Universal Health Services Acquires Cygnet Health Care

Hospital operator Universal Health Services (UHS; King of Prussia, PA, USA) has acquired Cygnet Health Care (Sevenoaks, United Kingdom) for around USD 335 million.

The transaction marks the return of UHS, the largest healthcare provider in the USA, to Europe. The behavioral health division of UHS currently operates 195 facilities in 37 US states and in Washington DC, Puerto Rico, and the US Virgin Islands providing comprehensive inpatient and outpatient mental health and substance abuse services, as well as a number of specialist programs for eating disorders, trauma, autism spectrum disorders, and neuropsychiatry services. It also operates an acute care division, providing medical and surgical services in 25 facilities.

The acquisition of Cygnet Health Care will add 17 facilities to UHS in the United Kingdom, which includes 15 inpatient behavioral health hospitals and two nursing homes with a total of 743 beds. The acquisition could be a first step in strategic globalization move motivated by the purchase in July 2014 of UK-based psychiatric hospital operator Partnerships in Care (PiC; Suffolk, United Kingdom) by UHS' rival Acadia Healthcare (Franklin, TN, USA).

“We are proud to have been chosen to continue Cygnet Health Care's long history of providing high quality healthcare in this very attractive market. Cygnet offers services for children, eating disorders and autism,” said Alan Miller, CEO and board chairman of UHS. “These facilities are very well run by a highly experienced and committed management team. We look forward to sharing best practices and building on their tradition of excellence as we look to grow and expand our services in the UK.”

“We are delighted to be combining Cygnet with UHS. Both companies have been in existence for many years and my overriding feeling is that we have a strong cultural fit with a mutual desire to provide the highest possible quality of patient care,” said David Cole, CEO of Cygnet. “We will be extending our care pathways, developing new specialist services, and opening new facilities with our new partners. Under UHS ownership we will be supported in developing new services, investing in existing services, extending the care pathway, and rewarding innovation.”

Related Links:
Hospital operator Universal Health Services
Cygnet Health Care
Partnerships in Care