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UHS to sell 80-bed Texas hospital

Shannon Medical Center in San Angelo, Texas, has signed an agreement to acquire River Crest Hospital, an 80-bed behavioral health facility from King of Prussia, Pa.-based Universal Health Services.

Forbes Advisor ranked Texas — for the second year in a row — as the worst state for mental healthcare, and behavioral health resources has been identified as the most critical healthcare need in the San Angelo area, according to Shannon Medical Center President and CEO Shane Plymell. 

"These findings demonstrate the urgency to make this right next step to address the behavioral health needs of our community," Mr. Plymell said in a June 5 news release. "This new addition to the Shannon Health System will ensure community members of all ages who struggle with behavioral health and substance abuse issues will have expanded access to specialized care."

River Crest offers behavioral health and substance use disorder programs for children, adolescents, adults and military members. Shannon has a 22-bed regional inpatient psychiatric facility that provides behavioral health services for adults and senior adults. Both facilities offer outpatient behavioral health programs.

Three details of the proposed acquisition:

  • The addition of River Crest will help ensure a seamless transition to expanded services for Shannon patients who need a higher level of care. Specifically, Shannon said it will improve connectivity to a combined care team, implement collaborative processes and use the additional resources to provide a better patient experience.

  • The transaction would help secure the future of comprehensive behavioral health services for the region and preserve access to local care, according to Shannon.

  • Shannon will expand behavioral health services in the Concho Valley through facility upgrades, services, technology and equipment as well as additional behavioral health employees and providers. Phase one will add 20 beds to River Crest campus; phase two will add 20 more beds to the facility.

The acquisition is expected to be completed in September, pending regulatory approval.

"We have been impressed by the conversations we've had with Shannon about the current and future needs of behavioral health in the San Angelo community," Phuong Cardoza, UHS' group director for behavioral health, said. "Joining Shannon will ensure River Crest can continue to meet this critical community need and to invest in our physicians and staff who provide outstanding care every day."

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