MedCath Corporation was an American cardiac health care company, publicly traded on the NASDAQ. The company was founded in 1988 as MedCath Partners, a for-profit corporation that offered cath lab , nuclear cardiology , and sleep medicine services. By 1998, the firm was known as Medcath, Inc. In 1994, the company began opening and operating acute care cardiac hospitals. Following passage of ObamaCare, which banned new physician-owned hospitals, MedCath sold its health care assets through a series of divestitures, liquidated, dissolved and distributed net proceeds to its shareholders.
31-499: In the early months of 2005, MedCath significantly shifted its corporate strategy. Instead of building cardiac hospitals and seeking physicians to invest in them, MedCath began partnering with existing hospitals or health care systems to expand existing cardiac care units or build new cardiac care units in existing hospitals. The strategy proved highly popular with stockholders, and the company stock price rose to $ 31.80 in September 2006 from
62-400: A crisis PR plan. It also fired an employee that the company believed to have spoken to a reporter; it sued a former employee it alleges leaked damaging internal surveillance videos; it threatened to sue other employees; at least one facility held a series of town hall meetings to warn employees from speaking with us; it conducted "in-depth interviews" with nearly two dozen staff, then distributed
93-634: A liquidating distribution of $ 6.85 per share, to be paid October 13, 2011 to stockholders of record on October 6, 2011. On August 1, 2011, MedCath announced the completion of the sale of its ownership interest in Arkansas Heart Hospital to AR-MED LLC based on a hospital valuation of $ 73.0 million. On October 3, 2011, MedCath announced that it sold its interest in Louisiana Medical Center & Heart Hospital to Cardiovascular Care Group for approximately $ 23.0 million. MedCath also announced
124-676: A liquidating distribution of between $ 5.75 and $ 6.25. Effective September 21, 2012, as authorized by the Board of Directors and its stockholders, MedCath filed its Certificate of Dissolution with the State of Delaware. Universal Health Services Universal Health Services, Inc. ( UHS ) is an American Fortune 500 company that provides hospital and healthcare services, based in King of Prussia , Pennsylvania . In 2023, UHS reported total revenues of $ 14.3b. Alan B. Miller , who currently serves as
155-686: A local soup kitchen. St. Simons By The Sea contracts physician services with Southland MD in Thomasville, Georgia . As of June 2024, the UCS website lists the following medical and acute care facilities in the United States. UHS also operates over 300 behavioral health facilities in the United States and the United Kingdom , including: Psychiatric Solutions, Inc. Psychiatric Solutions, Inc.
186-760: A low of $ 14 a share in May 2006. Industry observers credited the shift in strategy to the company's chief executive officer, O. Edwin French, who took over leadership of MedCath in February 2006 (he'd previously been president of the acute care hospital division of Universal Health Services ). French hired Phil Mazzuca (formerly with Iasis Healthcare ) as chief operating officer. Art Parker, MedCath's Chief Financial Officer, replaced French as Chief Executive Officer following French's retirement in September 2011. On March 1, 2010, MedCath announced that it would consider strategic options, including
217-414: A medical director nor licensed psychiatrist provided the required direction for psychiatric services or for the development of initial or continuing treatment plans. The settlement further resolved allegations that the entities filed false records or statements to Medicaid when they filed treatment plans that falsely represented the level of services that would be provided to the patients. On July 10, 2020,
248-445: A number of their facilities, nationwide. During the investigation, it was discovered that the company was earning nearly two-thirds of its revenue from Medicare and Medicaid , maintaining a profit margin of 25%, compared to an average of 6% in other facilities, and employed one-third fewer staffers per bed resulting in higher profits for the organization. The company was fined multiple times for safety violations, and at one facility,
279-459: A patient's right to be discharged or holding a patient without the proper documentation", and unnecessary extension of stay times to the maximum Medicare payout. UHS denied the conclusions of the report. UHS stock fell approximately 12% after publication. According to BuzzFeed investigative reporter Rosalind Adams, UHS responded to the report by hiring "a global PR firm that offers specialized crisis management services... UHS didn't just implement
310-407: A possible sale of the company, or the sale of individual hospitals and assets. MedCath said its board had formed a strategic options committee of independent directors to consider alternatives. MedCath's decision to consider strategic options was driven by passing of federal health care legislation that included a ban on new physician-owned hospitals. On October 4, 2010, MedCath announced it completed
341-461: A public apology that two of them signed; it enlisted one of the most powerful law firms in the United States; it built multiple, high-production-value websites specifically designed to overcome the reputational damage that our reporting might cause." A UK subsidiary, Cygnet Health Care , was the subject of a BBC investigation that found that staff had been taunting, provoking and scaring vulnerable people. It runs 140 mental health services across
