Universal Health Services


Universal Health Services is an American Fortune 500 company that provides hospital and healthcare services, based in King of Prussia, Pennsylvania. In 2019, its annual revenues were $11.37 billion.

Company history

, who currently serves as the company’s Chairman and Chief Executive Officer, 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 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.
1991, UHS stock trading moved from NASDAQ to NYSE. In 1997, UHS acquired an 80% stake in George Washington University Hospital. In 1999, Debra K. Osteen was appointed vice president of UHS and president of the Behavioral Health Division.
In 2003, Steve Filton was named UHS's Chief Operating Officer. In 2007, UHS formed UHS Development Company, Inc. to build hospitals. Richard C. Wright was named president of UHS Development Company.
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 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's 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 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.

Controversies

Hospital licenses

The Centers for Medicare and Medicaid Services threatened the Rancho Springs Medical Center and Inland Valley Regional Medical Center 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 the California Department of Public Health withdrew its license revocation notice.

Allegations of noncompliance with same-sex visitation law

According to a petition started on change.org by Terri-Ann Simonelli of Henderson, Nevada, Spring Valley Hospital 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.

Fraudulent Medicaid claims

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, 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 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.

Buzzfeed investigation

On December 7, 2016, Buzzfeed News published an investigative 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 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; its stock fell approximately 12% after publication.
A follow-up Buzzfeed article on May 23, 2017 detailed the FBI and Defense Department investigation of UHS psychiatric facilities for allegations of actions exposed by the investigative report. Buzzfeed subsequently published a piece that details the hospital giant's "$100,000 PR crisis plan" to "spin" the publication.

$122 Million False Claims Settlement

On July 10, 2020, the US Department of Justice announced "Universal Health Services, Inc. And Related Entities To Pay $122 Million To Settle False Claims Act Allegations Relating To Medically Unnecessary Inpatient Behavioral Health Services And Illegal Kickbacks," for "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." According to the DOJ announcement, "the settlement with UHS was the result of a collaborative effort among numerous federal and state agencies." The deal includes that "UHS must retain an independent monitor, selected by the OIG, which will assess UHS’s Behavioral Health Division’s patient care protections and report to the OIG.  In addition, an independent review organization will perform annual reviews of UHS’s inpatient behavioral health claims to federal health care programs."
The whistleblower team set up a dummy site, "UHS Behind Closed Doors," which appeared to be a non-profit intended to bring scrutiny to UHS facilities and force oversight and shut-downs. Victims of abuse in UHS mental health facilities were encouraged to submit their stories. The whistleblowers used these to build their case and now that the settlement is made, the website is shut down; visitors are automatically redirected to the DOJ announcement. "The whistleblower share of the federal portion of the settlement will be $15,862,457.03.  The settlement with Turning Point resolves an additional qui tam lawsuit filed in the Northern District of Georgia.  The whistleblower in that suit will receive $861,853.64, from the federal share of the Turning Point settlement." However, there is nothing for the victims and barely anything to improve patient treatment and did not get any say in what should be changed.

Cygnet Healthcare

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 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 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.