Adventist Health signed a definitive agreement to sell their behavioral health hospital in Vallejo to Acadia Healthcare (NASDAQ: ACHC) to strengthen behavioral health services in Solano County and the northern California region. Juniper proudly advised Adventist on this transaction.

Health systems are continually exploring new ways to deliver better healthcare. When it comes to some service lines, particularly behavioral health and ancillary care, this increasingly entails bringing in a focused operator partner. Such a transaction can enhance access and care quality, and also lower financial risk while keeping the business closely integrated with other offerings.

Adventist Health Vallejo, is a 61-bed psychiatric hospital that offers inpatient and outpatient care. Its services include short-term psychiatric care for children, adolescents and adults as well as partial hospitalization services for adults who are experiencing psychiatric problems or a substance abuse disorder. Adventist’s regional tertiary hospital in St. Helena will continue to support the acute care needs of the Vallejo facility.

“Behavioral health and well-being are central to Adventist Health’s mission, and we are committed to taking actions that meet the needs of our communities,” said Steven Herber, MD, president of Adventist Health services in Vallejo and St. Helena, in a press release. “Acadia has the national and local experience, clinical expertise and proven track record to be an ideal community partner. They share our vision of enhancing the hospital’s capabilities to provide high-quality behavioral health and substance use services.”

As a leading provider of behavioral healthcare services, Acadia Healthcare owns and operates treatment facilities throughout the United States and Puerto Rico, including a facility in nearby San Jose, CA. Acadia is solely dedicated to behavioral health and is the partner of choice for many health systems and communities across the country due to its commitment to high quality and integrated care. The investment that Acadia intends to make in the facility and its expertise will help meet the care needs of the community for years to come as the company explores opportunities to expand services.

Recognizing that people and continuity are the heart of behavioral health healing, Acadia Healthcare intends to retain all current staff and associates.

“Adventist Health took great care and consideration in its process to select Acadia as its community partner, and we are proud they recognized the expertise and commitment to quality that we will bring to Solano County. We will invest in the facility to ensure it continues to serve as the center of behavioral health excellence for the surrounding community,” said Dwight Lacy, group president for the Western Region of Acadia Healthcare. “We look forward to building upon the tremendous foundation provided by Adventist Health for many years to come.”

The organizations expect to complete the transaction, following regulatory approval, by mid-2021 and will look for additional opportunities to partner together.