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#1733086221476372-908: The California Department of Public Health withdrew its license revocation notice. According to a petition started on Change.org by Terri-Ann Simonelli of Henderson, Nevada , Spring Valley Hospital (owned and operated by UHS) claimed that their policy required power of attorney for a same-sex partner to make medical decisions on behalf of their partner. If true, this would seemingly violate new Department of Health and Human Services rules enabling same-sex partners to make said decisions, with or without power of attorney. In September 2012, UHS and its subsidiaries, Keystone Education and Youth Services LLC and Keystone Marion LLC d/b/a Keystone Marion Youth Center agreed to pay over $ 6.9 million to resolve allegations that they submitted false and fraudulent claims to Medicaid . Between October 2004 and March 2010,
403-589: The UK . 85% of its services are "rated good or outstanding by our regulators". New admissions were banned at Cygnet Acer clinic after the Care Quality Commission found it unsafe to use. A patient hanged herself, others self harmed, ligature points were found where patients could hang themselves and too many of the staff were untrained to deal with the highly vulnerable patients at the clinic. The company bought four inpatient units which were previously operated by
434-741: The $ 117 million to be paid by UHS to resolve these claims, the federal government will receive a total of $ 88,124,761.27, and a total of $ 28,875,238.73 will be returned to individual states, which jointly fund state Medicaid programs." On December 7, 2016, BuzzFeed published a report detailing questionable practices within UHS psychiatric facilities. The report includes allegations of holding nonthreatening patients against their will, manipulative misinterpretation of patient testimonies to fit guidelines to involuntary confinement, aggressive staff layoffs and understaffing in hospitals, needless patient deaths due to understaffing and misprescription of medication, "violating
465-489: The Danshell Group in 2018. All four were condemned by the Care Quality Commission which raised concerns about patients' "unexplained injuries" and high levels of restraint in 2019. On February 8, 2024, a lawsuit was filed against the company's Dothan, Alabama -based Laurel Oaks Behavioral Health Center and its CEO Janette Jackson which alleged that Laurel Oaks Behavior Health Center mishandled numerous incidents involving
496-704: The Rancho Springs Medical Center ( Murrieta ) and Inland Valley Regional Medical Center ( Wildomar ) in California with decertification in June 2010 while the State of California warned of a possible hospital license revocation. Universal Health Services implemented a program to address all concerns and in November 2011 the two hospitals passed a CMS Certification Survey. As a result, CMS rescinded its termination notice and
527-807: The Stewards Foundation, marking the first time a for-profit corporation purchased hospitals from a nonprofit religious organization. In 1983, UHS purchased Qualicare, Inc. for more than $ 116 million. The purchase included 11 acute care hospitals and four behavioral health hospitals. In 1986, UHS created Universal Health Realty Income Trust, the first REIT in the healthcare industry. In 1991, UHS stock trading moved from NASDAQ to NYSE. In November 2010, UHS reached an agreement in May to acquire Psychiatric Solutions, Inc. for $ 3.1 billion. In June 2012, UHS announced its plans to acquire Ascend Health Corporation for $ 517 million. In February 2014, UHS bought Palo Verde Mental Health for an undisclosed amount, renaming
558-727: The US Department of Justice announced a $ 122 million Fraudulent Claims case with "Universal Health Services, Inc., UHS of Delaware, Inc.(together, UHS), and Turning Point Care Center, LLC (Turning Point), a UHS facility located in Moultrie, Georgia , have agreed to pay a combined total of $ 122 million to resolve alleged violations of the False Claims Act for billing for medically unnecessary inpatient behavioral health services, failing to provide adequate and appropriate services, and paying illegal inducements to federal healthcare beneficiaries." From
589-625: The acquisition of Foundations Recovery Network based in Brentwood, Tennessee for $ 350 million. In August 2016, UHS bought Desert View Hospital in Pahrump, Nevada for an undisclosed amount. In December of that year, UHS acquired Cambian Group PLC's Adult Services Division. In July 2018, UHS announced its acquisition of the Danshell Group. On September 28, 2020, Universal Health Services Inc. announced that its network went offline after an unspecified "IT security issue". In September 2020, consistent with
620-974: The announcement: "The government alleged that, between January 2006, and December 2018, UHS's facilities admitted federal healthcare beneficiaries who were not eligible for inpatient or residential treatment because their conditions did not require that level of care, while also failing to properly discharge appropriately admitted beneficiaries when they no longer required inpatient care. The government further alleged that UHS's facilities billed for services not rendered, billed for improper and excessive lengths of stay, failed to provide adequate staffing, training, and/or supervision of staff, and improperly used physical and chemical restraints and seclusion. In addition, UHS's facilities allegedly failed to develop and/or update individual assessments and treatment plans for patients, failed to provide adequate discharge planning, and failed to provide required individual and group therapy services in accordance with federal and state regulations. Of
