Acadia Health Care, current owner of former CRC Health and Aspen Education — Introduction

CRC Health, which acquired Aspen Education, is now owned by Acadia Health. CRC Health had been a major provider of concern to us, although we acknowledge that CRC Health had some high quality facilities. We simply could not be confident that their facilities will not compromise the best interests of patients/ clients in order to increase earnings. About a decade ago, Aspen Education, an organization with some quality offerings was purchased by CRC Health which was then a Bain Capital subsidiary, best known for substance abuse programs serving people of limited financial ability. More recently, we learned that Acadia had purchased CRC Health with a large part of the purchase paid for by transferring Acadia stock to Bain. We do not know the percentage interest now held by Bain but we remain concerned about whether decisions will be based upon client needs or the financial bottom line.

Conversations we have had with people we trust, who have inside knowledge of Acadia, lead us to be on the optimistic side about Acadia. However the continued involvement of Bain Capital is a worry. We do not have an overall negative view of Bain Capital. We generally have not had good experience with companies of this size in the Health Care business. We do not generally oppose for-profit providers in the health care business. We do oppose companies shortchanging mental health services to clients/ patients they have accepted and committed to meeting their needs, in the interest of improving their profit position. We are not comfortable with Bain Capital regarding that narrow issue.