Strategic Behavioral Health, LLC (SBH), a national provider of inpatient and outpatient services, announced that effective Jan. 1, it has acquired the assets of Montevista Hospital and Red Rock Behavioral Health Hospital in Las Vegas from Universal Health Services, Inc. (UHS).
The acquisition is being made pursuant to the divestiture requirements agreed upon by the Federal Trade Commission, the Nevada Attorney General, and UHS following UHS's acquisition of Psychiatric Solutions. SBH is a portfolio company of Dobbs Management Service, LLC (DMS) which represents the John Hull Dobbs family of Memphis.
The Montevista and Red Rock facilities are licensed acute psychiatric hospitals with 101 total beds providing services on two campuses in Las Vegas. Montevista has served Las Vegas for over 25 years as a provider of acute behavioral healthcare services including geriatric, adult, chemical dependency, and child and adolescent areas.
Montevista's sister facility, Red Rock, was established in 2005 to expand inpatient acute behavioral services to the geriatric population. The facilities bring the total existing or planned beds for Strategic Behavioral Health, LLC to over 350 beds in North Carolina, Colorado, and Nevada across five facilities.
Ben Winbery, CEO of both the Montevista and Red Rock facilities commented, "I am very pleased to be joining such a solid company with a true commitment to quality clinical care and a long-term view of the operations."
Jim Shaheen, Founder and Chief Executive Officer of SBH, stated in a press release, "We are excited to be entering the Las Vegas market through the acquisition of Montevista and Red Rock. We are impressed with its management and staff and their attention to patient-centered care. We believe we have an opportunity to significantly grow both facilities."
Shaheen added, "While SBH has historically focused on organic growth through the opening of new facilities, this acquisition was too attractive to pass up given the expansion opportunities it presents. Because of the high quality care being provided by the facilities, both are operating at or near capacity. As a result, we will be adding 60-80 additional beds at the Montevista site. We anticipate that construction will begin in 2012."
Edward Dobbs, President of DMS, commented, "This Las Vegas acquisition is highly complementary to SBH's existing assets and provides a great base for further growth. We look forward to additional opportunities to invest in SBH's growth through greenfield facilities and highly selective strategic acquisitions. Our long-term goal is to make SBH a leading private provider of behavioral healthcare services in the nation."
SBH worked with Fifth Third Bancorp, First Tennessee Bank, and Pinnacle Financial to finance the Montevista and Red Rock acquisitions. When coupled with the financing for the expansion of North Carolina and Colorado operations, the financing provides $40 million in funding with the ability to expand for future projects.
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