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Universal Health Services to build $40M behavioral health facility with Michigan nonprofit

The deal advances UHS's strategy to expand its behavioral health footprint through joint ventures with nonprofit health systems.

Universal Health Services Inc., of King of Prussia, and a large nonprofit health system in Michigan announced a joint venture to build a $40 mental health hospital with 150 beds, shown here in an artist's rendering. UHS will be the majority owner.
Universal Health Services Inc., of King of Prussia, and a large nonprofit health system in Michigan announced a joint venture to build a $40 mental health hospital with 150 beds, shown here in an artist's rendering. UHS will be the majority owner.Read moreUniversal Health Services Inc.

Universal Health Services Inc. on Monday announced a joint venture with a large nonprofit health system in Michigan to build a $40 million mental-health hospital that will be majority-owned and managed by the King of Prussia company.

Construction of the 150-bed, freestanding facility in Dearborn, Mich., is expected to begin early next year, with the opening planned in early to mid-2021, said UHS and Beaumont Health, which is based in Royal Oak, Mich.

UHS, in recent years, has pursued joint ventures with nonprofit health systems as a way to expand its market share while securing community ties through existing health systems. The company said it operates more than 200 mental-health facilities that serve more than 600,000 patients annually across the United States.

The company has such an arrangement with the University of Pennsylvania Health System's Lancaster General Health in Lancaster County, where the partners opened a 126-bed behavioral-health hospital in June.

Beaumont owns eight hospitals and had $4.4 billion in revenue last year.