Universal Health Services : Mercy Health and UHS Announce Plans to Build Inpatient Psychiatric Hospital

Grand Rapids, MI (March 31, 2021) - Havenwyck Hospital, an affiliate of Universal Health Services (NYSE: UHS), was issued a state Certificate of Need (CON) Proposed Decision on March 29, 2021, tentatively approving development of a new inpatient behavioral health hospital with 60 adult inpatient beds. The proposed facility will include space for the development of 24 additional inpatient beds for geriatric psychiatric patients plus space for future expansion.

While the CON review was pending, Mercy Health and UHS began exploring a potential joint venture to build the new inpatient psychiatric hospital, with capacity for up to 96 beds, including the 24-bed geriatric psychiatric unit, partial hospitalization services and crisis management services, near the Mercy Health Southwest Campus in Kent County. The proposed hospital will address the growing unmet need for accessible, high-quality behavioral health services in West Michigan.

Once Havenwyck Hospital receives a CON Final Decision approving the project, the health organizations expect to finalize the agreement over the next few months. When finalized, the joint venture represents a combination of two powerful forces: UHS, one of the nation's leading providers of Behavioral Healthcare, and Mercy Health, which is part of Trinity Health, the nation's second largest Catholic health system.

'The need is here and growing,' said Matthew Biersack, MD, interim president and chief medical officer of Mercy Health Saint Mary's. 'The shortage of mental health resources is a national issue. Approval of the CON applications is a positive step forward on our journey to expand access and options serving more patients in Kent county and surrounding communities.'

Mercy Health Saint Mary's provides behavioral health services through its inpatient unit, outpatient and ambulatory care sites, and tele-psychiatry programs. Demand for services has increased in recent years, and the COVID-19 pandemic has exacerbated the need for inpatient psychiatric capacity for all populations in the region.

UHS is one of the nation's largest and most respected providers of healthcare in the nation with over 300+ Facilities. UHS' five Behavioral Health Facilities located in Michigan - Cedar Creek Hospital, Forest View Hospital, Foundations Detroit, Havenwyck Hospital and Skywood Recovery - provide compassionate mental healthcare treatment and services delivered by staff who are dedicated to helping patients transform their lives for the better.

Mercy Health selected UHS as its partner because of its long-standing commitment to patient and family-centered care, strong clinical outcomes and proven track record of partnering with community-based entities.

'We are excited to work together with Mercy Health on the construction of a new facility that will incorporate the latest innovative evidence-based care elements for maximum patient safety,' said Diane Henneman, Divisional Vice President, Behavioral Health, UHS. 'Mercy Health is an outstanding provider of critically needed services in West Michigan. Our missions are aligned, and we share a deep commitment to expand access to compassionate care and treatment for all populations in region.'

Subject to final CON and other regulatory approvals, construction on the new inpatient psychiatric hospital would begin in 2021. The facility is expected to open in spring 2023.

About Mercy Health

Mercy Health is a regional, multi-campus, Catholic health care system serving West Michigan and the lakeshore with 3 hospital campuses, 736 hospital beds, and more than 8,000 colleagues, as well as hospice, home health and long-term care service offerings. Mercy Health has annual operating revenues of about $1.4 billion and returns about $80 million to its communities annually through charity care and community benefit programs. Mercy Health Physician Partners, a multi-specialty medical group, employs more than 960 physicians and advanced practice professionals in more than 80 physician offices in Grand Rapids, Muskegon, Holland and along the West Michigan lakeshore. Mercy Health, a member of Trinity Health, is committed to being a trusted health partner for life, transforming the communities we serve, by providing high-quality care that is the most accessible, compassionate and personalized in West Michigan. Visit us at www.MercyHealth.com

About Universal Health Services (UHS) / Havenwyck

One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, annual revenues were $11.6 billion for 2020. In 2021, UHS was again recognized as one of the World's Most Admired Companies by Fortune; in 2020, ranked #281 on the Fortune 500; and listed #330 in Forbes ranking of U.S.' Largest Public Companies.

Our operating philosophy is as effective today as it was over 40 years ago, enabling us to provide high-quality care to our patients and their loved ones. Our strategy includes building or acquiring hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has 89,000 employees and through its subsidiaries operates 26 acute care hospitals, 334 behavioral health facilities, 39 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 38 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).