American Addiction Centers
A U.S.-based operator of residential and outpatient addiction-treatment facilities, with associated laboratory, drug-testing, and diagnostic services.
Last updated August 26, 2026
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Overview
American Addiction Centers (AAC) is a United States addiction-treatment company headquartered in Brentwood, Tennessee. It operates a network of residential treatment centers and outpatient facilities serving people affected by substance-use disorders, particularly alcohol and drug dependence. Its clinical model spans different levels of care, allowing patients to receive structured facility-based treatment, residential rehabilitation, or outpatient support according to medical needs, recovery stage, and ability to live outside a treatment setting. The company was co-founded in 2004 by Michael Cartwright. AAC became publicly traded in October 2014 and was described in the supplied reference material as the first publicly traded addiction-treatment provider in the United States. After its public offering, it expanded through acquisitions and facility purchases. Its first acquisition as a public company was Recovery First Inc. in December 2014, a Florida provider of substance-use-disorder and rehabilitation services. During 2015, AAC added treatment sites in several states and acquired Referral Solutions Group and Taj Media, digital marketing businesses focused on online substance-use-disorder content. It also purchased the building associated with Laguna Treatment Hospital in Aliso Viejo, California, for $13.5 million. AAC continued its expansion in 2017 with the acquisition of AdCare, a New England addiction-treatment provider, for $85 million. By 2018, the company reported operating 12 residential treatment centers and 18 outpatient facilities. The supplied reference material states that it reported almost $296 million in revenue for that year. By December 2020, the company operated 26 locations across eight U.S. states. The footprint subsequently changed, including the closure of Sunrise House in June 2023. In addition to direct treatment, AAC has provided drug testing and diagnostic laboratory services. Its laboratory activities support toxicology testing and other clinical processes, and the company has conducted research and patient-outcome work through subsidiaries and external research partners. Examples mentioned in the reference material include outcome studies with Centerstone Research Institute and surveys concerning alcohol consumption during the COVID-19 pandemic and substance-use-disorder risk among LGBTQ+ people. AAC also introduced technology-supported services during the COVID-19 pandemic. Its in-house laboratory provided coronavirus testing for patients and the local Tennessee community, while its mobile application supported telehealth. The company also used EarlySense technology to monitor patient vital signs and continued toxicology testing as part of treatment programs. The company has faced financial, legal, and reputational challenges. In 2019, it received three New York Stock Exchange warnings, including a warning related to its stock trading below $1 for at least 30 trading days. AAC sought Chapter 11 bankruptcy protection in June 2020 and underwent a financial restructuring later that year. Its operations have also been the subject of litigation and investigative reporting concerning patient safety and supervision. A California jury awarded $7 million to the family of a patient who died after attempting suicide at an AAC facility in a 2018 case. AAC disputed broader allegations that its centers routinely left patients unattended. In 2019, AAC sued the National Association of Addiction Treatment Providers for defamation; the case was dismissed in late 2021. The supplied material also describes a 2025 class action concerning alleged exposure of personal and health information after a cyberattack, but the final status and settlement details should be independently verified before publication.
