Universal Health Services, Inc. (UHS) has announced the completion of the previously announced acquisition of Ascend Health Corporation.
UHS's strategic acquisition of Ascend enhances its behavioral health platform by adding nine freestanding inpatient psychiatric facilities to its behavioral health portfolio. These new facilities are located in 5 states, including Texas, Arizona, Utah, Oregon and Washington State, and include 867 licensed beds (802 currently available and 65 under construction), according to a press release.
On an annualized basis, the acquisition of Ascend is expected to initially generate revenues of approximately $200 million and earnings before interest, taxes, depreciation & amortization of approximately $60 million and is expected to provide significant organic growth and expansion opportunities.
"We are pleased to bring Ascend and their talented professionals into the UHS Behavioral Health Division. We look forward to sharing and implementing best practices that are in place throughout the combined company to ultimately serve our patients with expanded treatment services and clinical expertise," said Debbie Osteen, President of the Behavioral Health Division.
In connection with its receipt of antitrust clearance for the transaction from the Federal Trade Commission (FTC), UHS has agreed to certain conditions, including the divestiture of a UHS facility in New Mexico (Peak Behavioral Health Services) within approximately six months. The revenues of this facility for the six-month period ended June 30, 2012 and the twelve-month period ended December 31, 2011 were approximately $9 million and $14 million, respectively. UHS's agreement with the FTC is publicly available on the FTC's website. UHS also announced last week that it completed the previously announced sale of Auburn Regional Medical Center, a 159-bed acute care facility located in Auburn, Washington.
Following these transactions, UHS owns or operates 197 behavioral healthcare facilities and 24 acute care hospitals in 37 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands.