A behavioral healthcare company operating psychiatric hospitals and treatment facilities.
Acquired by Bain Capital2010-01-01
Specialized inpatient and outpatient psychiatric care
Psychiatric Solutions will likely cut nursing staff and replace registered nurses (RNs) with less-qualified licensed practical nurses (LPNs) or nursing aides to reduce labor costs
Psychiatric Solutions will likely sell hospital real estate and lease it back, extracting equity for Bain Capital investors
Psychiatric Solutions will likely aggressively code for higher-reimbursement psychiatric procedures and diagnoses to boost revenues
Psychiatric Solutions will likely eliminate unprofitable but essential psychiatric and behavioral health services, forcing patients to seek care elsewhere
Psychiatric Solutions will likely charge acquired hospitals large management and consulting fees, diverting funds away from patient care
Psychiatric Solutions will likely announce 'optimization' initiatives and shuffle leadership, giving the appearance of change
Psychiatric Solutions will likely begin staffing cuts under the guise of 'efficiency' programs, while also reviewing service lines
Patients at Psychiatric Solutions facilities will likely experience noticeably declining service quality, with longer wait times and reduced access to specialized care
Major issues will likely emerge at Psychiatric Solutions, such as the closure of psychiatric departments or quality scandals
Psychiatric Solutions may potentially face bankruptcy, hospital closures, or a fire sale to another operator
Other companies that followed a similar path after PE acquisition
Closely monitor Psychiatric Solutions facilities for any changes in staffing, service quality, and access to specialized psychiatric and behavioral health services
Be aware of potential billing issues and advocate for transparent and ethical coding practices
Research alternative psychiatric care options in the community in case Psychiatric Solutions reduces or eliminates essential services
Voice concerns to local authorities and regulatory bodies if Psychiatric Solutions' actions negatively impact patient care and safety
Community-focused healthcare
Integrated managed care consortium