651-694: The assault of an eight-year-old boy residing in the facility. The boy was reportedly assaulted by his larger roommate while he residing at the facility for a week in 2022. Universal Health Services would be sued as well. The lawsuit also noted that a 40-year-old man was convicted in 2011 of sexually assaulting a teenage patient while employed at Laurel Oaks. A 17-year-old patient had been charged in 2014 with felony counts of first-degree sodomy as well. On May 16, 2021, Detroit Free Press published an article exposing St. Simons By The Sea (formerly Focus By The Sea) in St. Simons Island, Georgia for recruiting patients from
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#1733086221476682-429: The company's Executive Chairman, founded Universal Health Services, Inc. in 1979. Within 18 months of its founding, UHS owned four hospitals and had management contracts with two additional hospitals. In 1979, UHS entered Las Vegas with the purchase of Valley Hospital . In 1980, the company chose its first Board of Directors. In 1981, UHS held its initial public offering. In 1982, UHS purchased five hospitals from
713-558: The company's long-standing succession plan, UHS announced that Alan B. Miller would step down as CEO in January 2021 and that President Marc D. Miller would be named CEO. UHS ranked on the Fortune 500 in 2021, 2022 in 2023 and 2024 UHS was named on the Fortune World's Most Admired List in 2024 2023, 2022, 2021 and 2020. The Centers for Medicare and Medicaid Services (CMS) threatened
744-481: The entities allegedly provided substandard psychiatric counseling and treatment to adolescents in violation of the Medicaid requirements. The United States alleged that UHS falsely represented Keystone Marion Youth Center as a residential treatment facility providing inpatient psychiatric services to Medicaid enrolled children, when in fact it was a juvenile detention facility. The United States further alleged that neither
775-575: The facility to Palo Verde Behavioral Health. In April of that year, UHS announced the acquisition of the Psychiatric Institute of Washington . In September of that year, UHS' stock joined the S&;P 500 Index and acquired Cygnet Health Care Limited for approximately $ 335 million. In August 2015, UHS acquired Alpha Hospitals Holdings Limited for $ 148 million from private equity group C&C Alpha Group . In September of that year, UHS announced
806-543: The federal government took the unusual step of termination from the Medicare program, and withholding federal funds from one facility, for a period of over four months, costing the organization at least $ 1.5 million in lost revenue. After the CEO, Joey Jacobs, replaced a management team at one facility, saying it would "continue to get better," the problems continued. In March 2010, Business Wire reported that Psychiatric Solutions
837-766: The sale of Hualapia Mountain Medical Center in Kingman, Arizona, to Kingman Regional Medical Center. On December 1, 2011, MedCath announced it sold its ownership interest in Harlingen Medical Center and HMC Realty, LLC to Prime Healthcare Services for $ 9.0 million. On July 2, 2012, MedCath announced it sold its ownership interest in its remaining hospital, Bakersfield Heart Hospital, Bakersfiled, CA, to Cardiovascular Care Group for approximately $ 34.0 million. MedCath also announced that its shareholders had approved its plan of complete liquidation and dissolution, and announced
868-524: The sale of TexSan Heart Hospital, San Antonio, Texas, to Methodist Healthcare System of San Antonio for approximately $ 78.5 million. On May 5, 2011, in a deal worth $ 25 million, MedCath announced that its sold most of its assets of its MedCath Partners division to a joint venture of LifePoint Hospitals and Duke University Health System . On August 1, 2011, MedCath announced the sale of Heart Hospital of New Mexico to Lovelace Health Systems for approximately $ 119.0 million. MedCath's Board of Directors approved
899-586: The sales involving its interest in two hospitals, Arizona Heart Hospital and Avera Heart Hospital of South Dakota. Arizona Heart Hospital was sold to Vanguard Health Systems for approximately $ 32.0 million. MedCath sold its one-third interest in Avera Heart Hospital of South Dakota for $ 20.0 million. On November 2, 2010, MedCath announced it completed the sale of Heart Hospital of Austin to St. David's Healthcare Partnership, L.P. for approximately $ 83.8 million. On January 3, 2011, MedCath announced it completed
930-620: Was an operator of psychiatric facilities in the United States . 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 Services . In 2008, ProPublica , in collaboration with the Los Angeles Times and other news organizations, reported on substandard care, inadequate training, and staffing shortfalls at Psychiatric Solutions, resulting in injuries, sexual assault, and deaths, in
961-440: Was being investigated for breach of fiduciary duty, lying to investors about safety issues at its facilities, and other violations of state laws. Allegations that the director and other company officials made material misstatements and omissions about the company finances and liabilities, in order to inflate stock prices, caused its stock prices to drop, resulting in large losses for shareholders. As more reports were published about