Universal Health Services to Acquire Foundations Recovery Network

Hospital operator Universal Health Services (UHS; King of Prussia, PA, USA) has entered an agreement to buy addiction treatment provider Foundations Recovery Network (FRN; Brentwood, TN, USA) for USD 350 million.

Founded in 1995, FRN is a leader in addiction treatment and focused on treating adults with addiction and mental health disorders through an evidence-based integrated treatment model in residential and outpatient settings. The company operates a direct-to-consumer marketing model, which includes a call center, a US national sales team, and a web marketing program. The acquisition will serve as a platform for growth in a new substance use disorder service line for UHS, adding 322 residential beds in four facilities and eight outpatient centers, with a further 140 beds in the pipeline under a scheduled expansion.

UHS is one of the largest hospital companies in the United States. The company has several subsidiaries, including a behavioral health division that operates 195 facilities in 37 US states, as well as in Washington DC, Puerto Rico, the US Virgin Islands, and the United Kingdom 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.

“We are pleased to announce the forthcoming acquisition of Foundations. We were attracted to their proven track record of providing high-quality treatment and reputation for excellence in this very attractive market segment,” said Alan Miller, board chairman of UHS. “They bring expertise as a published authority on integrated treatment and also have excellent clinical programs and customer relationships.”

“Demand for evidence-based, high quality substance-use disorders is driving the immediate need for additional services nationwide. With access to UHS’s broad market presence, we hope to ramp our pace of growth exponentially” said Rob Waggener, CEO of FRN. “We expect to complete this transaction within the coming weeks.”

In 2014 UHS also purchased Cygnet Health Care, adding 17 facilities in the United Kingdom, which include 15 inpatient behavioral health hospitals and two nursing homes.

Related Links:
Universal Health Services
Foundations Recovery Network