Universal Health Services has applied for permission to sell a 53-bed behavioral health hospital in New Castle, Del., to Pioneer Behavioral Health as part of Universal's $3.3 billion acquisition of Psychiatric Solutions.
UHS seeks to divest Del. behavioral hospital
The Federal Trade Commission approved Universal's purchase of Psychiatric Solutions (PDF) in November on the condition that it divest four hospitals and 11 clinics in markets where the acquisition would have harmed competition, including MeadowWood Behavioral Health in New Castle.
In its application to sell MeadowWood (PDF), UHS said it discussed a potential deal with 20 different companies before it chose Pioneer, of Peabody, Mass., as its new competitor in the Delaware market. The exact terms of the deal were redacted, but the application says Pioneer has arranged for a $32.5 million loan to buy the facility, including a $3 million revolving line of credit.
In addition to MeadowWood, the trade commission ordered UHS to divest 80-bed Montevista Hospital and Red Rock Behavioral Health Hospital, both in Las Vegas, and 108-bed San Juan (P.R.) Capestrano Hospital. Universal also must divest 11 outpatient clinics in Puerto Rico.
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