Inpatient Psychiatric Service Providers Can Put Their Minds At Rest As They Settle With FTC To Complete $3 Billion Acquisition
On November 15, 2010, the Federal Trade Commission announced a settlement of its claims that the proposed acquisition of Psychiatric Solutions Inc. by Universal Health Services Inc. would violate antitrust laws by combining the two largest providers of acute inpatient psychiatric services in three geographic markets (Delaware, Puerto Rico, and Las Vegas), decreasing competition for such services (click here to view the FTC complaint). In a press release issued Monday, the FTC described the settlement as “the latest example of the FTC’s ongoing efforts to promote competition in health care markets.” A similar agreement with Nevada’s attorney general was also reached to settle a case filed in the federal district court in Nevada.
As a result of the settlements, Universal Health Services can proceed with its $3.1 billion acquisition of Psychiatric Solutions. The deal gives Universal Health Services 94 psychiatric facilities in addition to the 102 facilities it already owns.
Under the terms of the FTC settlement, Universal Health Services must sell 15 facilities in the three markets to FTC-approved purchasers. Those sales must occur within nine months. Copies of the FTC’s consent orders and unanimous decision approving the settlement are available by clicking here and here, respectively. Public comments on the consent orders can be made electronically on the FTC’s website. After December 15, 2010, the FTC will decide whether to make the consent orders final.
Tagged in: Antitrust Enforcement,