Universal Health Services Takes $147 Million Write-Down On Value Of Addiction Treatment Unit

On October 25, 2019, officials with Universal Health Services (UHS) told investors that the company wrote off $147 million of the value of its addiction treatment unit, Foundations Recovery Network LLC (Foundations). UHS had acquired Foundations in 2015 for $350 million. UHS asserts that since 2015, payer control over treatment has been increasing and fewer consumers are covered for out-of-network services. Additionally, consumers are less willing to travel to obtain addiction treatment services.

When UHS acquired Foundations, there were four Foundations inpatient facilities with a total of 322 beds operating in California, Georgia, and Tennessee, and eight outpatient . . .