After more than a year of declining stock performance, behavioral health giant Acadia Healthcare (Nasdaq: ACHC) has brought back its former CEO, Debbie Osteen, to the role.
Osteen will be taking over from Christopher Hunter, who was first named CEO in April of 2022.
This transition comes as Acadia has faced a number of legal and operational headwinds over the past few years, causing its stock price to fall by more than 70% over the past year.
“As Acadia continues to take decisive steps to optimize its growth investments and existing portfolio amidst ongoing macro headwinds facing many healthcare providers, the Board believes now is the right time to transition leadership,” Reeve Waud, chairman of Acadia’s board of directors, said in a statement. “Debbie is a mission-driven executive with a commitment to patients who helped transform Acadia into the leading provider of behavioral healthcare in the U.S.”
On the legal side, Acadia has faced several issues that have resulted in financial losses. Acadia has been subject to ongoing investigations by the Department of Justice and the Securities and Exchange Commission.
Additionally, in November, the company agreed to pay $179 million to settle a securities fraud class action lawsuit. The business was also subject to sexual abuse and misconduct allegations. The company has since closed the facility at the heart of those allegations.
Operationally, the operator has also made several changes. In the fall of 2025, Hunter announced that the organization had paused several de novo development projects to focus on investing in markets with favorable reimbursement environments.
In September, Hunter revealed Acadia planned to cut spending by $300 million in 2026. Later that month, the provider shuttered five eating disorder facilities, resulting in the layoffs of 400 employees.
Analysts are positive about the leadership transition.
“We view the announcement this morning that Debbie Osteen is returning to Acadia as its CEO positively,” global investment bank Jefferies said in a note. “Debbie brings decades of experience in the behavioral health industry, having run both Acadia and Universal Health’s behavioral business, prior to her departure from ACHC in 2022. In her previous stint at Acadia, Debbie was brought on by the board to turn the company’s operations around, including Acadia’s exit from the UK with the sale of its Priory business. Through a stringent focus on operations, Debbie allowed Acadia to stabilize its operations, which translated to an almost 100% increase in the stock’s price during her tenure.”
This isn’t the first shakeup in Acadia’s c-suite in recent months. In October, the provider named Todd Young as chief financial officer, following investor pressure calling for changes at the organization.
Additionally, in late 2025, the company’s chief operations officer, Dr. Nasser Khan, announced his departure.
“We are confident that with [Osteen’s] deep knowledge of Acadia and track record of success, Debbie is the right person to step into the CEO role while the Board conducts a comprehensive search for a long-term successor and continues to evaluate all paths to deliver enhanced shareholder value,” Waud continued.