Acadia Healthcare considers underperforming UK Priory sites

US health giant Acadia Healthcare has said it could sell or close some Priory Group facilities as challenging trading conditions continue to erode UK margins.

Chairman and chief executive Joey Jacobs said Acadia was in the process of identifying Priory sites for potential sale but was yet to make a final decision on their future.

We have more than 500 facilities [in the UK]. We’re looking at the number of lower performing facilities and what we can do with them. And worse-case scenario it would be we would close them, and we are not averse to doing that. If we decided, we could put 20 facilities together and maybe somebody would want them – we would look at that too but primarily, if we can’t turn around the lower performing facilities, then we will make a decision to close them,‘ he said.
Acadia’s future ownership is itself under intense speculation as rumours circulate that private equity is circling the (US$3.8bn) market cap Group.

Jacobs said occupancy rates in the UK were forecast to recover – though not by much – as the NHS commissioned new services. Overall, however, Acadia expects difficulties resulting from the nursing shortage to continue for the foreseeable future.