American Addiction Centers


American Addiction Centers is a publicly traded healthcare facilities and services company providing treatment for substance abuse and behavioral addictions. Formerly known as Forterus Inc., it is headquartered in Brentwood, Tennessee, and operates as a subsidiary of AAC Holdings.
The company delivers addiction treatment services in residential and outpatient facilities, as well as providing drug testing and diagnostic laboratory services.

History

American Addiction Centers was founded in 2007 by Michael Cartwright as Forterus Inc. In October 2014, the company went from privately held to public, becoming the first publicly traded addiction treatment provider in the U.S. As of 2019, it remains the only public company in the U.S. addiction treatment industry.
In December 2014, American Addiction Centers made its first acquisition as a public company, taking over Recovery First Inc., a Florida-based substance abuse and rehab services company. By 2015, American Addiction Centers ran 8 facilities in 6 states after acquiring several sites in California, New Jersey, Rhode Island and Mississippi. Among the company’s acquisitions in 2015 were also two digital marketing firms focused on publishing online content on substance abuse – Referral Solutions Group and Taj Media.
In 2015, the company launched a Behavioral Health Academic Scholarship Program, providing scholarship funds to college students pursuing careers in addiction-related fields.
By 2018, American Addiction Centers was operating 12 residential treatment centers and 18 outpatient facilities, and reported a revenue of almost $296 million.
In 2019, AAC received three warnings from the New York Stock Exchange, risking being delisted. The third warning was issued after AAC stock traded below $1 for at least 30 trading days.

Controversy

In 2018, a California jury issued a verdict against AAC, awarding $7 million to the family of a patient who committed suicide in a AAC facility and died 20 hours after his arrival.
According to an investigation by Mother Jones, centers managed by AAC often leave patients unattended, which led to some patient deaths and lawsuits. AAC denies it and claims that their death rate is the lowest in the industry.