UHS: Annual Report

UNIVERSAL HEALTH BEHAVIORAL CARE

BEHAVIORAL HEALTH: DIFFERENT MARKET CONDITIONS. A SIMILAR STRATEGY.

The Horsham Clinic in Philadelphia acquired by UHS in 1996, is part of a network of behavioral centers located throughout Pennsylvania

In the Behavioral Health Division, the UHS strategy is much the same as that used in the acute care field. That is, to acquire properties that are or can be the dominant providers in their local markets, and then improve their clinical and operating procedures.

However, one important point of difference in this market is that most psychiatric hospitals in America are already under private ownership, and therefore do not involve the community issues encountered at Northwest Texas Hospital.

A recent example of the UHS behavioral health strategy is Timberlawn Hospital located in Dallas, Texas, one of six psychiatric facilities acquired by UHS in the past two years.

Founded in 1917, Timberlawn has long been the premier behavioral care center in the Dallas area. In fact, it was recently named one of the best psychiatric facilities in America by U.S. News and World Report. However, under its previous ownership, Timberlawn had serious economic difficulties.

When UHS acquired Timberlawn in 1996, the company immediately invested in much-needed improvements to the physical plant, upgrading patient rooms and public areas. UHS also worked to make the facility more responsive to the needs of its staff and patients.

At Timberlawn Hospital in Dallas, UHS has built on a solid clinical reputation by upgrading facilities and establishing prudent management practices.

To strengthen the financial position of Timberlawn, UHS has moved aggressively to build stronger relationships with managed care providers. This is an increasingly important factor in the behavioral care field, since managed care companies are now the largest source of reimbursement for patient services.

UHS also acquired four behavioral health facilities in Pennsylvania. Together with the Company's Keystone Center in Wallingford, Pa., these facilities compose the UHS Pennsylvania Network, with facilities in several key areas of the state: The Horsham Clinic in Philadelphia; The Meadows Psychiatric Center in State College; Clarion Psychiatric Center in Western Pennsylvania; and Roxbury in Shippensburg.

Another way that UHS is putting its behavioral expertise to work can be found in the UHS Management Services section of the Behavioral Health Division. The Management Services team creates and manages psychiatric care units within existing medical/surgical hospitals generally in suburban and rural areas where there are few behavioral facilities available.

By doing so, UHS Management Services offers community hospitals the opportunity to provide an important service to patients. At the same time, it relieves them of the need to develop the special resources and expertise required to open and manage a psychiatric facility.

UHS currently has nine Management Services units in operation, and plans to expand this highly targeted service in the years ahead.

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