FRANKLIN, Tenn., April 27 /PRNewswire-FirstCall/ -- Psychiatric Solutions, Inc. (“PSI”) today announced that it had signed a definitive agreement with Heartland Healthcare, headquartered in New York City, for the purchase of four inpatient psychiatric facilities in a $47 million transaction. The facilities include a 126-bed licensed facility in Summit, NJ; a 100-bed licensed facility in Ft. Lauderdale, FL; a 98-bed licensed facility in Arlington, TX; and a 36-bed licensed facility in Eden Prairie, MN. In addition, PSI will acquire a contract from Heartland to manage an inpatient psychiatric unit in a facility owned by others. The assets to be acquired produced revenues of approximately $45 million in 2003. PSI expects this transaction to be accretive to its financial results. The transaction is expected to be completed by June 1, 2004, pending certain regulatory approvals.
Joey Jacobs, PSI’s Chairman, President and Chief Executive Officer, said, “Consistent with our long-term strategies for becoming the leading inpatient psychiatric care provider in the country, we continue to move decisively to acquire high quality facilities that are leaders in their markets and that offer significant organic growth potential. As we have demonstrated in 26 previous facility acquisitions since August 2001, we are confident of the opportunity we have to expand revenues in these facilities through increased patient days and improved pricing. We also will implement our proven initiatives to enhance operating efficiencies.
“Upon consummation of this transaction, we will have acquired seven inpatient psychiatric facilities with more than 700 beds since the beginning of 2004. Although these transactions exceed our target for 2004 of four to six facility acquisitions, we are continuing to evaluate additional transactions.”
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements other than those made solely with respect to historical fact and are based on the intent, belief or current expectations of PSI and its management. PSI’s business and operations are subject to a variety of risks and uncertainties that might cause actual results to differ materially from those projected by any forward- looking statements. Factors that could cause such differences include, but are not limited to: (1) potential competition which alters or impedes PSI’s acquisition strategy by decreasing PSI’s ability to acquire additional facilities on favorable terms; (2) the ability of PSI to improve the operations of acquired facilities; (3) the ability to maintain favorable and continuing relationships with physicians who use PSI’s facilities; (4) the ability to receive timely additional financing on terms acceptable to PSI to fund PSI’s acquisition strategy and capital expenditure needs; (5) risks inherent to the healthcare industry, including the impact of unforeseen changes in regulation, reimbursement rates from federal and state healthcare programs or managed care companies and exposure to claims and legal actions by patients and others; and (6) potential difficulties in integrating the operations of PSI with acquired operations, including the potential acquisition of Heartland Healthcare. The forward-looking statements herein are qualified in their entirety by the risk factors set forth in PSI’s filings with the Securities and Exchange Commission, including the factors listed in the Annual Report on Form 10-K for fiscal year 2003 filed on March 25, 2004, under the caption “Risk Factors.” PSI undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward- looking statements, which reflect management’s views only as of the date hereof.
Psychiatric Solutions, Inc. offers an extensive continuum of behavioral health programs to critically ill children, adolescents and adults through its operation of 26 owned or leased freestanding psychiatric inpatient facilities with more than 3,200 beds. The Company also manages freestanding psychiatric inpatient facilities for government agencies and psychiatric inpatient units within general acute care hospitals owned by others.
Psychiatric Solutions, Inc.
CONTACT: Brent Turner, Vice President, Treasurer and Investor Relationsof Psychiatric Solutions, Inc., +1-615-312-5700