Universal Health Services, King of Prussia, Pa., has agreed to sell four psychiatric facilities in order to win antitrust clearance for its $3.33 billion acquisition of Psychiatric Solutions, which was completed Monday, according to Universal.
UHS completes Psychiatric Solutions acquisition
The agreement with the Federal Trade Commission gives Universal six months to divest three of the facilities that were part of Psychiatric Solutions prior to the deal. Those facilities are 80-bed Montevista Hospital and Red Rock Behavioral Health Hospital, both in Las Vegas, and 53-bed MeadowWood Behavioral Health, New Castle, Del. The agreement provides nine months for Universal to sell 108-bed San Juan (P.R.) Capestrano Hospital. The four facilities recorded revenue of $52.3 million for the nine months ended Sept. 30 and $64.5 million for 2009, according to Universal.
According to the FTC, Universal also must divest 11 outpatient clinics in Puerto Rico. The FTC approved the proposed consent order by a 5-0 vote. The order will be published in the Federal Register, and the FTC will accept comments on it until Dec. 15.
Once the divestitures are completed, Universal would operate 192 behavioral-health facilities and 25 general acute-care hospitals. Universal expects to generate $35 million to $45 million in annual cost savings within three years.
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