FHC Health Systems Announces Agreement to Sell Alternative Behavioral Services
Model Offers Promise of More Accessible Care Nationwide
Norfolk, Virginia – May 30, 2006
FHC Health Systems today announced the signing of an agreement to sell subsidiary company Alternative Behavioral Services (ABS) to Psychiatric Solutions, Inc. (PSI), a publicly-traded healthcare provider headquartered in Franklin, Tennessee. The transaction is expected to close before August.
ABS operates psychiatric hospitals, inpatient treatment facilities, residential treatment centers, and other treatment programs specializing in behavioral health services for adults and children in multiple states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
"ABS has been a source of tremendous personal and professional pride, and this sale represents a wonderful opportunity for both FHC Health Systems and the employees of ABS," states Ronald I. Dozoretz, M.D., Founder and Chairman of FHC Health Systems. "With this acquisition, I am certain that PSI will continue the tradition of innovation, quality, and clinical excellence for which ABS is known in the marketplace."
Dozoretz continues. "At the same time, FHC will now be able to devote even more attention and more resources to the growth of ValueOptions, our managed care business unit, as well as the smaller companies that make up FHC."
ValueOptions, which represents the bulk of FHC revenue, covers over 24 million lives through a variety of managed care contracts with health plans, employers, and state and county agencies. Managing care in all 50 states, ValueOptions directs a national provider network of over 70,000 practitioner locations.