National Medical Enterprises has agreed to sell its management services division to Specialty Healthcare Services, a new firm headed by Howard B. Finkel, the division's current president and chief operating officer.
Mr. Finkel and his investors had been negotiating to buy the business, which was targeted for divestiture by the Santa Monica, Calif.-based hospital chain (May 30, p. 15).
Terms of the deal weren't disclosed.
The division manages 28 psychiatric units with 700 beds, five chemical dependency units with 84 beds, 19 physical rehabilitation units with 322 beds, and 19 outpatient and day treatment programs.
According to MODERN HEALTHCARE's 1994 contract management survey, the NME division was the nation's fourth-largest psychiatric services provider.
Specialty Healthcare Services will be based in Denver. The deal is expected to be completed by the end of the year.
Mr. Finkel, who will be the company's chairman and chief executive officer, said the "ability to offer a full spectrum of specialty healthcare services will be the key to our future growth as an independent company.'