Universal Health Services, King of Prussia, Pa., has rescinded its application to the Federal Trade Commission seeking approval to sell two Las Vegas psychiatric hospitals to Dr. Soon Kim through Signature Health Services, Southfield, Mich., according to a letter from UHS (PDF) the FTC posted on its website.
UHS changes course on Las Vegas deal
UHS is still required to divest the hospitals under the terms of the FTC's approval in November of its $3.33 billion acquisition of Psychiatric Solutions, according to an FTC news release.
In June, UHS asked the FTC to approve the sale to Signature Health, which does business as Aurora Behavioral Healthcare. Terms of the deal were not disclosed. UHS did not explain in its letter to the FTC why the deal faltered.
Kim could not be reached at deadline. A company that lists Kim as a manager announced plans in March to build a psychiatric hospital in Las Vegas.
Kim settled a lawsuit with the state of Michigan for $350,000 in 2009 after piles of medical records were found burning on his farm west of Detroit.
Earlier this year, a whistleblower lawsuit alleging “minimal, substandard care” at Aurora Las Encinas (Calif.) Hospital was unsealed in U.S. District Court in Los Angeles, according to the Los Angeles Times.
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