Psychiatric Solutions


Psychiatric Solutions, Inc. was an operator of psychiatric facilities in the United States. They were bought out by Universal Health Services.

History

Joey Jacobs and Bryce DeHaven, former executives of Hospital Corporation of America for over 20 years, founded Psychiatric Solutions, Inc. in 1997. On May 17, 2010 Psychiatric Solutions was purchased by Universal Health.

Legal problems

A detailed series of articles published by The Los Angeles Times in conjunction with ProPublica exposed many cases of abuse and negligence at PSI facilities nationwide. ProPublica's news reports obtained many documents revealing abuse at PSI facilities. PSI hospitals have about one-third fewer staffers per bed than comparable facilities.
In March 2010, The Wall Street Journal reported that Psychiatric Solutions was being investigated for breach of fiduciary duty, lying to investors about safety issues at its facilities, and other violations of state laws.
In May 2010, it was reported that the United States Department of Justice is investigating PSI for shareholder fraud, and class action lawsuits have been filed against it on behalf of shareholders.

Acquisition

purchased Psychiatric Solutions in May 2010 for $2 billion in cash and wiping out $1 billion worth of debt.