As the psychiatric hospital business in the United States has contracted, Community Psychiatric Centers has been finding greener pastures elsewhere.
This month, the Laguna Hills, Calif.-based hospital chain opened two psychiatric hospitals in Great Britain, which means one-fourth of CPC's hospitals are now located there. Of its 12 British hospitals, five were opened or acquired in the past 15 months.
"It's a growing business for us. We can provide hotel-like services and there's no waiting list," said Suzanne Hovdey, a CPC spokeswoman, about the chain's hospitals. Most of the patients admitted to CPC facilities opt out of the National Health Service System, Britain's national health insurance. Patients who receive care outside that system either pay for it themselves or use private insurance provided by their employers.
CPC got into the British psychiatric hospital business in 1980 when it bought London's oldest private psychiatric hospital, the Priory Hospital in the Roehampton area. CPC is now the largest provider of psychiatric hospitals in Britain, operating 600 beds. That's more than half of the private psychiatric beds there.
In the fiscal year ended Nov. 30, 1993, revenues from its British hospitals made up about 11% of CPC's $78 million in psychiatric hospital revenues.
Its foreign expansion contrasts with the U.S. market, where CPC either closed or sold six hospitals last year and has one other hospital slated for divestiture. CPC now operates 60 hospitals, 46 of which are psychiatric facilities. The remainder are subacute-care hospitals operated through its Transitional Hospitals Corp. subsidiary.
In other developments, CPC has also reported its fourth-quarter and year-end financial results.
The company reported a 376% increase in net income to $5.5 million, or 13 cents per share, for the fourth quarter ended Nov. 30, 1993, compared with profits of $1.2 million, or 3 cents per share, in the year-ago period. Revenues were up less than 1% to $87 million.
For the year, the psychiatric hospital chain reported a net loss of $24.9 million, or 58 cents per share, compared with net income of $23.1 million, or 52 cents per share, in the year-ago period. The loss reflected a first-quarter write-down for the closed hospitals>