Universal Health Services has acquired Foundations Recovery Network, LLC for approximately $350 million and has secured Federal Trade Commission approval on the deal. Foundations will add 322 residential beds in four facilities and eight outpatient centers to the Universal portfolio, with 140 more beds in the pipeline.
According to Universal, Foundations will serve as a platform for growth in its new substance use disorder service line. The deal brings with it Foundations’ direct-to-consumer marketing model—which includes a call center, a national sales team and web marketing—as well as the organization's conference events.
“The future of healthcare is consolidation of providers and payers, integration of substance use disorders with mental health disorders—and ultimately with complete medical health—and providing proven value for payers and consumers,” Rob Waggener, CEO of Foundations Recovery Network, told Behavioral Healthcare today. “Those who pick their partners early in this evolution, and pick their partners wisely, will succeed in the long-term.”
The transaction will finalize within the coming weeks.
Universal Health Services has traditionally focused on acute care hospitals and ambulatory centers with more than 200 locations throughout the United States, Puerto Rico, the United Kingdom and the U.S. Virgin Islands. According to analysts, Universal is riding the tailwinds of the Affordable Care Act, which increases insurance coverage for behavioral health services. In the first quarter of 2015, revenue at its acute care facilities grew 12.2 percent and 6.3 percent at its behavioral health facilities.
Its competitor, Acadia Healthcare Company, has completed more than a dozen acquisitions in the past year, most notably, CRC Health Group, which it bought in February.