Psychiatric Solutions

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 a number of their facilities, nationwide.{{Cite web|last=|first=|last2=|last3=|first3=|last4=|last5=|last6=|last7=|last8=|first8=|last9=|date=2008-11-23|title=Psychiatric care's peril and profits|url=https://www.latimes.com/local/la-me-psi23-2008nov23-story.html|url-status=live|archive-url=https://web.archive.org/web/20210205030317/https://www.latimes.com/local/la-me-psi23-2008nov23-story.html|archive-date=2021-02-05|access-date=2020-12-13|website=Los Angeles Times|language=en-US}}

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, 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.{{Cite web|last=Fields|first=Christina Jewett and Robin|title=A teenager's distress and a psychiatric hospital's missteps|url=https://www.mcall.com/la-mew-2psisider23-2008nov23-story.html|access-date=2020-12-13|website=mcall.com|archive-date=2021-02-05|archive-url=https://web.archive.org/web/20210205030312/https://www.mcall.com/la-mew-2psisider23-2008nov23-story.html|url-status=live}}{{Cite web|date=2010-05-09|title=Florida Regulators Stop Admissions to Manatee's Palms Youth Services - Psychiatric Solutions Inc.'s Troubles|url=https://flaglerlive.com/4140/psychiatric-solutions-manatee/|access-date=2020-12-13|website=FlaglerLive|language=en-US|archive-date=2014-08-05|archive-url=https://web.archive.org/web/20140805190704/http://flaglerlive.com/4140/psychiatric-solutions-manatee/|url-status=live}} After the CEO, Joey Jacobs, replaced a management team at one facility, saying it would "continue to get better," the problems continued.{{Cite web|last=Jewett|first=Christina|title=Despite probe, problems continue at psych facility|url=https://www.chicagotribune.com/news/chi-riveredgefeb26-story.html|access-date=2020-12-13|website=chicagotribune.com|language=en-US|archive-date=2015-12-04|archive-url=https://web.archive.org/web/20151204110447/http://www.chicagotribune.com/news/chi-riveredgefeb26-story.html|url-status=live}}

In March 2010, Business Wire reported that Psychiatric Solutions was being investigated for breach of fiduciary duty, lying to investors about safety issues at its facilities, and other violations of state laws.{{Cite web|date=2010-03-02|title=Robbins Umeda LLP Announces Investigation of Psychiatric Solutions, Inc.|url=https://www.businesswire.com/news/home/20100302005639/en/Robbins-Umeda-LLP-Announces-Investigation-of-Psychiatric-Solutions-Inc.|access-date=2020-12-13|website=www.businesswire.com|language=en|archive-date=2021-02-05|archive-url=https://web.archive.org/web/20210205030255/https://www.businesswire.com/resourcenotfound|url-status=live}} 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 the problems at the company, the United States Department of Justice (DOJ) began investigations into the healthcare company, and a class action lawsuit was filed alleging shareholder fraud.{{Cite web|last=|first=|date=|title=Psychiatric Solutions subpoenaed by Justice Department|url=https://www.bizjournals.com/nashville/stories/2010/05/10/daily28.html|url-status=live|archive-url=https://web.archive.org/web/20100515195856/http://www.bizjournals.com/nashville/stories/2010/05/10/daily28.html|archive-date=2010-05-15|access-date=2020-12-13|website=www.bizjournals.com}}{{Cite web|title=Judge certifies Psych Solutions lawsuit class|url=https://www.nashvillepost.com/business/health-care/blog/20464169/judge-certifies-psych-solutions-lawsuit-class|access-date=2020-12-13|website=Nashville Post|language=en|archive-date=2021-02-05|archive-url=https://web.archive.org/web/20210205030252/https://www.nashvillepost.com/business/health-care/blog/20464169/judge-certifies-psych-solutions-lawsuit-class|url-status=live}}

The company was eventually purchased by Universal Health Services, who also paid $132 million in a settlement with the DOJ and other state agencies, for violations of the False Claims Act.{{Cite web|date=2020-07-20|title=UHS—For-Profit Psych Hospital's $132 Million Payout Over DOJ & MA Fraud Investigations|url=https://www.cchrint.org/2020/07/20/uhs-for-profit-psych-hospitals-132-million-payout-over-doj-ma-fraud-investigations/|access-date=2020-12-13|website=CCHR International|language=en-US|archive-date=2020-11-21|archive-url=https://web.archive.org/web/20201121234512/https://www.cchrint.org/2020/07/20/uhs-for-profit-psych-hospitals-132-million-payout-over-doj-ma-fraud-investigations/|url-status=live}}

• "Patience ... Patients: How Universal Health Systems became the top inpatient psychiatric services provider | Psychiatry & Behavioral Health Learning Network"{{Cite web|title=Patience ... Patients: How Universal Health Systems became the top inpatient psychiatric services provider|url=https://www.psychcongress.com/article/patience-patients-how-universal-health-systems-became-top-inpatient-psychiatric-services-pro|access-date=2020-12-13|website=Psychiatry & Behavioral Health Learning Network|language=en|archive-date=2021-02-05|archive-url=https://web.archive.org/web/20210205030306/https://www.psychcongress.com/article/patience-patients-how-universal-health-systems-became-top-inpatient-psychiatric-services-pro|url-status=live}}

{{Reflist}}

• [http://www.psysolutions.com PSI Homepage] {{Webarchive|url=https://web.archive.org/web/20220401214855/http://psysolutions.com/ |date=2022-04-01 }}

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Category:Psychiatric hospitals in the United States

Category:Hospital networks in the United States

Category:Companies based in Franklin, Tennessee

Category:1997 establishments in Tennessee

Category:Companies established in 1997

Category:Medical and health organizations based in Tennessee