Lifepoint Health acquires Behavioral Health Facility from Cornerstone Healthcare Group

Brentwood, Tennessee-based healthcare system Lifepoint Health has acquired Cornerstone Behavioral Health El Dorado.

Terms of the deal to acquire the Tucson, Arizona-based facility have not been disclosed. Lifepoint Health has yet to respond to additional questions.

Cornerstone Behavioral Health El Dorado comprises 54 beds and employs approximately 100 people. Lifepoint Health will add 50 beds in the coming months, according to the release.

The deal contributes to Lifepoint Health’s growth in the behavioral health space, called Lifepoint Behavioral Health. It operates more than 30 behavioral health units in partner hospitals and three inpatient behavioral health hospitals.

“Together, we have opportunities to not only further strengthen the care that Cornerstone Behavioral Health El Dorado provides to its communities, but also to expand behavioral health access to these vital services across our country,” said Lifepoint President Russ Bailey Behavioral Health in a press 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. Headquartered in Dallas, Texas, the group operates 15 specialty hospitals and eight senior residences. It also employs 3,000 people.

According to the American Hospital Association, in 2020 the US had 645 specialized behavioral health hospitals – about 11% of all hospitals. The AHA reported that about 47% of behavioral health hospitals are “investor owned” and that 60 behavioral health hospitals were built between 2016 and 2020.

The US is facing what many see as a shortage of psychiatric beds amid broader demand for behavioral health services. Many states are seeking solutions to archaic federal rules that limit the impact of programs like Medicaid on increasing access to care.

The largest operators in the space are trying to attract additional partners to develop behavioral health facilities, especially hospitals. Franklin, Tennessee-based Acadia Healthcare Co. (Nasdaq: ACHC) has indicated its preference for joint ventures with regard to new expansion.

Lifepoint Health’s portfolio is strongly focused on acute and post-acute care. It operates 62 community hospital campuses, 27 rehabilitation centers and more than 170 other healthcare locations in 28 states.

Behavioral health settings can be successful as standalone surgeries. However, Universal Health Service (NYSE: UHS) is pushing its activities in acute care hospitals and behavioral health facilities closer together to find more synergies between the two. UHS executives say this would be a first for the company.

Lifepoint Health acquires Behavioral Health Facility from Cornerstone Healthcare Group

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