Summer 2022: Covenant Health and Acadia Healthcare to Open New Inpatient Behavioral Health Hospital

East Tennessee Behavioral Health Announces CEO, Medical Director

(KNOXVILLE, TN — April 4, 2022) Beginning in summer 2022, Knoxville and its surrounding counties will have a new resource to meet the growing need for accessible, high-quality behavioral healthcare. East Tennessee Behavioral Health is currently under construction and will be a state-of-the-art behavioral health hospital that serves adolescents, adults, and senior adults who have mental health and co-occurring disorders, which includes psychiatric diagnoses and substance use disorders.

East Tennessee Behavioral Health rendering aerial view
East Tennessee Behavioral Health, a new hospital offering comprehensive mental health services, will open in summer 2022 as a joint venture of Covenant Health and Acadia Healthcare Inc., headquartered in Franklin, TN. The organizations began the project in 2020 to address the growing need for accessible, high-quality behavioral health services in Knoxville and the surrounding region.

A joint venture of Knoxville-based Covenant Health and Acadia Healthcare Inc. in Franklin, Tennessee (NASDAQ-ACHC), the three-story, 72,000-square-foot hospital is located on 17 acres on Old Weisgarber Road. The facility will have 90 acute care beds, with expansion capabilities for 48 additional beds.

East Tennessee Behavioral Health construction progress April 2022
Construction is underway on East Tennessee Behavioral Health, a 72,000-square-foot, 90-bed hospital that will offer comprehensive mental health services for adolescents, adults, and senior adults. The hospital will open in summer 2022 as a joint venture of Covenant Health in Knoxville and Acadia Healthcare Inc., headquartered in Franklin, TN.

“The opening of East Tennessee Behavioral Health marks an important expansion of much-needed mental health treatment and resources for our region,” said Jim VanderSteeg, President and CEO of Covenant Health. “Covenant Health has a long-standing commitment to mental health services through Peninsula, our behavioral health division, which includes an inpatient hospital and outpatient programs for adults, adolescents, and children. East Tennessee Behavioral Health will significantly increase both the number of patients we can serve and the treatment and support programs we can offer.”

In preparation for the opening of East Tennessee Behavioral Health, two key hospital leaders have been appointed:

Michael J. Carney
Michael J. Carney, CEO

Michael J. Carney has been named chief executive officer of East Tennessee Behavioral Health. Carney, a Knoxville native, received Bachelor of Science and Master of Public Health degrees from the University of Tennessee at Knoxville. He has more than 30 years of experience in executive leadership for behavioral health facilities, most recently serving as CEO of Brentwood Behavioral Health of Mississippi in Jackson, Mississippi. At Brentwood, he was responsible for the operation of a 121-bed acute psychiatric and residential system that offers inpatient and outpatient services for adults, adolescents, and children.

Mujeeb Khan, MD
Mujeeb Khan, MD, Medical Director

Mujeeb H. Khan, M.D., geriatric psychiatrist at Parkwest Medical Center, has been named medical director of East Tennessee Behavioral Health. Dr. Khan has been a medical director and consulting psychiatrist at facilities in Tennessee, Alabama, Florida, Georgia, and South Dakota. He is a diplomate of the American Board of Psychiatry and Neurology in general psychiatry and is a diplomate or board-certified in subspecialties including geriatric psychiatry, addiction psychiatry, and clinical psychopharmacology, among others.

Dr. Khan has had teaching appointments at several medical colleges and universities and has researched, written, and presented on various psychiatric topics for national/international publications and conferences. He received the NAMI Exemplary Psychiatrist Award from the National Alliance on Mental Illness at the 2000 meeting of the American Psychiatric Association in recognition of contributions to greater public understanding of brain disorders, working to eliminate stigma, fighting discrimination policies, and caring for people who suffer from mental illness.

“We’re very pleased to have these leaders on board, along with other medical, behavioral, and operations specialists who are working diligently to prepare for the opening of East Tennessee Behavioral Health,” said Dr. Jeffrey Woods, Acadia Operations President. “It’s exciting to see the hospital’s construction progress and to know the unique range of services offered by this new facility will make a positive difference in the lives of individuals and families.”

Following its opening, East Tennessee Behavioral Health will serve as a new care coordination “hub” for comprehensive inpatient and outpatient services in the area. Covenant Health and Acadia Healthcare will also collaborate to develop innovative care delivery models for integrating physical and mental health services.

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About Acadia Healthcare

Acadia Healthcare, headquartered in Franklin, Tennessee, is a leading provider of behavioral healthcare services across the United States. As of December 31, 2021, Acadia operated a network of 238 behavioral healthcare facilities with approximately 10,500 beds in 40 states and Puerto Rico. With more than 22,500 employees serving approximately 70,000 patients daily, Acadia is the largest stand-alone behavioral health company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics. For additional information about Acadia Healthcare, visit or call 615-861-6000.

About Covenant Health

Covenant Health is a community-owned healthcare delivery system providing comprehensive services in Tennessee. The health system includes 10 hospitals; outpatient services and clinics; oncology and rehabilitation services; home care; physician practices and community programs. Behavioral health services include inpatient care and outpatient programs through Peninsula, a division of Parkwest Medical Center, hospital-based gero-psych services, and East Tennessee Behavioral Health, a joint venture with Acadia Healthcare. With more than 11,000 employees, affiliated physicians and volunteers, Covenant Health is the Knoxville area’s largest employer and has been named a Best Employer seven times by Forbes. Learn more at

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