History
American Addiction Centers was co-founded in 2004 by Michael Cartwright and developed as a U.S. provider of treatment for alcohol and drug dependence. Its operating model centers on a network of treatment facilities offering multiple levels of care, including residential and outpatient services. The company also developed laboratory and drug-testing capabilities, giving it an additional clinical-services business alongside facility-based rehabilitation. AAC became a public company in October 2014. The transaction marked a significant change in the company’s corporate profile and was described in the supplied reference as making AAC the first publicly traded addiction-treatment provider in the United States. After the listing, the company began a period of acquisition-led expansion. In December 2014, it purchased Recovery First Inc., a Florida substance-use-disorder and rehabilitation provider. In 2015, AAC added locations in California, New Jersey, Rhode Island, and Mississippi, and its network reached eight facilities across six states. It also acquired Referral Solutions Group and Taj Media, digital publishers focused on substance-use-disorder information and patient-referral marketing. During the same period, it purchased the Laguna Treatment Hospital building in Aliso Viejo, California, for $13.5 million. The company expanded into New England through its 2017 acquisition of AdCare, reported at $85 million. By 2018, AAC operated 12 residential treatment centers and 18 outpatient facilities and reported nearly $296 million in revenue. Growth was accompanied by scrutiny of treatment practices and patient safety. A California jury awarded $7 million in a 2018 case involving the death of a patient who had attempted suicide and died roughly 20 hours after arriving at an AAC facility. Investigative reporting also raised allegations that some AAC-managed centers left patients without adequate supervision, contributing to deaths and lawsuits. AAC denied those broader allegations and stated that its death rate was among the lowest in the industry. AAC encountered capital-markets pressure in 2019, when it received three warnings from the New York Stock Exchange. The final warning related to its shares trading below $1 for at least 30 trading days, creating a risk of delisting. That year, AAC also filed a defamation lawsuit against the National Association of Addiction Treatment Providers. The case was dismissed in late 2021. Financial stress intensified in 2020. AAC sought Chapter 11 bankruptcy protection in June and underwent a financial restructuring later that year. The COVID-19 pandemic also changed the company’s service delivery and operational practices. Its in-house laboratory provided coronavirus testing for patients and the surrounding Tennessee community. AAC introduced telehealth functions through its mobile application, used EarlySense technology to monitor an in-house patient’s vital signs, and continued toxicology testing as part of treatment programs. AAC’s research activities included patient-outcome studies conducted with Centerstone Research Institute in 2018. During the pandemic, the company conducted research and surveys concerning alcohol-consumption patterns and the likelihood of substance-use disorder among LGBTQ+ people, in addition to other alcohol-related studies. By December 2020, the company operated 26 locations in eight states. Its network later changed, including the closure of Sunrise House in June 2023. The supplied material further reports a 2025 class action concerning alleged exposure of personal and health information following a cyberattack; because the supplied source does not independently establish the final legal outcome, that matter remains flagged for review.
- 2023
Sunrise House closes
[1]AAC closed the Sunrise House facility in June.
- 2020
Chapter 11 filing and pandemic-service expansion
[1]AAC sought bankruptcy protection while expanding coronavirus testing, telehealth, patient monitoring, and toxicology-support capabilities.
- 2020
Network reported at 26 locations in eight states
[1]The company reported operating 26 locations across eight U.S. states as of December.
- 2018
Reported network reaches 12 residential and 18 outpatient facilities
[1]AAC reported operating 30 facilities across its residential and outpatient network and nearly $296 million in revenue.
- 2017
AdCare acquired
[1]AAC acquired New England addiction-treatment provider AdCare in a transaction reported at $85 million.
- 2015
Multi-state expansion and digital acquisitions
[1]The company expanded treatment operations into additional states, acquired two digital marketing firms, and purchased the Laguna Treatment Hospital building.
- 2015
Behavioral Health Academic Scholarship Program launched
[1]AAC began providing scholarship funds to students pursuing addiction-related careers.
- 2014
Becomes publicly traded
[1]AAC moved from private ownership to public trading in October, becoming the first publicly traded U.S. addiction-treatment provider according to the supplied reference.
- 2014
First post-listing acquisition
[1]AAC acquired Recovery First Inc. of Florida in December.
- 2004
Company co-founded
[1]Michael Cartwright co-founded American Addiction Centers as a provider of addiction-treatment services.
Products and positioning
A multi-site behavioral-health provider combining residential and outpatient addiction treatment with laboratory, testing, research, and technology-supported care.
Addiction-treatment service
Residential addiction treatment
Facility-based treatment for people with alcohol or drug dependence who require a structured environment and more intensive support than ordinary outpatient care. Residential programs generally combine clinical assessment, therapy, recovery planning, medical oversight where appropriate, and daily participation in a supervised treatment setting. AAC’s residential network has historically included dedicated treatment centers serving multiple U.S. markets.
Behavioral-health service
Outpatient addiction treatment
Treatment delivered without continuous residence at an AAC facility. Outpatient care is intended for patients whose clinical and living circumstances permit them to attend scheduled services while maintaining some work, family, or community routines. It can support continuing care after residential treatment or serve patients who do not require round-the-clock facility-based supervision.
