Charter Medical Corp., the nation's largest chain of psychiatric hospitals, bought two Boston-area hospitals and merged its Albuquerque, N.M., hospital with one owned by Columbia/HCA Healthcare Corp.
In Massachusetts, Charter bought Westwood Pembroke Health System, Canton, Mass., which includes 115-bed Pembroke (Mass.) Hospital and 100-bed Westwood (Mass.) Lodge Hospital, fourPsychiatric care
partial hospitalization centers and a group practice. Terms were not disclosed.
Atlanta-based Charter bought the system from its founder and medical director, Gary Jacobson, M.D., who retains a 10% interest.
In addition, Charter agreed to combine 80-bed Charter Hospital of Albuquerque with 92-bed Heights Psychiatric Hospital, Albuquerque, which is owned by Nashville, Tenn.-based Columbia. The two hospitals will be owned by a partnership in which Charter is the general partner.
The consolidation is expected to be a model for Charter and Columbia in other markets, officials said. The two hospital chains own freestanding psychiatric hospitals in about 15 markets, they said.
Joel Hart, chief executive officer of Charter Hospital of Albuquerque, said the two facilities had been rivals, but they decided to combine resources to compete more efficiently in the market. Albuquerque has one other freestanding psychiatric hospital, and each of the city's three large hospital systems has a psychiatric unit, he said.
Both the Charter and Columbia hospitals will remain open, but services will be consolidated to make space for a new geriatric psych unit, Hart said.