When Acadia Healthcare appointed R. David Kelly to its board in June 2022, the company gained governance expertise honed through managing one of the nation’s largest pension systems. Kelly served as trustee and chairman of the $197 billion Teacher Retirement System of Texas from 2007 to 2017, overseeing investment strategy for a fund managing retirement benefits for hundreds of thousands of educators.
The Teacher Retirement System role required fiduciary responsibility for investment decisions affecting long-term financial security for Texas teachers. This experience translates to board oversight at Acadia Healthcare, where directors guide capital allocation decisions, financial reporting, and strategic planning for a company serving 75,000 patients daily across 260 facilities. Pension fund management demands rigorous financial analysis, risk assessment, and performance monitoring—skills directly applicable to behavioral healthcare company governance.
Kelly’s investment background spans financial advisory and real estate development sectors, including positions at Goldman Sachs and Salomon Brothers. His work arranging over $50 billion in financial transactions provides perspective on capital markets, debt financing, and equity transactions that support corporate growth. Acadia Healthcare maintains a credit facility and has issued senior notes to fund expansion, requiring board members who understand complex financing structures.
The behavioral health industry faces unique financial challenges, including reliance on government payers and reimbursement rate pressures. Acadia Healthcare derives 57 percent of revenue from Medicaid programs, making policy knowledge about government healthcare funding essential for strategic planning. Kelly’s public sector experience through Teacher Retirement System leadership and gubernatorial appointments provides understanding of government operations and budget processes.
Kelly also served as gubernatorial appointee to the Texas Public Finance Authority from 2001 to 2006, chairing the organization from 2002 to 2006. The authority coordinates state financing for public infrastructure projects, experience relevant to healthcare facility development. His decade-long tenure managing teacher retirement investments included periods of financial market volatility, providing crisis management perspective applicable to corporate governance.
Acadia Healthcare operates as a publicly traded company on NASDAQ, requiring board members who understand fiduciary duties, securities regulations, and investor relations. Kelly’s background managing a major pension fund positions him to contribute to discussions about shareholder value, financial performance metrics, and long-term sustainability strategies for the behavioral health provider network.