After taking a hit on its stock price in early December, Universal Health Services, Inc. announced it had completed the acquisition of Cambian Group, PLC's Adult Services Division in the U.K. for approximately $464 million.
The Q4 deal adds 81 behavioral facilities with 1,193 beds to the Cygnet brand, bringing UHS to a total of 102 facilities with approximately 2,250 beds in the U.K.
UHS stock dipped to a 52-week low of $99.72 on December 14, 2016, on a slide that began after an exposé was published by BuzzFeed, quoting whistleblowers who said UHS drove employees to fill beds by exaggerating symptoms of patients and by prolonging clinical care to maximize insurance payments.
Senator Charles Grassley (R-Iowa) sent a letter to the Department of Health and Human Services asking for clarification on what steps the department is taking to investigate the matter. The investigation is ongoing.
UHS responded with a statement saying the story was misleading and highlighted its Joint Commission Top Performer ratings for half of its qualifying behavioral health facilities.
On Tuesday, UHS’s stock price had reached $106.00, still short of its 52-week high of $139.77. Also on Tuesday, a class action lawsuit was announced against UHS by investors who allege that the company failed to disclose its practices and policies as described in the article, which they consider to be “materially false and misleading at all relevant times.”
This article was updated on January 4 at 10:30 a.m. to add the information about the class action lawsuit.