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According to Jeffrey Hillis, who leads AdCare as president and general counsel, the same pressures prompting acute care hospitals and physicians groups to align with larger partners drove the decision to partner with AAC Holdings, which operates its American Addiction Centers in eight states, including one in Rhode Island, but mostly in the South and West. Health care is transitioning to a "performance-based" model where providers are paid based on patient outcomes, and it's hard for small organizations to compete because of the costly technology required to track and manage outcomes. Shared commitment, stable leadership That's one of AAC Holdings' niches, and Hillis said it's one of the reasons the organization is an attractive partner. In addition, AAC's specialty is substance abuse. Many other treatment providers focus on overall mental health, rather than on addiction primarily. "They have a shared, focused commitment to helping people with substance use disorders as the primary diagnosis," Hillis said, in an interview in November. Hillis will lead AdCare as CEO after the sale is complete, and his father, P H O T O / E D D C O T E By the numbers Exec: Services will improve in Mass. after sale to Tenn. company \\ By Emily Micucci S ince the 1980s, Worcester-based AdCare Hospital has provided drug and alcohol treatment in Central Massachusetts and beyond, under the steady guidance of the Hillis family. But in 2018, the dynamics will change for the family-owned institution. Pending regulatory review by the Massachusetts Health Policy Commission, AdCare will be acquired by a Brentwood, Tenn.-based, publicly-traded addiction treatment company in the midst of national expansion. ADCARE GOES PUBLIC AAC Holdings credits steady revenue gains to a mixture of organic growth and acquisitions in recent years. 14 HEALTH • Winter 2017 REVENUE 0 $50M $100M $150M $200M $250M $300M 0 300 600 900 1,200 1,500 1,800 BED COUNT 2011 '12 '13 '14 '15 '16 '17* 2011 '12 '13 '14 '15 '16 '17* $28M $294M 124 1,342 Source: American Addictions Centers investor presentation, August 2017 AdCare President Jeffrey Hillis will continue to lead the Worcester-based organization after a planned acquisition.