Substance-use-disorder treatment
Alcohol and drug rehabilitation
AAC’s core clinical offering addresses dependence and problematic use involving alcohol and drugs. Programs may include assessment, medically informed treatment, counseling, behavioral-health interventions, recovery planning, and continuing support. The precise services and level of medical supervision vary by facility and patient needs.
Clinical laboratory service
Drug testing and diagnostic laboratory services
AAC provides laboratory-related services that include drug testing, toxicology, and diagnostic support. These capabilities can be used in treatment monitoring and clinical decision-making. The company’s laboratory division is separately led by Mark Calarco, according to the supplied reference.
Digital behavioral-health service · 2020
Telehealth-supported treatment
During the COVID-19 pandemic, AAC added telehealth functionality to its mobile application. The initiative extended portions of treatment support beyond the physical facility and complemented the company’s in-person residential and outpatient model. The current availability and product branding of this service are not specified in the supplied material.
Controversies
2025
Reported cyberattack-related privacy litigation
The supplied material reports a class action alleging that a cyberattack exposed personal and health information and violated health-information privacy requirements. The ultimate legal disposition should be independently verified.
2018
California patient-death verdict
A California jury awarded $7 million to the family of a patient who died about 20 hours after arriving at an AAC facility following a suicide attempt. The case contributed to scrutiny of patient safety and supervision practices.
2018
Investigative allegations concerning patient supervision
An investigation cited in the supplied material alleged that some AAC-managed centers left patients unattended, contributing to deaths and lawsuits. AAC denied the broader allegations and stated that its death rate was the lowest in the industry.
Marketing campaigns
- 2020COVID-19 community and patient testing initiative
Tennessee · United States
AAC used its in-house laboratory to provide coronavirus testing for patients and members of the local Tennessee community during the pandemic.
Outcome. The supplied source describes the testing activity but does not quantify tests performed or clinical outcomes.
- 2015Behavioral Health Academic Scholarship Program
United States
AAC launched a scholarship program intended to support college students preparing for careers in addiction treatment and related behavioral-health fields.
Outcome. The supplied source does not provide recipient numbers, total funding, or subsequent program results.
Brand decisions
2020
Pursue restructuring under Chapter 11StrategyBackground
AAC faced financial pressure and the operating disruption associated with the COVID-19 pandemic.
Action taken
AAC sought Chapter 11 bankruptcy protection in June 2020 and completed a financial restructuring process later that year.
Aftermath
The company continued operating and reported 26 locations in eight states by December 2020, although the supplied material does not describe the restructuring terms.
2020
Add telehealth and pandemic-monitoring capabilitiesProduct launchBackground
AAC adapted treatment operations to reduce infection risks and maintain support during the COVID-19 pandemic.
Action taken
The company launched telehealth functions through its mobile application, provided coronavirus testing, used EarlySense patient monitoring, and incorporated toxicology testing into ongoing treatment.
Aftermath
The measures broadened AAC’s technology-supported and laboratory-supported care model during the pandemic.
2017
Acquire AdCareM&ABackground
AAC pursued regional expansion in the New England addiction-treatment market.
Action taken
The company acquired AdCare, a New England treatment provider.
Aftermath
The acquisition expanded AAC’s treatment presence in the northeastern United States.
Acquisition consideration. $85 million (2017)
2015
Expand through facilities and digital-content acquisitionsM&ABackground
AAC sought to increase its treatment footprint and strengthen online substance-use-disorder information and referral activity.
Action taken
It acquired sites in several states, bought Referral Solutions Group and Taj Media, and purchased the Laguna Treatment Hospital building in Aliso Viejo.
Aftermath
By 2015, AAC operated eight facilities in six states, according to the supplied reference.
Purchase price for Laguna Treatment Hospital building. $13.5 million (2015)
2014
Acquire Recovery First after public listingM&ABackground
AAC began acquisition-led expansion shortly after becoming publicly traded.
Action taken
The company acquired Recovery First Inc., a Florida substance-use-disorder and rehabilitation provider, in December 2014.
Aftermath
The deal marked AAC’s first acquisition as a public company and preceded further geographic expansion.
Sources1 sources
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