Montrose Behavioral Health Hospital

The building formerly known as Chicago Lakeshore Hospital

Acadia Healthcare has purchased three vacant behavioral health facilities on the north side of Chicago with plans to launch operations starting next summer. 

Terms of the transaction were not disclosed in a press release. 

The Franklin-based behavioral health giant will have to make capital investments to improve the infrastructure of the structures, which include a 60-bed children’s hospital, a 101-bed adult hospital and an outpatient facility. 

The children’s facility is slated to launch operations by next summer. Formerly Chicago Lakeshore Hospital, the center was stripped of its Medicare certification and subsequently shut down in early 2020, after several years of abuse and neglect allegations under former owner Signature Healthcare Services. 

The new health system created by the transaction will be called Montrose Behavioral Health Hospital. The adult hospital is expected to begin operations in early 2023.  

“We are pleased to have the opportunity to enter the greater Chicago area and address the significant need for behavioral health services for adults and children in this important market,” Debbie Osteen, chief executive officer of Acadia Healthcare, said in the release.

“This transaction aligns with our strategy to identify underbedded markets for new facilities and opportunities that meet the criteria of our disciplined capital allocation framework. We intend to make significant investments across the three locations to ensure that Montrose Behavioral Health Hospital meets our industry-leading standards for exceptional patient care."