Rehab giant closes facilities, lays off workers

aac stock price

aac stock priceAmerican Addiction Centers, one of the nation’s largest for-profit drug and alcohol recovery chains, with facilities in Las Vegas, is closing centers in California and Louisiana and laying off employees, including an undisclosed number of workers in Las Vegas.

AAC owns Solutions Recovery, Resolutions and Desert Hope in Southern Nevada.

The Current has obtained an email addressed to all AAC staff, in which CEO Michael Cartwright notifies employees of the closure of the company’s San Diego Addiction Treatment Center, discloses the layoffs, and says the company is “exploring strategic options” for facilities in Louisiana.

“While AAC will continue to save lives of those seeking our help, as a publicly-traded company, we have a responsibility to be good stewards of our financial resources: this responsibility includes a strategic focus to improve the overall quality and efficiency of operations within the company,” Cartwright wrote in the email.  

AAC became a publicly traded company in 2014.  The stock reached a peak of $46.60 in July 2015 and has since plunged to $2.

The company has been plagued by allegations of conflict of interest relating to its drug testing business and was targeted by short-sellers.  In July, Cartwright testified, along with other industry representatives, before a congressional subcommittee examining online marketing practices in the addiction recovery industry. 

AAC was also charged with murder in California in connection with the death of a patient.  The charges were ultimately dismissed by a judge. But critics point out AAC failed to disclose patient deaths in its initial public stock offering.

A spokesperson says the company is laying off “a small amount” of employees in Las Vegas.  

“For several years AAC has saved thousands of lives in our treatment centers around the country,” the spokesman said.  The decision to close the facility was not made lightly and our top priority remains serving our patients, including those currently at San Diego and Townsend. This was a business decision made to help enable AAC’s longterm success,” the spokesman said.

Author’s note:  The original version of this story included a statement from AAC’s spokesman that the company was closing its Louisiana facilities.  The company has retracted that statement and says it is exploring its options.

Dana Gentry
Reporter | Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana is the mother of four adult children, three cats, three dogs and a cockatoo.

5 COMMENTS

  1. Thank you for sharing this information. AAC is a horrible company that preys on sick desperate people in need of treatment. It is the Purdu Pharma of addiction treatment and needs to be shut down.

  2. There are active groups of competitors conducting due diligence right now in California and Louisiana. There is nothing worth buying, the competition is rampantly all involved in fraud and violation of about every rule in all the books. This needs to be broken apart. Look at Kaiser’s 4,000 Mental Health employees on strike in California.

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