scheduled observation rounds are taking place at the appropriate time. I think our staff has told us that they feel safer and more comfortable with this mechanism in place. Our patient experience and our patient satisfaction scores have actually gone up. And we have got an extremely positive feedback from surveyors that have come into our facilities, being able to show them the results that we have had from this monitoring, whether it’s state surveyors or even talking to others across the board, just it’s been very consistently positive feedback.

So, we are looking at potentially expanding that even further. We have also have been investing pretty heavily in staff safety with personal alarm buttons for all of our hospital staff that we are also rolling out this year. And I think you will continue to see more of that as we look to continue to improve our overall employee engagement, but also our patient satisfaction, and it’s proving out.

Unidentified Analyst: Okay. Awesome. Thank you.

Operator: And this concludes our question-and-answer session. I would like to now turn the conference back over to Chris Hunter for any closing remarks.

Chris Hunter: Thank you. Before we end the call, I just want to again thank our committed facility leaders, clinicians and approximately 23,500 dedicated employees across the country, who have continued to work tirelessly to meet the needs of the over 75,000 patients that we treat daily and their families in a safe and effective manner and who every day exemplify our purpose as an organization to lead care with light. We have a strong foundation and a proven strategy for driving growth and delivering greater value to both the patients we serve and our shareholders. Thank you for being with us this morning and for your interest in Acadia. If you have additional questions today, please do not hesitate to contact us directly. Have a good day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.

Follow Acadia Healthcare Company Inc. (NASDAQ:ACHC)

Page 5 of 5