FTC Seeks Public Comment on Universal Health Services' Application to Sell Las Vegas Psychiatric Facilities

Universal Health Services, Inc. (UHS) is seeking the approval of the Federal Trade Commission to sell its Las Vegas psychiatric facilities, including Montevista Hospital and Red Rock Behavioral Health Hospital, to Strategic Behavioral Health, LLC. UHS is required to sell the assets under an FTC order settling charges that its 2010 acquisition of Psychiatric Solutions, Inc. as originally proposed was anticompetitive.

According to Universal Health's application, the sale will satisfy the terms of the FTC order. UHS contends that Strategic Behavioral Health has the financial, professional, and operational resources to be a strong and effective competitive force in the Las Vegas, Nevada, market for the provision of acute inpatient psychiatric services.

Universal Health has already received FTC approval to sell assets in Delaware and must still divest assets in Puerto Rico. On June 3, 2011, UHS submitted, but subsequently withdrew, an application to divest the Las Vegas assets to Dr. Soon Kim through Signature Health Services, LLC, which does business as Aurora Behavioral Healthcare.

The Commission is accepting public comments on the application until December 12, 2011, after which it will decide whether to approve the sale. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments also can be filed electronically. Copies of the application also can be found on the FTC's website and as a link to this press release. (FTC File No. 101-0142, Docket No. C-4309; the staff contact is Elizabeth A. Piotrowski, Bureau of Competition, 202-326-2623; see press release dated November 15, 2010.)

(FYI 44.2011.wpd)